- Home
- What's...
What's the average age of retirement in Australia?
The average age at retirement among Australia's existing 4.2 million retirees in FY23 was 56.9 years, according to new figures from the Australian Bureau of Statistics (ABS).
However, the average age at which most people intend to hang up their boots is 65.4 years.
If we dig a little deeper, we find that the average age at which people intend to retire differs between industries.
Let's find out more.
Average age of retirement in Australia
The ABS Retirement and Retirement Intentions report reveals that 130,000 people retired in 2022.
The average age of those 130,000 new retirees was 64.8 years. For men, the average age was higher at 66.9 years. For women, it was lower at 63.2 years.
Women typically take up retirement sooner than men, however it seems they are doing so a bit later now.
In FY21, the average age of the entire female retiree community was 54 years. This had increased to 54.7 years by FY23.
Men are also retiring a bit later. The average age of all male retirees in FY21 was 59.3 years, and in FY23, it was 59.4 years.
Top 3 reasons for retirement
Over the next five years, 710,000 Australians intend to retire, and 226,000 intend to do so over the next two years.
Australians' motivations for retirement differ, and two of the three top reasons are beyond their control.
The most common reason for choosing retirement was access to financial support (31% of respondents).
This includes reaching retirement age, which is the age at which Australians are eligible to receive the age pension. Currently, it's 67 years old. Either that or becoming eligible to access their superannuation (i.e., reaching or being older than their preservation age).
Preservation ages vary depending on when a person was born. For those born after 30 June 1964, it's 60 years.
Currently, the age pension is the main income source for most Australians in retirement. Superannuation is the second most common main income source.
Bjorn Jarvis, ABS head of labour statistics said:
In 2022-23, a Government pension or allowance was still the main source of personal income at retirement for 43 per cent of retirees. This was followed by Superannuation, an annuity or private pension at 27 per cent.
The second most common reason for retirement was sickness, injury or disability (13% of respondents).
The third most common was being retrenched, dismissed or not being able to find employment (5%).
Other reasons included to care for an ill, disabled or elderly person (4% of women and 3% of men).
How does the average age of retirement vary across industries?
People working in agriculture, forestry and fishing have the highest intended age of retirement of 68.3 years. This is followed by those working in real estate at 67.1 years and manufacturing at 66.1 years.
At the other end of the scale, mining workers have the earliest intended age of retirement at 63.7 years.
Information media and telecommunications workers are next at 64 years, then financial and insurance services workers at 64.3 years.
Average superannuation balance at retirement
The average superannuation balance of Australians aged 65 to 69 years is $428,738, according to the Australian Taxation Office. The median balance is $207,540.
The average superannuation balance for men is $453,075 and the average for women is $403,038. The median for men is $213,986 and the median for women is $201,233.
According to the AFSA Retirement Standard, these amounts plus a part pension are more than enough to fund a modest retirement lifestyle for homeowners.
ASFA defines a modest lifestyle as having money for daily essentials, basic health cover, and occasional leisure activities.
To fund a modest lifestyle, both singles and couples need $100,000 in superannuation at age 67, plus a part-pension, to cover annual living expenses of $46,944 for couples and $32,666 for singles.
The post What's the average age of retirement in Australia? appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...
See The 5 Stocks*Returns as of 5 May 2024
More reading
- 'All-growth' superannuation funds return nearly 10% in 10 months
- 2 no-brainer ASX 200 shares to buy next week
- Here's how the ASX 200 market sectors stacked up last week
- Are AMP shares a significantly underrated buy right now?
- Analysts say these small cap ASX shares can deliver big returns
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.
- https://www.msn.com/en-au/lifestyle/misc/what-s-the-average-age-of-retirement-in-australia/ar-BB1n5knZ?ocid=00000000
Related
Ladies! Try these 17 upper arm exercises for stronger, toner arms
What are the best arm exercises for women? We have them all, plus a plan to have you feeling stronger in a few short weeks. The post Ladies! Try these 17 upper arm exercises for stronger, toner arms appeared first on Reader's Digest Australia.
Lifestyle26 powerful quotes that capture the weight of depression
These quotes pinpoint the weight of emotions you can experience when depression takes hold The post 26 powerful quotes that capture the weight of depression appeared first on Reader's Digest Australia.
Lifestyle'I'm a makeup artist and these are my top 9 skincare products for over-50s.'
This article originally appeared on Adore Beauty.When we require some of the best beauty product recommendations for mature skin, we turn to award-winning makeup artist and over-forties makeup expert, Amanda Ramsay.From her Favourite Makeup Products Under $30 for Mature Skin to the Best Fake Tan For Over 40s, she is the Queen of trawling through the sea of affordable and mature ... Continued
LifestyleWhat is pocketing? Here's how to tell if it's happening to you
If the person you're dating won't introduce you to people or post about you on socials, you might be getting 'pocketed.' Here's what the viral dating trend actually means and when it might be cheating.
Lifestyle'I'm a beauty writer and swear by this $24 product for smooth, glass-like skin.'
Call me delulu but if the film Confessions of a Shopaholic taught me anything, it’s that no man will ever love or treat me as well as... my Korean skincare purchases. I turn 29 in a few months and while I thought entering another year as a single girl would be sending me into a downward spiral (and we all know high ... Continued
LifestyleCumquats: how to grow these citrus trees
Want to plant cumquats? We have everything you need to know about growing this citrus tree in Australia. Read more at the link.
Lifestyle8 things you should never say to your partner, according to a therapist.
On paper we all know there are a set of best practices we should adhere to in order to continue a harmonious and loving relationship. However, in the heat of the moment (after your partner forgets to pick up that thing you asked them to get after reminding them 97 times), all of those best practices can go flying out ... Continued
LifestyleRoyal family's powerful show of unity at Trooping the Colour balcony appearance
After a difficult six months, the royal family looked united as they stepped onto the balcony at Buckingham Palace during Trooping the Colour celebrations despite wild weather. Thankfully, the skies cleared just in time for the royal family's balcony appearance. King Charles III and Queen Camilla were joined by the Prince and Princess of Wales and their three children, Prince George, 10 Princess Charlotte, nine, and Prince Louis, six. A...
Lifestyle