The Age Pension age has increased
On 1 July this year, the age at which you can claim the Age Pension increased from 65 years to 65.5 years.
For the next six years, the Pension age will continue to increase by six month increments every two years (see Table 1 below). It will stop increasing once it reaches 67 in 2023.
Table 1 – increases to the Age Pension eligibility age
|Commencement date||Age Pension age||Affect people born|
|Before 1 July 2017||65||Before 1 July 1952|
|From 1 July 2017||65.5||Between 1 July 1952 and 31 December 1953|
|From 1 July 2019||66||Between 1 January 1954 and 30 June 1955|
|From 1 July 2021||66.5||Between 1 July 1955 and 31 December 1956|
|From 1 July 2023||67||After 1 January 1957|
Source: Australian Department of Human Services
The increases mean that if you were born after 1 January 1957, you will not be eligible to access the Pension until you are 67.
The aim is to bring the Age Pension more in line with our increasing life expectancy. People are living longer in retirement, which has vastly increased the cost of providing the Pension to all eligible Australians.
Remember, you can access your superannuation once you reach your preservation age. This could be as early as 55, depending on when you were born. You can work out when your preservation age is here.
If you had planned to retire at 65, but are now concerned about managing your finances without the Age Pension, you could access your superannuation to draw yourself an income stream. This could help to supplement your retirement until you can access the Age Pension.
If your retirement plans have been effected by the Age Pension age increase, talk to the financial advisers at Intrust360°. Whatever your financial situation, they will be able to give you some strategies to manage your finances and can advise you on retiring as planned. Call 1300 001 360 to book an appointment,