Age Pension Statistics Australia 2024

Age Pension Statistics Australia
Number of Age Pension recipients2.6 million as of March 26, 2021
(62% of the population aged 65 and over)
Age Pension rates on averageSingle person: $1,064 per fortnight
Couple (per person): $802 per fortnight
Couple (combined): $1,604 per fortnight
The Age Pension’s ImportanceSupports approximately two million Australians
over the age of 65
Age requirementsAge eligibility: 67 years
(gradually increasing since 2009)
Population statistics4.2 million people aged 65 and over as of June 30, 2020
(approximately 16% of Australia’s total population)
Statistics on retirementRetirees aged 55 and above: 55%
Average retirement age: 55.4 years
Age at which people plan to retireAverage retirement age: 65.5 years

The Age Pension is a crucial component of Australia’s social security system, providing financial support to over 2 million elderly citizens who have retired from the workforce.

Understanding the latest Age Pension statistics becomes vital for policymakers, researchers, and the general public as the population ages.

This article aims to provide an overview of the Age Pension statistics in Australia for 2023, shedding light on key demographic trends, expenditure patterns, and the overall impact on the nation’s economy.

How much do you currently get on the Age Pension?

Age Pension Statistics Australia

Determining the Age Pension rate is not a one-size-fits-all scenario. If you meet the criteria to receive the pension, your payment amount will be based on your income and assets.

Eligibility for the Age Pension is determined by various factors, including age, Australian residency status, and passing both the income and assets tests.

However, at present the maximum you will receive as a single person is $1,064 per fortnight. By contrast, couples receive a combined total of $1,604 per fortnight.

Who is eligible for the Age Pension?

Age Pension Statistics Australia

On the 1st July 2023, the Age Pension age increased to the age of 67. Previously it was designated for those aged 66 years and 6 months and older.

To qualify for the Age Pension, it is necessary that you meet the residency requirements as an Australian resident. This implies that you must have lived in Australia for a minimum of ten years, with at least five years being consecutive, and not coming and going during that period.

However, some exceptions to the ten-year residency requirement exist. These include being a refugee or a family member of one, being an Australian resident widow for the past two years, receiving an Australian Widow’s Pension before reaching the eligibility age or having lived or worked in a country that has an international social security agreement with Australia.

How many people get the age pension

Age Pension Statistics Australia

As of March 26, 2021, some 2.6 million Australians received the age pension. This translates to about 62% of the total population of adults aged 65 and over.

Income test

To be eligible for the Age Pension, your income should not exceed a certain limit. For a single person, this limit is set at $204 per fortnight, beyond which their pension payment will be reduced by 50 cents for every dollar earned. Couples, on the other hand, can earn up to $360 per fortnight before their payments get reduced.

As per the rules, a single person can earn a maximum of $2,332.00 per fortnight, while couples can earn up to $3,568.00 per fortnight. Exceeding these limits will result in the cessation of your Age Pension payment.

When determining your eligibility for financial assistance, the income test takes into account various sources of income, such as returns on investments, income from your superannuation fund, rental income from investment properties, employment income, and even deemed income. Deemed income refers to the amount of income Services Australia assumes you earn from owning certain assets, regardless of whether you actually receive that amount.

However, if you are earning employment income, there is a Work Bonus program that allows you to earn above the income limit without affecting your pension rate. You can earn $300 per fortnight as a maximum or generate a balance of $11,800 in your Work Bonus to offset any employment income accrued throughout the year.

Average Income for Retirees in Australia 2024

Average Income for Retirees in Australia.

Retirement is a significant milestone that deserves celebration, but planning carefully is essential to ensure a financially comfortable retirement. By taking action now, you can support yourself in the future and enjoy your retirement to the fullest.

Calculating how much money you’ll need and planning accordingly to achieve a comfortable living standard in retirement is necessary. Preparing for retirement requires careful planning to ensure a comfortable life stage ahead. Since you’ll be retired for many years, enjoying that time is essential.

Regardless of how close or far away retirement may be, there are steps you can take now to prepare. Planning means you can tailor your retirement to your needs and goals.

Below are some stats on the average income for retirees in Australia in 2023.

What is your retirement goal?

Average Income for Retirees in Australia.

When it comes to preparing for retirement, the first step is to identify your retirement goals. What kind of lifestyle do you envision for yourself during retirement? How long do you anticipate being retired? What activities do you hope to pursue during this time? Once you clearly understand your goals, you can begin to develop a plan to achieve them.

It’s important to bear in mind that people are living longer than ever before, which means that we need to ensure we have enough funds to last us throughout retirement. Planning ahead is crucial in order to secure a steady income stream and avoid stress during this period of our lives.

It’s never too early to start planning for retirement; the more time we have to prepare, the better off we will be. Moreover, we need to be ready for the possibility of early or unexpected retirement due to factors such as retrenchment or illness. In such cases, having a solid retirement plan in place can make all the difference.

Determine an Ideal Retirement Age

Average Income for Retirees in Australia.

Planning for retirement involves more than just choosing the year you want to stop working. It also involves determining when you can afford to retire. The earlier you start preparing for retirement, the better your chances of achieving your desired retirement age.

Although the average life expectancy in Australia is 85 for women and 81 for men, it’s important to plan for the possibility of living to 100 or beyond. In Australia, the retirement age is linked to a person’s eligibility for the age pension. Recently, on 1st July, the retirement age increased to 67 years old for those who were born on or after 1 January 1957.

Average Income for Retirees in Australia.

If an Australian woman were to retire at 67 and live until the average age of 85, she would need to rely on her savings, investments, and superannuation to support herself for 18 years. However, retirement plans vary widely, with some individuals choosing to retire before 67 while others continue working well into their golden years.

To plan for retirement, you need to determine when you want to retire and calculate the resources required to finance it.

Proportion of Australians with annual incomes < $140,00099%
Age Pension
– Single Individuals$27,664 annually
– Couples (including supplements)$41,704 annually
Average Income for a Comfortable Retirement (Couples)Approximately $85,000 yearly
Account-based Income Streams
– Most Popular Option
– Average Annual Payment$19,490
– Number of Retirees using AnnuitiesAbout 100,000
– Average Annual Income$45,943
Association of Superannuation Funds of Australia
Retirement Standard
– Income Required for a “Comfortable” Retirement (Couples)Approximately $71,500 annually
– Income Required for a “Comfortable” Retirement (Single)Greater than $50,000 annually

Retirement Statistics Australia 2024

Retirement Statistics Australia

Many people have the aspiration of retiring early, but the actual age at which one retires depends on various factors.

Some individuals may choose to retire when they are eligible for the age pension, while others may opt to do so when they can access their Superannuation.

While it was once customary to retire at age 55, these days ideal retirement age differs for each person. Regardless of the chosen age, several factors are likely to influence the decision.

What is the average retirement age for an Australian?

Retirement Statistics Australia

The Australian Bureau of Statistics (ABS) reports that the average age people retiring in Australia is 55.4 years.

Subsequently, with the life expectancy of a 65-year-old being 85.3 years for men and 88 years for women, it is crucial to carefully consider how we will finance our retirement, as many of us may be retired for a lengthy period of time.

How do I enjoy a comfortable retirement?

Retirement Statistics Australia

The Association of Superannuation Funds of Australia (ASFA) has published the AFSA Retirement Standard 3, which provides guidance on the income needed for a modest or comfortable retirement.

These figures assume that you own your home and are in good health. For a single person aged 65, a modest retirement lifestyle requires an annual income of $31,785, while a comfortable lifestyle requires $50,004. For a couple around the same age, the figures increase to $45,808 for a modest lifestyle and $70,482 for a comfortable lifestyle.

A modest retirement lifestyle is better than relying solely on the age pension and allows for basic activities. A comfortable retirement lifestyle, on the other hand, includes a broad range of leisure and recreational activities, allowing for a good standard of living.

This lifestyle also includes the ability to purchase household goods, private health insurance, a reasonable vehicle, quality clothing, electronic equipment, and even enjoy holidays both domestically and internationally. These guidelines serve as a starting point to determine the category that you would like to fall into and help you to estimate how much money you will need.

What is the Age pension Minimum, and am I eligible for it?

The age pension is a financial aid that assists retirees in covering their living expenses. To qualify, you must be 66.5 years old or above and satisfy specific income and asset criteria.

It’s worth noting that the age threshold for the age pension increased to 67 years on 1 July 2023 for those who missed the 66.5-year cut-off by 30 June 2023. Overall, your eligibility for the age pension depends on your date of birth.

When can I gain access to my Superannuation?

Retirement Statistics Australia

Once you reach your preservation age, which varies from 55 to 60 years, depending on your birth date, you can access your super.

However, there are certain situations, such as severe financial hardship or permanent disability, that allow you to access your super benefits before your preservation age.

Number of retireesStates with the highest proportion of retirees:
Percentage of people over 55 who were retired55% (up from 53%)
Average retirement age (all retirees)55.4 years
Number of people intending to retire within 5 yearsHalf a million
Percentage of female retirees who relied on their partner’s income65.5 years
Percentage of retirees who relied on pension as main incomeMajority
Percentage of female retirees55%
Reasons for leaving the last job:36%
Reasons for leaving last job:
– Reached retirement age or eligible for superannuation46%
– Own sickness, injury, or disability21%
– Retrenched, dismissed, or no work available11%
Weighting and benchmarking
– Government pensionMajority
– SuperannuationMore men than women
Factors influencing retirement decision:Financial security
Reasons for leaving the last job:Tasmania and South Australia
States with the highest proportion of retirees:New South Wales
Adjustments made to the Retirement and Retirement Intentions surveyState with the highest increase in retirees:
Change in retirement definitionMinimum prior employment requirement removed