Retirement age and when you can retire
21 January 2020
Knowing at what age you can retire will help you to plan ahead. BUSSQ can help you make sure that your retirement plans are bang on track.
When can you retire?
It is your choice when to retire but there are a few things you should consider before deciding. If you can fund your own retirement you may decide to retire early. Factors which may impact your decision include:
• Preservation Age – when can you access your super?
• Triggers of release – what needs to happen before you can access your super?
• Government Age Pension – when you can apply for the Government Age Pension?
When can you access your super?
You can access your super:
• When you reach preservation age and retire
• Over the age of 60 and cease any employment arrangement
• When you turn 65, or
• Under the transition to retirement rules (if you are eligible), while continuing to work.
Preservation Age
In order to access your super to set up a BUSSQ Income account you must have reached the minimum age required by law, which depends on when you were born. This is referred to as your ‘preservation’ age which can be anywhere between ages 55 and 60. This table shows the minimum age that will apply to you.
| If you were born: | You can access your Super at age: |
|---|---|
| Before 1 July 1960 | 55 |
| 1 July 1960 - 30 June 1961 | 56 |
| 1 July 1961 - 30 June 1962 | 57 |
| 1 July 1962 - 30 June 1963 | 58 |
| 1 July 1963 - 30 June 1964 | 59 |
| From 1 July 1964 | 60 |
Triggers of Release
Further to the above table, you should be aware of triggers of release – this is the working status that you need to meet in order to access your super.
| Preservation age | You must be permanently retired to access your super: |
|---|---|
| 60 | If you have reached 60 and have left a job, you can access your super. |
| 65 | Working or not, turning 65 allows you to access your super. |
When can you apply for the Government Age Pension?
Currently you must be aged 65 or over to be eligible to apply for the age pension. From 1 July 2017, the minimum pension for both men and women will progressively increase. By 1 July 2023, the minimum age will have increased to 67. Proposals are in place to further increase the pension age to 70 – see the table below for current ages and the proposed ages.
| If you were born before between: | You are eligible for Age Pension at age: |
|---|---|
| 1 July 1952 and 31 December 1953 | 65½ |
| 1 January 1954 and 30 June 1955 | 66 |
| 1 July 1955 and 31 December 1956 | 66½ |
| 1 January 1957 and later | 67 |
For more information on the Government Age Pension visit www.humanservices.gov.au or https://www.dss.gov.au/seniors/benefits-payments/age-pension
Once you have looked at both Preservation Age and Retirement Age you should also consider how much money you will need to fund your retirement.