Retirement and Retirement Intentions, Australia

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Retiree statistics and the retirement plans of people aged 45 years and over

Reference period
2020-21 financial year
Released
29/08/2023

Key statistics

  • There were 4.1 million retirees. 
  • Average age at retirement (of all retirees) was 56.3 years. 
  • 140,000 people retired in 2020, with an average age of 64.3 years.
  • Average age people intend to retire is 65.5 years. 
  • Pension was the main source of income for most retirees. 

Retirement

  • In 2020-21, 56% of retirees were women. 
  • The population of retired women increased more than men. 
  • On average, women retire sooner than men. However, women are retiring later than in previous years.
     
  2018-192020-21Change
People aged 45 years and over
 Retirees3.8 million4.1 million+0.3 million
 Proportion retired40%40%No Change
 Average age of retirement55.4 years56.3 years+1.0 years
Men aged 45 years and over
 Retirees1.7 million1.8 million+0.1 million
 Proportion retired37%37%No Change
 Average age of retirement59.5 years59.3 years-0.2 years
Women aged 45 years and over
 Retirees2.1 million2.3 million+0.2 million
 Proportion retired42%43%+1 pts
 Average age of retirement52.1 years54.0 years+1.9 years



 

  • Data sourced from Table 2 in Data downloads and combines data from different iterations of the survey and measures. State breakdowns are also available in Table 2. 

Of the 140,000 people who retired in 2020, the average age at retirement was 64.3 years. For men, the average age was 65.4 years and for women the average was 63.7 years. 

  • Note: It is important to consider the relative size and structure of the ‘baby boomer’ age cohorts when looking at changes in the number of retirees over time.
  • Data sourced from Table 14 in Data downloads. State breakdowns and estimates for previous surveys are also available in Table 14. 

COVID-19 Impacts

The latest data presented in this release of Retirement and Retirement Intentions was collected between July 2020 and June 2021 and reflects the labour market conditions at that time. ABS advises caution when analysing the reasons why people were retired or could not work during this time. As seen in other ABS releases, the increase in people reporting 'Other' for some questions reflects pandemic-related factors.  

Retirement Intentions

  • People are intending to retire at 65.5 years, which is largely unchanged since 2018-19 (65.6 years).
  • 670,000 people intend to retire in the next 5 years, with 220,000 in the next 2 years.
  • Of those who intended to retire, 37% (1.7 million) did not know when they would retire from the labour force, down from 40% in 2018-19.
  2018-192020-21Change
People who intend to retire from the labour force
 Intends to retire in 2 years194,000223,000+29,000
 Intends to retire in 5 years552,000673,000 +121,000
 Average age intends to retire65.6 years65.5 years-0.1 years
Men who intend to retire from the labour force
 Intends to retire in 2 years83,000117,000+34,000
 Intends to retire in 5 years271,000351,000+81,000
 Average age intends to retire66.0 years66.0 yearsNo Change
Women who intend to retire from the labour force
 Intends to retire in 2 years111,000106,000-4,000
 Intends to retire in 5 years281,000322,000+40,000
 Average age intends to retire65.1 years64.9 years-0.2 years
  • Data sourced from Table 14 in Data downloads. State breakdowns and estimates for previous surveys are also available in Table 14. 
  • People working in Agriculture, forestry and fishing have the highest average age which they intend to retire (67.8 years old).
  • Information Media and telecommunications has one of the smallest populations of people aged 45 years and over who intend to retire, and the changes in estimates for average age intends to retire reflect a high level of sampling variability.
  • Data sourced from Table 9 in Data downloads. State breakdowns and estimates for previous surveys are also available in Table 9. 

Reason ceased last job

In 2020-21, the top 3 reasons retirees ceased their last job were:

  • Reached retirement age or eligible for superannuation (28%)
  • Own sickness, injury or disability (13%)
  • Retrenched, dismissed or no work available (7%).

Retired women were more likely to have left their last job to care for an ill, disabled or elderly person than men (4% compared to 2%). 

  • Lost last job for economic reasons (retrenched) includes people who were dismissed.
  • Left last job to retire includes people who left their last job to coincide with their partner's retirement.
  • Data sourced from Table 5 in Data downloads. State breakdowns and estimates for previous surveys are also available in Table 5.

Income at retirement

Between 2018-19 and 2020-21:

  • The government pension remained the main source of income for most retirees
  • More people retired with superannuation as a source of income, but the increase was greater for men than women
  • Retirees with no personal income dropped to around 19% for women and 3% for men.

In 2020-21:

  • 34% of retired women relied on their partner’s income to meet their living costs at retirement (compared to 7% of retired men)
  • For people intending to retire, the main factor that will influence their decision about when to retire was financial security.
     
  Proportion of retirees
  2018-192020-21Change
 Retired men aged 45 years and over
All sources of income included:
 Government pension53%53%No Change
 Superannuation49%51%+2 pts
Main source of income
 Government pension49%44%-5 pts
 Superannuation31%35%+4 pts
 No personal income6%3%-3 pts
 Retired women aged 45 years and over
All sources of income included:
 Government pension45%46%+1 pt
 Superannuation27%29%+2 pts
Main source of income
 Government pension44%42%-1 pts
 Superannuation18%19%No change
 No personal income29%19%-10 pts

Note: Government pension includes all types of government allowance and Superannuation includes all types of annuities and allocated pensions.

 

  • Data sourced from Table 6 in Data downloads. State breakdowns and estimates for previous surveys are also available in Table 6.

Superannuation

Between 2018-19 and 2020-21, the number of people who reported receiving a lump sum payment from a superannuation scheme increased from 540,000 to 870,000. Most of this increase was observed in people who had not yet retired, doubling from 270,000 in 2018-19 to 560,000 in 2020-21. This increase reflected the early release of superannuation during the COVID-19 pandemic, which allowed up to $20,000 to be accessed before retirement by people suffering financial hardship.

  • Data sourced from Table 8 in Data downloads. State breakdowns and estimates for previous surveys are also available in Table 8.

State and territory

Tasmania had the highest proportion of retirees (48.5% of population aged 45 years and over). 

Between 2018-19 and 2020-21:

  • Queensland had the greatest increase in retirees (+76,000) 
  • Australian Capital Territory had the highest increase in proportion of retirees (32% to 37%)
  • Victoria had the largest decrease in proportion of retirees (40% to 39%).
 People aged 45 years and over
 RetireesProportion retiredChange in proportion
since 2018-19
New South Wales1.3 million41%No Change
Victoria1.0 million39%-1 pt
Queensland830,00040%+1 pt
South Australia350,00045%No Change
Western Australia390,00037%+3 pts
Tasmania120,00048%+1 pt
Northern Territory16,00023%+4 pts
Aust. Capital Territory57,00037%+4 pts

 

  • Data sourced from Table 13 in Data downloads. Estimates for previous surveys are also available in Table 13.

Retirement and Retirement Intentions microdata in DataLab

Retirement and Retirement Intentions microdata from 2014-15 to 2020-21 is available in ABS DataLab for the first time, released as a supplementary file for the Longitudinal Labour Force (LLFS) microdata. All existing users of the LLFS microdata will automatically get access to the additional file and new users can apply for access to both files.

A detailed data item list for the Retirement and Retirment Intentions microdata is available in Microdata and TableBuilder: Retirement and Retirement Intentions.

Data downloads

Data files

Previous catalogue number

This release previously used catalogue number 6238.0.

Prior statistics were also published in:

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