Age Pension age 66 years, if you were born between 1 January 1954 and 30 June 1955. 66 years and 6 months, if you were born between 1 July 1955 and 31 December 1956. 67 years, if you were born on or after 1 January 1957.
There's no such thing as a 'retirement age' in Australia, nor any laws that dictate when someone can retire.
Since Saturday, Australians have been required to wait until the age of 67 until they can get the age pension. The original so-called "retirement age" of 65 for men dated back to 1909. Women had their pension age lifted from 60 to 65 between 1995 and 2013.
If you're single, you'll need more than $500,000, assuming you own your own home, according to the Association of Superannuation Funds of Australia Retirement Standard.
Taking money out of superannuation doesn't affect payments from us. But what you do with the money may. For instance we'll count it in your income and assets tests if you either: use it to buy an income stream.
1 July 2023 the full pension is available, under the assets test, for homeowner singles whose assessable assets are under $301,750 – for homeowner couples the number is $451,500. The numbers for non-homeowners are $543,750 and $693,500 respectively.
The ASFA Retirement Standard Explainer says a comfortable retirement lifestyle would need $640,000 in super for a couple, or $545,000 for a single person.
Overall, retiring at 60 is doable with $500,000 but it may not be doable for you. It really depends on your personal living situation and what your potential expenses are going to be.
This obviously depends on what annual income you want to fund but if you want to be able to afford a comfortable retirement—which is an income of just over $48,000 a year for a single according to the ASFA Retirement Standard—then you need a balance of at least $500,000.
The Work Bonus income bank is useful for pensioners who wish to work, particularly those who undertake intermittent or occasional work. Note: from 1 December 2022 to 31 December 2023, a one-off, temporary credit of $4,000 applies to Work Bonus income bank balances.
The amount of money you receive from the age pension you receive depends on your age, wealth and income. It can be affected by the amount of money you have in your bank account as well as in your super fund.
Your home is not counted as an asset when calculating pension or payment, but it does affect how your pension or payment is assessed under the assets test. If you are a homeowner your asset value limit is lower than someone who does not own their residence.
Around 1.6 million NSW households and 320,000 small businesses are eligible for a new National Energy Bill Relief payment in financial year 2023-24. Eligible low-income households, pensioners, self-funded retirees, families and carers will receive a one-off $500 bill relief payment towards their electricity bills.
It is your responsibility to update Centrelink if there are changes in your assets or income. Many people believe Centrelink has access to your bank account and will take it into consideration for your payment rate. This isn't true. Centrelink can't access your bank accounts to determine up to date figures.
Tax Returns for Aged Pensioners
If your only source of income is the aged pension, it is compulsory for you to lodge a tax return each year. This applies is Centrelink is withholding tax from the aged pension. This information will be included in your PAYG summary, indicating the amount of tax withheld.
If you are aged over 65 you are not required to access your Super Benefit as either a Pension or a Lump Sum withdrawal. The choice is entirely yours.
You can withdraw your super: when you turn 65 (even if you haven't retired) when you reach preservation age and retire, or. under the transition to retirement rules, while continuing to work.
Retirement rules for accessing super
Under 60: you must have finished working and have no intention of working again. 60-64: when you leave or stop working for an employer. 65: you can access all your super, even if you're still working.
Assume, for example, you will need 65 per cent of your pre-retirement income, so if you earn $50,000 now, you might need $32,500 in retirement.
Many people start using their super savings as soon as they retire and can access their super, but you don't have to. If you have other income sources or savings to live on, you could leave your savings in your super account. This means your money stays invested and could continue to benefit from investment returns.
There is no simple answer, it depends on individual circumstances. For example, if you were under pensionable age, and your partner was of pensionable age, it may make sense to leave your superannuation in accumulation mode, which doesn't count for Centrelink purposes until you reach pensionable age.