From July 2025, Australia’s retirement landscape is changing. The government is gradually lifting the age at which people can access their superannuation and the Age Pension, reflecting longer life expectancy and the need for greater financial sustainability.
If you’re planning your retirement, it’s important to understand these changes and how they affect your income, lifestyle, and long-term financial security.
What’s Changing in 2025?
Currently, the Age Pension age is set at 67. However, with reforms coming into effect, the rules around superannuation access (preservation age) and retirement planning will be tightened.
- Age Pension eligibility – Australians will need to meet higher age requirements, depending on their date of birth.
- Superannuation preservation age – by 2025, everyone born after 1 July 1964 will need to wait until at least age 60 to access their super.
Superannuation Preservation Age
Your preservation age is the minimum age you must reach before withdrawing super (unless you meet special conditions like severe hardship or permanent disability).
Here’s how it looks in 2025:
| Date of Birth | Preservation Age | Access to Super |
|---|---|---|
| Before 1 July 1960 | 55 | Already eligible |
| 1 Jul 1960 – 30 Jun 1961 | 56 | Eligible now |
| 1 Jul 1961 – 30 Jun 1962 | 57 | Eligible now |
| 1 Jul 1962 – 30 Jun 1963 | 58 | Eligible now |
| 1 Jul 1963 – 30 Jun 1964 | 59 | Eligible now |
| From 1 July 1964 onwards | 60 | Eligible at 60+ |
By July 2025, every Australian born after 1964 must wait until 60 to access super.
Impact on the Age Pension
The Age Pension remains a safety net, but with a higher eligibility age, many people may face a retirement income gap. For example:
- You may want to stop working at 60.
- You can access super at 60, but the Age Pension won’t kick in until you reach the official pension age.
- This makes superannuation savings more important than ever to bridge the gap.
How This Affects Retirement Planning
For workers nearing retirement, the higher ages mean smarter planning is essential.
Key strategies include:
- Boosting voluntary contributions early.
- Considering salary sacrifice into super.
- Diversifying retirement income (investments, property, part-time work).
- Checking your projected retirement income regularly.
Preparing for the Transition
If you’re close to retirement in 2025, here’s what you should do now:
- Check your preservation age based on your date of birth.
- Review your super balance to see if it covers your retirement goals.
- Seek financial advice for strategies like tax-effective contributions or investment planning.
- Plan for the “gap years” between stopping work and accessing the Age Pension.
FAQs – Retirement Age 2025 in Australia
1. What is the new retirement age in 2025?
From July 2025, the superannuation preservation age will be 60 for all Australians born after 1 July 1964.
2. Is the Age Pension age also changing in 2025?
The Age Pension age remains at 67, but reforms mean stricter alignment with super access rules.
3. Can I still retire before 60?
Yes, but you cannot access your super until you reach your preservation age (60+). You’ll need alternative savings or income.
4. Will everyone be affected by the 2025 changes?
No. Those born before July 1964 already reached their preservation age and won’t be impacted.
5. How can I prepare for the new rules?
Review your super, make extra contributions if possible, and plan how you’ll cover income needs before pension eligibility.
Conclusion
The retirement age changes in 2025 mark a big shift in how Australians approach retirement. With the preservation age set at 60 for younger cohorts and the Age Pension age remaining at 67, planning ahead is more important than ever.
Start reviewing your super now, explore contribution strategies, and think about how you’ll fund the years between early retirement and pension access. With the right preparation, you can enjoy financial security and flexibility in your retirement years.