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.

For more information, read SuperGuide articles:

• Accessing super: Ceasing employment after 60
• What age can I access my super (Preservation Age)?

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.

For more information, read SuperGuide article When can I access my super? All conditions of release explained.

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. For more information, see SuperGuide article Making downsizer super contributions: 10 things you need to know.

For more information on super contributions, see the following SuperGuide articles:

• How to make super contributions after you’ve retired
• Work test: Making super contributions over 67
• How to contribute to your super in your late 60s: What are the rules?
• Super’s rulebook: What rules apply to you at different ages?

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).

For more information, read SuperGuide article In your 60s? The super rules that apply to you.

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).

For more information, read SuperGuide article Your tax guide to accessing your super over age 60 benefits.

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

For more information, read SuperGuide articles:

• How long you can expect to live, and what it means for your super
• Take the Australian Life Tables with a pinch of salt
• Life expectancy and longevity

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 is 66 years for anyone born between 1 January 1954 and 30 June 1955.

Age Pension ages from 1 July 2019 are listed in the table.

Date of birth	Age Pension eligibility age	Date that Age Pension age changes
Born between 1 January 1954 and 30 June 1955	66 years	1 July 2019
Born between 1 July 1955 and 31 December 1956	66 years and 6 months	1 July 2021
Born from 1 January 1957 onwards	67 years	1 July 2023

Source: Department of Social Services

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
• Satisfy the Age Pension income test
• Meet Australian residency requirements.

For more information see the following SuperGuide articles:

• Am I eligible for the Age Pension?
• How do I apply for the Australian Age Pension?
• Age Pension calculator: How much could you be eligible for?
• Age Pension rates (March 2020 to March 2021)
• Age Pension income test limits (July 2020 to March 2021)
• Age Pension assets test limits (July 2020 to March 2021)

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.

For more information, read SuperGuide articles:

• Commonwealth Seniors Health Card: What it is and how to apply
• What concession cards are available for Seniors and Pensioners?

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.

For more detailed information on state Seniors Card eligibility and benefits, read SuperGuide article Your simple guide to state Seniors Cards: How they can save you money.

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.

For more information, read SuperGuide article Guide to transition to retirement pensions (TTRs or TRISs)

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. For more information, read SuperGuide article How much super do I need to retire?

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

Assumptions used to calculate the tables

• You own your own home and have personal assets of $25,000 or less.
• These calculations do not allow any investment assets outside super. Note: The amount of investment assets you have can greatly affect the amount of Age Pension you are eligible to receive.
• Inflation costs are a 2% rise per year in cost of living plus a 1.2% additional rise per year in living standards.
• All returns are net of fees.
• Results are in today’s dollars.
• We recommend you also review the assumptions that MoneySmart list below their calculator.