Are you wondering when most Australians retire and how the rules have changed? You’re not alone. With life expectancy increasing and the cost of living rising, retirement planning has become more complex than ever before.
In this guide, we’ll explore the latest statistics on retirement ages for both men and women, break down the key policy updates for 2025, and provide you with actionable insights to help you plan your retirement journey with confidence. Let’s dive into what the numbers reveal and what they mean for your future.
Average Retirement Age in Australia: 2025 Policy Updates
Australians are retiring later than ever before, with recent data revealing a significant shift in retirement patterns across the country. Understanding the current retirement landscape, including the differences between men and women, and staying informed about policy updates is crucial for anyone planning their retirement journey.
Gone are the days when workers clocked out at 55 and spent decades in leisure. Today’s reality looks quite different, with Australians working longer and navigating an increasingly intricate web of superannuation rules, pension eligibility requirements, and policy changes.
Whether you’re in your 30s just starting to think about your future, approaching your 50s and getting serious about retirement planning, or already in your 60s and finalizing your exit strategy, understanding the current retirement age trends is essential. The decisions you make today will directly impact your financial security for potentially 20 to 30 years in retirement.
Current Average Retirement Age: The Latest Statistics
According to the Australian Bureau of Statistics’ latest Retirement and Retirement Intentions survey, the average retirement age in Australia has risen to 63.8 years in the 2024-25 financial year. This represents a substantial increase from previous generations, reflecting a broader trend of extended working lives.
Gender Differences in Retirement Age
The data reveals notable differences between men and women when it comes to retirement timing:
Men retire at an average age of 64.9 years, while women retire earlier at an average of 62.7 years. This gap of approximately two years has remained relatively consistent over time, with women typically leaving the workforce sooner than their male counterparts.
For context, when considering all retired Australians aged 45 and over, the overall average retirement age is 57.3 years, with men averaging 60 years and women 55.2 years. This lower figure accounts for people who retired in earlier years when retirement ages were generally younger.
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The Rising Retirement Age Trend
The upward trend in retirement age is unmistakable. Over the past two decades, the average retirement age has climbed from 53.5 years in 2000 to the current 63.8 years. This represents an increase of more than 10 years within a single generation.
Several factors are driving this significant shift:
- Improved health outcomes allowing Australians to work longer
- Greater workforce flexibility enabling gradual transitions into retirement
- Higher education levels leading to less physically demanding work
- Financial considerations as the cost of living continues to rise
- Changes to superannuation access rules and pension eligibility ages
The workforce participation rate for those aged 65 and over has more than doubled in the 20 years from 2001, increasing from 6% to 15% by 2021.
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What About Future Retirement Plans?
Looking ahead, current workers are planning to retire even later. The survey found that Australians intend to retire at an average age of 65.6 years, up from 65.4 years in 2023. However, plans don’t always align with reality.
In 2024-25, approximately 13% of retirees left their last job due to sickness, injury, or disability at an average age of 56.9 years. Another 6% retired because they were retrenched, dismissed, or 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.
Understanding Australia’s Retirement Age Framework
Australia has two key retirement ages that significantly impact when most people can retire:
1. Preservation Age (Age 60)
The preservation age is the earliest age at which you can access your superannuation savings. Since July 1, 2024, the preservation age has been standardized at 60 years for all Australians, regardless of birth date. This milestone simplifies the retirement planning process considerably.
Key Points About Preservation Age:
- You must meet a “condition of release” to access your super at preservation age
- Once you turn 60, your superannuation benefits (lump sum withdrawals and pension payments) are generally tax-free
- You can start a transition-to-retirement income stream at this age while continuing to work
- At age 65, you can access all your superannuation benefits whether or not you’ve retired
2. Age Pension Eligibility Age (Age 67)
The Age Pension eligibility age is currently set at 67 years for anyone born on or after January 1, 1957. This is the age at which you can access Australia’s Age Pension, provided you meet eligibility criteria including residency, income, and assets tests.
Major Policy Updates for 2025
Age Pension Rate Increases
The Age Pension continues to be indexed twice yearly (in March and September) to keep pace with inflation and the cost of living. As of September 2025, the maximum full Age Pension rates are:
- Single pensioner: $1,178.70 per fortnight (approximately $30,646 annually)
- Couple (combined): $1,777.00 per fortnight (approximately $46,202 annually)
- Couple separated due to illness: Each receives the single rate
These rates include the pension supplement and energy supplement. The March 2025 increase provided single pensioners with an additional $4.60 per fortnight, while couples received $7.00 combined.
Over the past three years, single pensioners have received more than $3,913 additional per year as a result of regular indexation increases.
Income and Assets Test Thresholds
The Age Pension is subject to both income and assets tests, with the test that results in the lower pension amount applying to your situation.
Current Assets Test Thresholds (as of September 2025):
- Single homeowner: $321,500 in assets (excluding home)
- Single non-homeowner: $579,500 in assets
- Couple homeowners: $481,500 in assets
- Couple non-homeowners: $739,500 in assets
Income Test Thresholds:
- Single pensioners can earn $218 per fortnight
- Couples can earn $380 combined per fortnight
Amounts above these thresholds reduce your pension payment.
Work Bonus Expansion
To encourage workforce participation among older Australians, pensioners can now earn up to $300 per fortnight without affecting their pension entitlement through the Work Bonus scheme. Each new Age Pension recipient starts with a “Work Bank” allocation of $4,000, with unused portions accumulating up to a maximum of $11,800.
Superannuation Guarantee Rate Increase
The Superannuation Guarantee (SG) rate is set to increase to 12% on July 1, 2025, up from the current 11.5%. This change means employers will be required to contribute 12% of an employee’s ordinary time earnings into their superannuation fund, providing a significant boost to retirement savings.
This increase could add an extra $80,000 to $100,000 to an average worker’s lifetime retirement savings over a 40-year career.
What Drives the Decision to Retire?
Understanding what motivates Australians to retire can help you plan your own retirement timeline. According to the latest data:
Top Reasons for Retirement:
- Access to financial support (31% of respondents) – including reaching Age Pension eligibility
- Reaching desired retirement age or eligible for superannuation
- Health issues – sickness, injury, or disability
- Employment challenges – retrenchment or inability to find work
- Caregiving responsibilities – looking after ill, disabled, or elderly family members
Financial security remains the main factor influencing retirement timing decisions for those who intend to retire.
Industry-Specific Retirement Ages
Retirement age intentions vary significantly across different industries:
Latest Intended Retirement Ages:
- Agriculture, forestry, and fishing: 68.3 years
- Real estate: 67.1 years
- Manufacturing: 66.1 years
- Mining: 63.7 years (earliest)
- Information media and telecommunications: 64 years
- Financial and insurance services: 64.3 years
Superannuation Balances at Retirement
According to the Australian Taxation Office, the average superannuation balance for Australians aged 65 to 69 years is $428,738, with a median balance of $207,540.
Gender Breakdown:
- Average balance for men: $453,075 (median: $213,986)
- Average balance for women: $403,038 (median: $201,233)
Women continue to retire with lower superannuation balances than men, partly due to career breaks for caregiving, lower average earnings, and earlier retirement ages.
Planning for Your Retirement
With Australians living longer than ever—with life expectancy averaging 85 years for women and 81 years for men—your retirement savings may need to last up to 30 years or more.
Essential Planning Steps:
- Calculate your retirement needs – Consider your desired lifestyle, travel plans, healthcare costs, and daily expenses
- Check your superannuation balance – Ensure you’re on track to meet your retirement goals
- Understand your Age Pension eligibility – Many Australians miss out on benefits they’re entitled to
- Consider your preservation age – Plan when you want to access your super
- Review your investment strategy – Adjust your super allocation as retirement approaches
- Account for unexpected events – Health issues or employment challenges may force earlier retirement
- Seek professional advice – A financial adviser can help optimize your retirement strategy
Changes to Superannuation Sources
Between 2014-15 and 2024-25, there’s been a notable shift in retirees’ main sources of income. The proportion of retired people with superannuation as their main source of income increased from 20% to 28%. Despite this growth, the Government pension remains the most common source of income for retirees, with 30% of retired women relying on their partner’s income to meet their living costs at retirement (compared to just 9% of retired men).
October 2025 Comprehensive Review
The federal government has scheduled a major policy evaluation for October 2025 to assess the long-term sustainability of the Age Pension framework. This comprehensive review will likely examine:
- Indexation methods to ensure payments keep pace with inflation
- Eligibility age requirements
- Means testing rules for income and assets
- Integration of Age Pension with superannuation frameworks
- Regional cost-of-living adjustments
While changes may be introduced following this review, Age Pension payments will continue throughout 2025 and beyond under the existing structure. The Age Pension remains one of Australia’s most stable and essential programs, currently supporting over 2.6 million Australians.
At A Glance
- The average retirement age in Australia has risen to 63.8 years, with men retiring at 64.9 and women at 62.7
- Preservation age is now standardized at 60 years for all Australians
- Age Pension eligibility age remains at 67 years
- Regular pension indexation increases help keep pace with cost-of-living pressures
- The Superannuation Guarantee rate will increase to 12% from July 2025
- Future workers intend to retire at 65.6 years on average
- Health, employment challenges, and caregiving responsibilities often lead to earlier-than-planned retirement
The retirement landscape in Australia continues to evolve, with Australians working longer than previous generations while navigating complex superannuation and pension systems. Staying informed about policy changes and planning early are essential steps toward achieving a comfortable and financially secure retirement.
Whether you’re decades away from retirement or approaching your preservation age, understanding these trends and policies will help you make informed decisions about your financial future. Consider consulting with a financial adviser to create a personalized retirement strategy that aligns with your goals and circumstances.
Note: This article is based on the latest data from the Australian Bureau of Statistics, Services Australia, and other authoritative government sources as of November 2025. Retirement planning involves complex financial decisions, and readers should seek professional financial advice tailored to their individual circumstances.
