Retiring at 65? Your super simple guide to 12 common questions

Once you reach age 65 it’s easy to access your super benefits.

In the super world, getting to 65 is a condition of release and you can access your super without having to cease work.

Once you decide to apply to access your super benefit, you can generally choose to withdraw an amount from your super as an income stream, lump sum or a combination of the two.

2. Can I access my super at 65 and still work?

You can access your super when you turn 65 regardless of whether you are still working or not. Turning age 65 is a condition of release itself, so whether you are working or not doesn’t matter.

The super rules also allow you to leave your retirement savings in your super account until a later date if you want.

3. Can I still make contributions into my super if I retire at 65?

The super rules still allow you to make voluntary contributions into your super account up until you turn age 75, provided you pass the work test. Under the work test rules, you must have been ‘gainfully employed’ for at least 40 hours in 30 consecutive days during 2020-21 if you wish to make personal super contributions.

Once you reach age 75, you will not be able to make voluntary non-concessional contributions, regardless of your work status. You can only claim a tax deduction for any super contributions you made before the 28th day of the month following the month in which you turned 75

If you are aged 65 and over and not able to meet the work test, you can still make downsizer contributions (up to $300,000 per person in 2020-21) if you sell your main residence.

4. What are the options for withdrawing my super benefit?

When you withdraw your super savings at retirement, you can choose to take either a lump sum or an income stream:

• Income stream (super pension or annuity) – If you decide to take a super income stream, you will receive a series of regular payments from your super fund. These must be paid at least annually and must meet minimum annual payment rules.
• Lump sum – This is a single payment that withdraws some or all of your super. If you take a lump sum the money is no longer within the super system and if you invest it, any return received on the money will not be taxed as super savings. This means the concessional tax rate of 15% on your super account’s investment earnings will no longer apply. Instead, your investment returns will be taxed at your marginal tax rate, which could be as high as 45% (plus the Medicare levy).

5. What are the tax implications of retiring at 65?

Super withdrawals after age 60 are generally tax free.

If you are aged 65 and decide to take a lump sum, all your lump sum benefits are tax free.

If you are aged 65 and decide to take a super pension, all your pension payments are tax free UNLESS you are a member of a small number of defined benefit super funds, or you receive a defined benefit pension over a certain limit. In these two situations, you will pay some tax on your super pension, but this generally only affects public servants.

These two exceptions only affect people who choose to take a super pension AND are:

• Members of an untaxed super scheme (usually a public sector fund)
• Receiving a private or public defined benefit pension of more than $100,000 a year (in 2020-21).

6. What is the average super account balance for Australians at age 65?

According to Association of Superannuation Funds of Australia research, in 2016-17 (the latest available data) the average super account balance for males aged 65 to 69 was $392,805, while for females the average was a bit lower at $349,947.

Unsurprisingly, the average balance for those on higher incomes tends to be higher. In 2016-17, the average super balance for a male aged 65 to 69 in the $180,000 plus tax bracket was $1,637,060. For females, the average was slightly higher at $1,834,578.

For Aussies aged 65 to 69 in the $37,001 to $87,000 tax bracket, the averages were $361,243 for males and with females at $372,722.

Average and median super account balance 2016-17

	Average super account balance	Median* super account balance
Males (age 65­–69)	$392,805	$172,914
Females (age 65–69)	$349,947	$165,857

* Median super account balance is the balance at which 50% of individuals have a lower account balance and 50% have a higher account balance.

7. What is my life expectancy at age 65?

Life expectancy is a statistical measure that estimates how long a typical person of a specific age and sex is likely to live. It’s based on your year of birth and gender, but does not consider your circumstances, such as your personal health, family history, diet or lifestyle.

That means it’s an estimate of how long a typical person is likely to live, not a prediction of how long you will live.

The estimates below are an average life expectancy for someone age 65 based on national statistics, without taking into account any personal factors such as your health or family history.

Estimated life expectancy at age 65

	Expected remaining years of life	Life expectancy
Male	19 years and 10 months	84 years and 10 months
Female	22 years and 5 months	87 years and 5 months

Source: 2015–17 Australian Life Tables, Australian Government Actuary

8. Can I get the Age Pension if I retire at 65?

To be eligible for the Age Pension, you must have reached the current Age Pension eligibility age, which from 1 July 2021 is 66 years and 6 months, rising to 67 from 1 July 2023.

In addition to the age requirement, whether you are eligible for an Age Pension depends on you being able to satisfy the Age Pension assets test, income test and residency requirements.

9. Can I get a health card if I retire at 65?

If you retire at age 65, unfortunately, you are ineligible for the Commonwealth Seniors Health Card (CSHC). This concession card gives you access to cheaper health care, medications, and, potentially, government services.

To qualify for a CSHC, you must have reached your Age Pension eligibility age, which depends on your date of birth (see table above). This is progressively being increased to age 67 from 1 July 2023.

10. Can I get a state Seniors Card if I retire at 65?

Congratulations, if you retire at age 65 you are eligible for a state Seniors Card in the state or territory where you live.

Briefly, the eligibility requirements in each state and territory in relation to your age are:

State	Eligible age for Seniors Card
Australian Capital Territory	62 or over (From July 2020 eligibility age will be lowered to 60)
NSW	60 or over
Northern Territory	60 or over
Queensland	60 or over with government concession card
Tasmania	60 or over
Victoria	60 or over
Western Australia	63 or over

  Note: Residency and work test rules also apply when you apply for a Seniors Card.

11. Can I start a transition to retirement income stream at 65?

A transition to retirement (TTR or TRIS) is a pension income stream from your super account you draw down on while you are still working. It can be a way to scale back your working hours and start enjoying your retirement.

If you’re aged 65 and over, there are no restrictions on the amount of super you can withdraw even if you’re still working, so rather than set up a TTR pension, you can start a normal super pension.

12. How much super do I need to retire at 65?

When you retire at 65, you could be spending 20 or 25 years in retirement, so you’ll need to create a retirement income stream that lasts that long.

The amount of super you will need to fund your retirement lifestyle from age 65 depends on many factors.

To help you get started working out how much super you will need if you retire at 65, we have put together tables for both couples and singles using figures generated from ASIC’s MoneySmart retirement planner calculator.

There are six different scenarios showing the income generated from different super balances ranging from $500,000 at retirement through to $3.2 million (combined for a couple).

If you want to calculate a figure using your own circumstances, try SuperGuide’s Super to income reckoner, which has nearly 9,000 options you can use.

Scenario 1: Income generated from a $500,000 retirement super balance transferred into a super pension account

Couple: Retiring at 65

Money lasting until age	Eligible for Age Pension?	Return on savings
		2%	3%	4%	5%	6%	7%	8%
85	Yes	$55,239	$57,267	$59,363	$61,640	$63,961	$66,395	$68,953
	No	$20,680	$22,950	$25,355	$27,857	$30,618	$33,426	$36,353
90	Yes	$51,190	$53,063	$55,160	$57,380	$59,757	$62,224	$64,772
	No	$16,333	$18,454	$20,856	$23,465	$26,251	$29,164	$32,252
95	Yes	$48,582	$50,274	$52,263	$54,495	$56,861	$59,352	$61,946
	No	$13,501	$15,424	$65,597	$20,403	$23,321	$26,369	$29,563
100	Yes	$46,805	$48,331	$50,163	$52,307	$54,723	$57,215	$59,809
	No	$11,547	$13,267	$15,372	$17,963	$21,113	$24,410	$27,381

* Assumptions for the calculations in the tables are listed at the end of the article.

Single: Retiring at 65

Money lasting until age	Eligible for Age Pension?	Return on savings
		2%	3%	4%	5%	6%	7%	8%
85	Yes	$40,953	$42,657	$44,466	$46,359	$48,408	$50,503	$52,693
	No	$20,660	$22,951	$25,368	$27,892	$30,584	$33,427	$36,358
90	Yes	$36,895	$38,450	$40,175	$42,036	$43,961	$45,980	$48,168
	No	$16,327	$18,449	$20,856	$23,473	$26,224	$29,154	$32,251
95	Yes	$34,162	$35,690	$37,327	$39,060	$40,940	$42,929	$45,041
	No	$13,492	$15,423	$17,728	$20,404	$23,321	$26,378	$29,575
100	Yes	$32,311	$33,541	$35,131	$36,886	$38,700	$40,651	$42,657
	No	$11,549	$13,269	$15,373	$17,968	$21,112	$24,392	$27,755

* Assumptions for the calculations in the tables are listed at the end of the article.

Scenario 2: Income generated from a $750,000 retirement super balance transferred into a super pension account

Couple: Retiring at 65

Money lasting until age	Eligible for Age Pension?	Return on savings
		2%	3%	4%	5%	6%	7%	8%
85	Yes	$61,962	$64,598	$67,351	$70,258	$73,281	$76,470	$79,753
	No	$31,009	$34,426	$38,054	$41,867	$45,927	$50,148	$54,540
90	Yes	$55,835	$58,284	$60,921	$63,705	$66,651	$69,761	$73,034
	No	$24,500	$27,640	$31,277	$35,178	$39,372	$43,761	$48,341
95	Yes	$51,726	$54,073	$56,592	$59,255	$62,073	$65,139	$68,352
	No	$20,256	$23,146	$26,590	$30,601	$34,975	$39,562	$44,361
100	Yes	$48,993	$50,845	$53,257	$55,945	$58,745	$61,734	$64,851
	No	$17,324	$19,902	$23,060	$26,955	$31,678	$36,599	$41,633

* Assumptions for the calculations in the tables are listed at the end of the article.

Single: Retiring at 65

Money lasting until age	Eligible for Age Pension?	Return on savings
		2%	3%	4%	5%	6%	7%	8%
85	Yes	$46,744	$49,127	$51,637	$54,332	$57,260	$60,285	$63,568
	No	$31,018	$34,426	$38,054	$41,894	$45,887	$50,148	$54,538
90	Yes	$40,808	$42,880	$45,255	$47,783	$50,457	$53,464	$56,717
	No	$24,496	$27,681	$31,277	$35,187	$39,362	$43,752	$48,358
95	Yes	$36,892	$38,903	$41,027	$43,361	$45,951	$48,773	$52,000
	No	$20,259	$23,134	$26,593	$30,600	$34,994	$39,558	$44,322
100	Yes	$34,136	$35,895	$37,938	$40,181	$42,648	$45,420	$48,542
	No	$17,333	$19,903	$23,061	$26,954	$31,676	$36,621	$41,631

* Assumptions for the calculations in the tables are listed at the end of the article.

Scenario 3: Income generated from a $1 million retirement super balance transferred into a super pension account

Couple: Retiring at 65

Money lasting until age	Eligible for Age Pension?	Return on savings
		2%	3%	4%	5%	6%	7%	8%
85	Yes	$67,654	$70,831	$74,241	$77,833	$81,652	$85,691	$89,867
	No	$41,370	$45,885	$50,746	$55,858	$61,238	$66,863	$72,716
90	Yes	$59,654	$62,578	$65,756	$69,152	$72,740	$76,629	$80,771
	No	$32,662	$36,908	$41,709	$46,960	$52,494	$58,356	$64,495
95	Yes	$54,462	$57,164	$60,126	$63,269	$66,724	$70,420	$74,481
	No	$27,014	$30,862	$35,457	$40,792	$46,668	$52,752	$59,168
100	Yes	$50,597	$53,088	$55,908	$59,013	$62,330	$65,868	$69,766
	No	$23,110	$26,539	$30,747	$35,938	$42,234	$48,819	$55,503

* Assumptions for the calculations in the tables are listed at the end of the article.

Single: Retiring at 65

Money lasting until age	Eligible for Age Pension?	Return on savings
		2%	3%	4%	5%	6%	7%	8%
85	Yes	$53,614	$56,948	$60,550	$64,485	$68,718	$73,264	$78,172
	No	$41,371	$45,888	$50,746	$55,854	$61,240	$66,852	$72,659
90	Yes	$45,547	$48,529	$51,854	$55,569	$59,718	$64,251	$69,256
	No	$32,664	$36,909	$41,685	$46,962	$52,505	$58,356	$64,486
95	Yes	$40,464	$43,064	$46,054	$49,557	$53,550	$58,137	$63,264
	No	$27,010	$30,862	$35,453	$40,794	$46,667	$52,754	$59,168
100	Yes	$37,049	$39,298	$42,015	$45,222	$49,078	$53,687	$58,973
	No	$23,112	$26,539	$30,747	$35,938	$42,234	$48,819	$55,453

* Assumptions for the calculations in the tables are listed at the end of the article.

Scenario 4: Income generated from a $1.6 million retirement super balance transferred into a super pension account

Couple: Retiring at 65

Money lasting until age	Eligible for Age Pension?	Return on savings
		2%	3%	4%	5%	6%	7%	8%
85	Yes	$83,942	$89,354	$95,264	$101,652	$108,541	$116,032	$123,994
	No	$66,191	$73,442	$81,171	$89,363	$97,959	$106,961	$116,352
90	Yes	$70,948	$75,829	$81,264	$87,368	$94,142	$101,642	$109,841
	No	$52,245	$59,053	$66,735	$75,137	$84,006	$93,381	$103,210
95	Yes	$62,892	$67,015	$71,927	$77,682	$84,285	$91,854	$100,326
	No	$43,220	$49,377	$56,731	$65,288	$74,617	$84,402	$94,658
100	Yes	$57,372	$61,079	$65,465	$70,753	$77,183	$84,849	$93,588
	No	$36,974	$42,456	$49,197	$57,500	$67,578	$78,129	$88,771

* Assumptions for the calculations in the tables are listed at the end of the article.

Single: Retiring at 65

Money lasting until age	Eligible for Age Pension?	Return on savings
		2%	3%	4%	5%	6%	7%	8%
85	Yes	$73,592	$79,780	$86,519	$93,809	$101,659	$109,972	$118,849
	No	$66,191	$73,403	$81,158	$89,374	$97,967	$106,964	$116,352
90	Yes	$60,323	$65,781	$72,218	$79,442	$87,358	$96,019	$105,261
	No	$52,263	$59,053	$66,730	$75,088	$83,954	$93,355	$103,164
95	Yes	$52,152	$56,794	$62,603	$69,651	$77,753	$86,687	$96,350
	No	$43,220	$49,378	$56,731	$65,295	$74,663	$84,403	$94,653
100	Yes	$46,773	$50,776	$55,839	$62,470	$70,723	$80,063	$90,154
	No	$36,975	$42,462	$49,197	$57,491	$67,577	$78,139	$88,813

* Assumptions for the calculations in the tables are listed at the end of the article.

Scenario 5: Income generated from a $2 million retirement super balance transferred into a super pension account

Couple: Retiring at 65

Money lasting until age	Eligible for Age Pension?	Return on savings
		2%	3%	4%	5%	6%	7%	8%
85	Yes	$96,820	$104,114	$112,053	$120,687	$130,029	$140,053	$150,664
	No	$82,737	$91,790	$101,489	$111,725	$122,459	$133,724	$145,442
90	Yes	$80,365	$86,830	$94,300	$102,721	$112,088	$122,362	$133,432
	No	$65,334	$73,816	$83,415	$93,880	$105,011	$116,725	$128,983
95	Yes	$70,299	$75,776	$82,454	$90,514	$99,855	$110,449	$121,959
	No	$54,029	$61,716	$70,915	$81,616	$93,314	$105,515	$118,285
100	Yes	$63,579	$68,334	$74,141	$81,694	$91,115	$101,956	$114,004
	No	$46,227	$53,077	$61,497	$71,880	$84,472	$97,645	$111,040

* Assumptions for the calculations in the tables are listed at the end of the article.

Single: Retiring at 65

Money lasting until age	Eligible for Age Pension?	Return on savings
		2%	3%	4%	5%	6%	7%	8%
85	Yes	$86,461	$93,873	$102,056	$111,006	$120,704	$131,044	$141,957
	No	$80,254	$88,550	$97,561	$107,268	$117,649	$128,564	$139,992
90	Yes	$68,770	$75,362	$83,150	$92,123	$102,056	$112,915	$124,539
	No	$61,699	$69,313	$78,202	$88,203	$99,066	$110,654	$122,833
95	Yes	$57,575	$63,000	$69,957	$78,603	$88,869	$100,434	$112,852
	No	$49,574	$56,114	$64,184	$74,035	$85,718	$98,290	$111,350
100	Yes	$50,102	$54,597	$60,352	$67,985	$78,140	$90,806	$104,370
	No	$41,308	$46,878	$53,782	$62,492	$73,911	$88,345	$103,158

• Assumptions for the calculations in the tables are listed at the end of the article.

Scenario 6: Income generated from a $3.2 million retirement super balance transferred into a super pension account

Since 1 July 2017 there has been a $1.6 million limit on the amount you can transfer into a super account in pension phase. The $1.6 million transfer balance cap applies to individuals, which means a couple could have up to $3.2 million in individual accounts.

Couple: Retiring at 65

Money lasting until age	Eligible for Age Pension?	Return on savings
		2%	3%	4%	5%	6%	7%	8%
85	Yes	$140,468	$153,579	$167,963	$183,369	$199,719	$216,974	$235,124
	No	$132,385	$146,883	$162,379	$178,760	$195,953	$213,957	$232,692
90	Yes	$113,563	$125,385	$139,182	$154,660	$171,451	$189,376	$208,443
	No	$104,516	$118,095	$133,438	$150,276	$168,025	$186,764	$206,429
95	Yes	$96,703	$106,973	$119,632	$135,021	$152,377	$171,076	$190,967
	No	$86,446	$98,735	$113,465	$130,592	$149,055	$168,834	$189,361
100	Yes	$85,874	$94,629	$105,836	$120,308	$138,323	$158,173	$178,955
	No	$73,962	$84,924	$98,395	$115,003	$135,150	$156,291	$177,586