Average age of retirement rises to 64 years

The average age at which Australia's 4.5 million retirees quit work is 57, but those who retired in FY25 were much older.

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Key points

  • The average age of retirement in Australia rose to 63.8 years in FY25, with men retiring at 64.9 years and women at 62.7 years, reflecting a trend of retiring later than previous generations.
  • Current workers intend to retire at an average age of 65.6 years, though health and employment issues are likely to lead some to retire earlier, highlighting the unpredictability of retirement planning.
  • Australians qualify for the age pension between ages 65 and 67, with payment amounts and eligibility determined by an asset and income test, providing full pensions for those meeting the lower thresholds.

The average age of the 156,000 Australians who entered retirement in FY25 was 63.8 years, according to new figures.

This is substantially higher than the average age at which all Australians who are retired hung up their boots — 57.3 years.

Yesterday, the Australian Bureau of Statistics (ABS) released its two-yearly Retirement and Retirement Intentions survey.

The survey found an ongoing trend in Australians retiring later in life than their predecessors.

The ABS said the average age at retirement increased for both men and women in Australia in FY25:

For men, the average age was 64.9 years and for women the average age was 62.7 years. 

Australian workers are also planning to retire later in life.

The ABS survey found that current workers intend to retire at an average age of 65.6 years, up slightly from 65.4 years in FY23.

However, sometimes things don't go to plan.

The survey found that in FY25, 13% of retirees quit their last job due to sickness, injury or disability at an average age of 56.9 years.

Another 6% retired due to being retrenched, dismissed, or being unable to find work at an average age of 58.8 years.

Just over 3% retired to care for an ill, disabled, or elderly person at an average age of 59 years.

The top reason for retirement in FY25 was reaching the superannuation preservation age or the pension age at 33%.

At preservation age, Australians who are retired can gain full access to their superannuation savings.

Those who don't want to retire have the option of setting up a transition-to-retirement (TTR) income stream to access some of their superannuation from preservation age.

When can you get the age pension?

Australians become eligible for the age pension at between 65 and 67 years of age, depending on their date of birth.

For those born on or after 1 January 1957, the pension age is 67 years.

The full pension payment is currently $1,178.70 per fortnight for singles and $1,777 per fortnight for couples.

The pension is subject to an asset test and an income test.

If you own assets or earn wages below the lower thresholds, you will qualify for a full pension.

Single homeowners can own $321,500 in assets outside their home and still qualify for the full pension.

Single non-homeowners can own $579,500 in assets outside their home.

Couple homeowners can have $481,500 in assets and non-homeowners can have $739,500 in assets and still get the full pension.

As for the income test, single Australians can earn $218 per fortnight and couples $380 combined per fortnight and get the full pension.

If you own more or earn more than these thresholds, you may qualify for a part pension.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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