Australia’s New Retirement Age 2025 – Official Update for Senior and Near-Retirement Workers
From 2025, the Age Pension eligibility age in Australia is 67 years for people born on or after 1 January 1957. While the government has increased the qualifying age to reflect longer life expectancy and fiscal pressures on the pension system, there is no compulsory retirement age — many people continue working past 67 if they choose.
Age of retirement and pension eligibility
As of 2025, Australians aged 67 and over may claim the Age Pension subject to the usual eligibility tests including residence, income and assets. The pension age has been gradually raised over recent decades — from 65 to 66.5 and now to 67 — to support the long-term sustainability of the retirement system in the face of demographic change.
Why the pension age changed
The increase to 67 reflects rising life expectancy and better health among older Australians, which allow people to remain in the workforce longer. Raising the eligibility age helps reduce pressure on public finances by lengthening the working life and delaying pension access. However, the policy raises equity concerns for people in physically demanding jobs or with poorer health.
Implications for near-retirement workers
Workers approaching retirement should check their preservation age — the age at which they can access superannuation without restrictions — which ranges from 55 to 60 depending on year of birth. While the official pension age is 67, many people will access super earlier. The rise in pension age means individuals may need to adjust retirement plans, savings targets and work arrangements.
| Item | Details |
|---|---|
| Formal pension age (2025) | 67 years |
| Applies to | People born on or after 1 Jan 1957 |
| Pension eligibility | 67 + residence, income and asset tests |
| Preservation age (super) | 55–60 years (based on year of birth) |
| Compulsory retirement age | None — working past 67 is permitted |
FAQs
1. Is the retirement age different in 2025?
Yes — the Age Pension eligibility age is officially set at 67 years from 2025 for those born on or after 1 January 1957.
2. Can people keep working after 67?
Yes. Australia has no mandatory retirement age; people may work beyond 67 if they wish and are able to.
3. When can I access my superannuation?
Access to superannuation is determined by your preservation age, which currently falls between 55 and 60 depending on birth year. This is separate from the Age Pension eligibility age.
Final notes
The change to a 67-year Age Pension eligibility age in 2025 is a response to demographic and fiscal pressures. Individuals should review their retirement plans and seek financial advice if needed to accommodate the adjusted timing of pension access.
