There is no official 'retirement age' in Australia. You can retire whenever you like.
But the term is often used in reference to when you are entitled to receive government support, or more specifically, the age pension.
For people born on or after 1 January 1957, the 'retirement age' is 67 years.
That's when you can apply for the pension.
The full age pension, including all supplements, is $45,037.20 per year for couples and $29,874 per year for singles.
For many retirees, that isn't enough to cover the basic costs of life in retirement — especially if you're renting.
You'll need some savings, investments, or superannuation to cover the rest.
Superannuation plays a vital role in funding retirement because it's mandatory.
Some people on low incomes can't save or invest, but if they work, they receive superannuation by default.
You can access your superannuation after you reach preservation age, which depends on your date of birth.
If you were born on or after 1 July 1964, your preservation age is 60.
You also need to retire, or start a transition-to-retirement strategy while still working, to access your superannuation at this age.
From age 65, you can access your superannuation even if you are still working.
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What's the average superannuation balance at age 67?
According to tax office data, the average superannuation balance for 65 to 69-year-olds is $404,553. The median is $198,715.
Men typically have more superannuation than women because women are over-represented in low-paying industries and tend to take more time off or work part-time for extended periods to look after their children.
The average superannuation balance for men is $428,533, and the average for women is $379,483.
The median superannuation balance for men is $206,091, and the median for women is $191,475.
Incidentally, the Albanese Government has sought to address the disparity between men's and women's superannuation by adding super to the paid parental leave (PPL) benefit.
This change will take effect from Tuesday.
Do retirees today have enough super for their retirement?
Based on the numbers above, Australians aged 65 to 69 do have enough superannuation to fund a 'modest' retirement.
But not a 'comfortable' one.
That's according to Australia's Retirement Standard, which is the trusted definitive guide to budgeting in retirement.
The Association of Super Funds of Australia (ASFA) created the Retirement Standard in 2004 and updates it quarterly for inflation.
ASFA has specific definitions for a modest and comfortable retirement.
The latest update estimates that a modest retirement costs $48,184 per year for couples and $33,386 per year for singles.
In terms of super, a modest retirement requires a superannuation balance of at least $100,000 for couples and singles.
This is a relatively low balance and reflects ASFA's assumption that retirees with a modest lifestyle receive the full pension.
The requirements for a 'comfortable' retirement are different.
A comfortable retirement costs $73,875 per year for couples and $52,383 per year for singles.
It requires a super balance of at least $690,000 for couples and $595,000 for singles, and assumes only a part-pension payment.
All of these figures assume retirees own their homes mortgage-free and receive an average 6% total annual return on their super savings.
ABS data shows that the pension is the biggest source of income for retired Aussies today. The second biggest source is superannuation.
The reason the pension is the main source is partly because the Superannuation Guarantee was only introduced in 1992.
Australians reaching so-called 'retirement age' (67 years) today were 34 years old in 1992.
This means they haven't had the benefit of super savings from day one of their working lives, the way many Gen Xers and younger generations have.
Therefore, they are more likely to need at least a part-pension along with their superannuation to fund their retirement.
In the future, more Australians will be able to expect to fund their retirement from superannuation alone.
In fact, with the Super Guarantee going up from 11.5% to 12% from Tuesday, ASFA says Australians as young as 30 years of age, earning the national median wage of $75,0000 per year for life, will be able to afford a comfortable retirement from age 67.
Are you eligible for the pension?
Earlier this month, the Department of Social Services lifted the thresholds for the pension assets and income tests.
These tests determine whether you are eligible to receive the full pension, or a part-pension if you earn or own more than the thresholds.
The changes to the pension tests come into effect on Tuesday.
