Age 67 is a financial milestone in the lives of working Australians because it's when most of us become eligible for the age pension.
While there is no official retirement age in Australia, age 67 is often referred to in this way, and with good reason.
Research from the Australian Bureau of Statistics (ABS) shows the primary reason most workers retire is new access to money.
Thus, when people reach 'pension age' — or age 67 — that's the event that often prompts them to retire.
Australian workers can retire earlier if they can afford it, which usually means relying on an income stream from their superannuation.
People born on or after 1 July 1964 can access their superannuation from age 60, or the 'preservation age', if they retire.
If they want or need to keep working beyond age 60, they can access part of their super via a transition to retirement income stream.
This allows people to work a bit less as they get older, without reducing their income.
From age 65, people can access their entire superannuation even if they are still working.
Of course, not all workers have a golden lump sum sitting in their superannuation.
The Superannuation Guarantee was introduced in 1992, which means baby boomers have not had it for their entire working lives.
Many baby boomers do not have enough superannuation to retire at age 60, so they wait until age 67 when they can get the pension.
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What is the average superannuation balance at age 67?
The Association of Superannuation Funds (ASFA) says the average balance of workers aged 65-69 years is $428,533 for men and $379,483 for women.
Unfortunately, that's not enough to fund what ASFA defines as a 'comfortable' retirement.
ASFA says a 67-year-old single needs $595,000 in superannuation and a couple needs $690,000 for a comfortable retirement.
And that assumes you also own your own home, receive at least a part pension, and achieve 6% annual returns on your investments, too.
However, ASFA says $428,533 (men) and $379,483 (women) is more than enough to fund a 'modest' retirement.
ASFA says a superannuation balance of $100,000 is all that is required to fund a modest retirement for either couples or singles.
Again, that's assuming debt-free homeownership, receipt of the full pension or close to it, and 6% annual investment returns.
According to ASFA's Retirement Standard, a comfortable retirement costs $73,875 per annum for couples and $52,383 for singles.
A modest retirement costs $48,184 per year for couples and $33,386 per year for singles.
Retirement costs more for renters, and there is an increasing number of Australians who are in this position when they stop working.
ASFA estimates that a modest retirement for renters costs $64,259 per annum for couples and $46,663 per annum for singles.
You can check out ASFA's specific definitions of a modest and comfortable retirement here.
How much is the pension?
The pension will rise, as will the value of assets you can own and the income you can earn while still qualifying for it, on 20 September.
Single pensioners will receive an extra $29.70 per fortnight, and couples will receive an extra $22.40 per person in the next round of CPI updates.
This will raise the full pension, with both supplements included, to $1,178.70 per fortnight for singles and $888.50 per partner for couples.
The pension is subject to assets and income tests, and the thresholds for both tests are also going to increase.
This means more people will qualify for the pension.
