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- 1. When can I access my super savings?
- 2. Can I access my super at 65 and still work?
- 3. Can I still make contributions into my super if I retire at 65?
- 4. What are the options for withdrawing my super benefit?
- 5. What are the tax implications of retiring at 65?
- 6. What is the average super account balance for Australians at age 65?
- 7. What is my life expectancy at age 65?
- 8. Can I get the Age Pension if I retire at 65?
- 9. Can I get a health card if I retire at 65?
- 10. Can I get a state Seniors Card if I retire at 65?
- 11. Can I start a transition to retirement income stream at 65?
- 12. How much super do I need to retire at 65?
For most Aussies, blowing out the birthday candles at 65 means it’s retirement time.
If that’s your plan, it’s important to ensure you understand the rules on accessing your super, how big your nest egg needs to be, the tax you might pay and any financial assistance you may be able to receive.
To help you take the leap into life after work, SuperGuide has put together a simple guide answering common questions asked by people retiring at age 65.
1. When can I access my super savings?
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 | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | 8% | |
| 85 | $55,239 | $57,267 | $59,363 | $61,640 | $63,961 | $66,395 | $68,953 |
| 90 | $51,190 | $53,063 | $55,160 | $57,380 | $59,757 | $62,224 | $64,772 |
| 95 | $48,582 | $50,274 | $52,263 | $54,495 | $56,861 | $59,352 | $61,946 |
| 100 | $46,805 | $48,331 | $50,163 | $52,307 | $54,723 | $57,215 | $59,809 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Single: Retiring at 65
| Money lasting until age | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | 8% | |
| 85 | $40,953 | $42,657 | $44,466 | $46,359 | $48,408 | $50,503 | $52,693 |
| 90 | $36,895 | $38,450 | $40,175 | $42,036 | $43,961 | $45,980 | $48,168 |
| 95 | $34,162 | $35,690 | $37,327 | $39,060 | $40,940 | $42,929 | $45,041 |
| 100 | $32,311 | $33,541 | $35,131 | $36,886 | $38,700 | $40,651 | $42,657 |
* 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 | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | 8% | |
| 85 | $61,962 | $64,598 | $67,351 | $70,258 | $73,281 | $76,470 | $79,753 |
| 90 | $55,835 | $58,284 | $60,921 | $63,705 | $66,651 | $69,761 | $73,034 |
| 95 | $51,726 | $54,073 | $56,592 | $59,255 | $62,073 | $65,139 | $68,352 |
| 100 | $48,993 | $50,845 | $53,257 | $55,945 | $58,745 | $61,734 | $64,851 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Single: Retiring at 65
| Money lasting until age | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | 8% | |
| 85 | $46,744 | $49,127 | $51,637 | $54,332 | $57,260 | $60,285 | $63,568 |
| 90 | $40,808 | $42,880 | $45,255 | $47,783 | $50,457 | $53,464 | $56,717 |
| 95 | $36,892 | $38,903 | $41,027 | $43,361 | $45,951 | $48,773 | $52,000 |
| 100 | $34,136 | $35,895 | $37,938 | $40,181 | $42,648 | $45,420 | $48,542 |
* 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 | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | 8% | |
| 85 | $67,654 | $70,831 | $74,241 | $77,833 | $81,652 | $85,691 | $89,867 |
| 90 | $59,654 | $62,578 | $65,756 | $69,152 | $72,740 | $76,629 | $80,771 |
| 95 | $54,462 | $57,164 | $60,126 | $63,269 | $66,724 | $70,420 | $74,481 |
| 100 | $50,597 | $53,088 | $55,908 | $59,013 | $62,330 | $65,868 | $69,766 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Single: Retiring at 65
| Money lasting until age | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | 8% | |
| 85 | $53,614 | $56,948 | $60,550 | $64,485 | $68,718 | $73,264 | $78,172 |
| 90 | $45,547 | $48,529 | $51,854 | $55,569 | $59,718 | $64,251 | $69,256 |
| 95 | $40,464 | $43,064 | $46,054 | $49,557 | $53,550 | $58,137 | $63,264 |
| 100 | $37,049 | $39,298 | $42,015 | $45,222 | $49,078 | $53,687 | $58,973 |
* 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 | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | 8% | |
| 85 | $83,942 | $89,354 | $95,264 | $101,652 | $108,541 | $116,032 | $123,994 |
| 90 | $70,948 | $75,829 | $81,264 | $87,368 | $94,142 | $101,642 | $109,841 |
| 95 | $62,892 | $67,015 | $71,927 | $77,682 | $84,285 | $91,854 | $100,326 |
| 100 | $57,372 | $61,079 | $65,465 | $70,753 | $77,183 | $84,849 | $93,588 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Single: Retiring at 65
| Money lasting until age | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | 8% | |
| 85 | $73,592 | $79,780 | $86,519 | $93,809 | $101,659 | $109,972 | $118,849 |
| 90 | $60,323 | $65,781 | $72,218 | $79,442 | $87,358 | $96,019 | $105,261 |
| 95 | $52,152 | $56,794 | $62,603 | $69,651 | $77,753 | $86,687 | $96,350 |
| 100 | $46,773 | $50,776 | $55,839 | $62,470 | $70,723 | $80,063 | $90,154 |
* 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 | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | 8% | |
| 85 | $96,820 | $104,114 | $112,053 | $120,687 | $130,029 | $140,053 | $150,664 |
| 90 | $80,365 | $86,830 | $94,300 | $102,721 | $112,088 | $122,362 | $133,432 |
| 95 | $70,299 | $75,776 | $82,454 | $90,514 | $99,855 | $110,449 | $121,959 |
| 100 | $63,579 | $68,334 | $74,141 | $81,694 | $91,115 | $101,956 | $114,004 |
* Assumptions for the calculations in the tables are listed at the end of the article.
Single: Retiring at 65
| Money lasting until age | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | 8% | |
| 85 | $86,461 | $93,873 | $102,056 | $111,006 | $120,704 | $131,044 | $141,957 |
| 90 | $68,770 | $75,362 | $83,150 | $92,123 | $102,056 | $112,915 | $124,539 |
| 95 | $57,575 | $63,000 | $69,957 | $78,603 | $88,869 | $100,434 | $112,852 |
| 100 | $50,102 | $54,597 | $60,352 | $67,985 | $78,140 | $90,806 | $104,370 |
* 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 | Return on savings | ||||||
|---|---|---|---|---|---|---|---|
| 2% | 3% | 4% | 5% | 6% | 7% | 8% | |
| 85 | $140,468 | $153,579 | $167,963 | $183,369 | $199,719 | $216,974 | $235,124 |
| 90 | $113,563 | $125,385 | $139,182 | $154,660 | $171,451 | $189,376 | $208,443 |
| 95 | $96,703 | $106,973 | $119,632 | $135,021 | $152,377 | $171,076 | $190,967 |
| 100 | $85,874 | $94,629 | $105,836 | $120,308 | $138,323 | $158,173 | $178,955 |
