A man who is currently 65 years old can expect to live another 19 years – to 84 years of age. A 65 year old women will likely live 22 more years to 87. Hopefully you will live longer than average!

How do you want to be spending your golden years?


To live comfortably, a single retiree needs about $817 per week ($42,604 per year), while a couple would need $1119 per week (or $58,364 per year). This includes a car, clothes, private health insurance and leisure activities such as entertainment and holidays.

These figures are correct in 2015, but inflation means retirement costs will rise over time.

Many people in retirement live on a mixture of their own savings and the Aged Pension.

The Aged Pension is paid to people who meet age and residency requirements. The rate you receive depends on the level of your income and assets. You can have a certain amount of income and assets and still receive the maximum rate Age Pension. If your income or assets exceed the thresholds, your Age Pension reduces on a sliding scale.

Income and assets tests are used to assess your eligibility.

The test resulting in the lower rate of Age Pension being used.

Income test

Your rate of Age Pension will be based on how much income you receive. Most forms of income are considered, including rent, super and employment earnings. The Work Bonus means that your employment income is treated at a concessionary rate under the income test.

Assets test

Your rate of Age Pension will be based on the value of your assets, including property, but excluding the family home. If you do decide to sell your home or other assets it may affect your Age Pension rate. Under the assets test, there are hardship rules for situations where you cannot sell a particular asset.

Maximising your income

You may be able to structure your investments and income to maximise your retirement income.

Because of gifting rules major restructuring is best done 5 years or more before being eligible for the pension.

When can you withdraw your super?

Conditions of release:

  • Under 65 – permanently retired from the workforce, or not intend to work for more than 10 hours per week AND you’ve reached your ‘preservation age’
  • Turning 60 and left job with an employer.
  • Turning 65 –you can automatically withdraw your super even if you’re still working.