If you thought that Australians seem to be retiring later than ever, you’d be right.

The latest data from the Australian Bureau of Statistics (ABS), the 2021-2021 financial year, revealed the average at retirement (of all retirees) has increased to 56.3 years.

140,000 people retired in 2020, with an average age of 64.3 years, which was very close to 65, the age qualification for the Age Pension.

However, this figure is expected to climb even higher as the eligibility age for the Pension is increased.

The Australian Government has raised the Pension age to 67, the joint highest in the world and plans to increase the Pension age to 70 by 1 July 2035.

The ABS data also shows people are intending to retire at 65.5 years, which is largely unchanged since 2018-19 (65.6 years). Of those who intended to retire, 37% (1.7 million) did not know when they would retire from the labour force, down from 40% in 2018-19.

What does this mean for you?

Planning ahead – and working out how much you will need to live comfortably in retirement – is key.

“A couple needs about $70,000 per year, and a single person about $50,000, to have what’s a dignified retirement,” Association of Superannuation Funds of Australia deputy chief executive Glen McCrea said.

“A dignified retirement isn’t opulent … It’s pretty basic.”

Most Australians will be able to access their super between the ages of 55 and 60 years (depending what year they were born), but not everyone retires from full-time work straightaway. Instead, people can wind down their working hours and begin accessing some of their super via a transition to retirement (TTR) strategy.

If you are unsure on the right retirement strategy for you, it’s best to seek professional financial advice.

This information is for general purposes only and should not be considered as financial advice. Always consult with a qualified professional before making any financial decisions.