Today, pensioners account for 40% of the entire population.
Where do retirees get most of their income? How long do people over the average retirement rate stay in the workforce? What do pensioners spend their hard-earned money on?
Find out the answers and more as we explore the most important retirement statistics from Australia to know in 2022.
8 Fascinating Australian Retirement Facts
- In 2019, there were 3.9 million retirees in Australia.
- 66.2% of Aussies aged 55 and over are still in the workforce.
- In 2019, women took up 43% of retirees in Australia.
- Australians typically intend to retire at the age of 65.5 years.
- A government pension is the main source of income for nearly 50% of Aussies post-retirement.
- In 2020, 99% of Aussies had a projected annual retirement income that was less than $140,000.
- People in Australia have an annual age pension rate of $25,678 in 2022.
- In 2020, 335,889 Aussies were living in retirement villages.
General Retirement Statistics Australia
1. In 2019, there were 3.9 million retirees in Australia.
(Australian Bureau of Statistics)
ABS reveals that the number of retired Australians aged 45 and over has widened by 0.3 million since the last conducted survey in 2017. In 2019, the average age of retirement in Australia was 55.4 years, while the proportion of pensioners rose to 40%.
2. 66.2% of Aussies aged 55 and over are still in the workforce.
(OECD)
Aussies stay in the workforce much longer than other countries do on average. Even though Australia is far behind Iceland, where 81.9% of the mature aged population are still employed, the country still ranks higher than most countries do.
In comparison, the USA has 62.5% of people aged 55-64 in the workforce, while France has an even lower percentage of 56.3%. Turkey’s mature labour force is the lowest globally, estimated at 30.5%.
3. You need to be 66 years and 6 months old to be eligible for an age pension in Australia.
(Australian Government Department of Social Services)
Australia has slowly increased its retirement age from 65 years and 6 months in 2017 to 66 years and 6 months in 2021. The Australian pension age is expected to continue its growth in the future, setting up a new age requirement of 67 years by 2023.
One of the reasons why the retirement age in Australia has been pushed forward is due to an increase in the average life expectancy – the current life expectancy for Australia is 83.79 years.
4. Farmers and farm managers are more likely to stay in the workforce
(ASFA)
The most common occupation for older male workers is farming. In 2020 there were a total of 40,297 men aged 65+ still working as farmers or farm managers, while 29,446 were specialist managers and 26,491 road and rail drivers.
Working women aged 65 and over were usually employed as education professionals, having reached 22,071 workers or numerical clerks with 21,652 employees.
Demographic Statistics
5. In 2019, women made up 43% of retirees in Australia.
2.1 million retirees were female as opposed to 1.7 million men aged 45 or over who stopped working. Despite the higher number of retired female workers, women stay employed for longer today than they did in the past. In 2020, the employment-to-population ratio of 65-year-old women was 35.6% compared to 2000 when it stood at 10%, the most recent statistics on women in the workplace reveal.
6. Australians typically intend to retire at the age of 65.5 years.
Even though Aussies as a whole intend to stop working at the age of 65.5, women generally retire earlier than men. The average retirement age in Australia for the female population, based on reports from 2019, is 52.1 years, while the average man is calculated to be 59.5 years old when he chooses to give up work.
7. Only 56% of Aboriginal and Torres Strait Islander people receive a pension.
(Australian Institute of Health and Welfare)
In 2021, out of all indigenous Australians who fulfilled the age requirement for retirement in Australia, 24,000 received an age pension. Although a small number, it still is an improvement from 2020, when only 53.1% of Aboriginal and Torres Strait Islander people obtained their pension income.
8. New South Wales had 1.3 million retirees in 2019.
Latest ABS statistics show that although New South Wales has bigger number of retirees nationwide, the Northern Territory had the highest proportion increase, from 14% to 20%. Still, Tasmania, generally considered as one of the best places to live in Australia, has the biggest percentage of pensioners—47% of the population is retired.
Reason Why Aussies Left Their Last Job
9. 46% of Australian retirees left their last job because they reached the age requirement for superannuation.
Most retirees in Australia left their last job because they reached the acquired retirement age. The second most common answer was injury or illness, as 21% reported that some form of disability forced them to retire early.
10. Women are more likely to leave a job to take care of an ill family member.
When an elderly, ill, or disabled person requires care, 8% of women are ready to leave their job to look after their family members. Only 2% of men stopped working to take care of a close person in need of help.
Sources of Income and Costs of Retirement
11. A government pension is the main source of income for nearly 50% of Aussies post-retirement.
Both men and women rely on government pensions when it comes to income after retirement in Australia. In 2019, 49% of male retirees depended on government pensions, while 44% of women did the same.
On the other hand, superannuation was the primary source of income for 30% of retired men and 17% of women.
12. In 2019, almost 30% of older women in Australia had no personal income.
For more information on what is a super fund and how to get the most out of one, read this useful guide.
Many older Aussie women relied on their partner’s income for financial security after retirement in 2019. However, while 29% of women had no personal income, men take up a significantly lower share of Australians with no retirement income, estimated at 7%.
13. In 2020, 99% of Aussies had a projected annual retirement income that was less than $140,000.
(Treasury)
The average retirement income in Australia is less than $140,000. Retirement statistics in Australia show that 95% of Australian retirees get an annual income under $85,000, while only 10% have the lowest earnings, below $50,000.
14. Single retirees need $535 a week for a modest life in Australia.
(AMP)
For healthy older adults to live out a humble and modest life in Australia, they will need an annual retirement income of $27,902 if single and $40,380 per year if they live as a couple. This amounts to $535 worth of earnings per week as a single retiree, or $774 if living with a spouse.
15. People in Australia have an annual age pension rate of $25,678 in 2022.
(Super Guide)
From March 2022 to September of the same year, Aussie retirees will earn an annual pension rate of $25,678 if single. Couples gain $38,709 if combined and $19,354 on their own.
Single non-residents, on the other hand, get an annual pension of $19,310 per year, while the average pension in Australia for non-resident couples is $32,282 a year.
16. The average superannuation balance for women in their 60s is $165,986.
(Canstar)
As a result of a huge gender pay gap, women have much less in superannuation and retirement savings. Stats show that women in their 60s have a superannuation balance of $165,986, while men save up to $198,482.
17. Single Aussies aged 65 that live modestly spend $105.49 on housing weekly.
How do Australian retirees from different backgrounds decide to spend their income? Statistics show the following:
- Single retirees aged 65 spend the most money on housing per week. They also spend $99.69 on leisure activities, $97.90 on transport and $96.10 on food.
- Single 65-year old retirees that have a higher income spend $196.02 on leisure activities, followed by transport ($159.91), food ($124.25) and housing ($123.90).
- Couples around 65 years of age spend much more on food than the national average. Namely, an average couple’s grocery bill comes out to $144, while retired couples with a comfortable lifestyle spend around $215.96.
- Healthcare is another big expense for older, wealthier Australians who spend around $198.79 on health-related services and products.
Retirement Home Statistics
18. Australia had 2,722 retirement villages in 2020.
There’s a retirement village in every community on the territory of Australia. In 2020, the number got to 2,722 nursing villages in exactly 217,145 locations.
19. In 2020, 335,889 Aussies were living in retirement villages.
Out of the total 335,889 elderly Australians using residential care, 183,989 lived there permanently. The majority of permanent residential care users were women, with a share of 66.5%, while men occupied 33.5%. Demographics also show that 58% of seniors in retirement villages were aged 85 or over.
20. The average Australian retirement village entry fee cost 463,000 in 2020.
(Downsizing)
To get an elderly family member in an Australian retirement village, be prepared to pay a price as high as $2 million. You can find a less expensive option, though, the lowest being $100,000. The average monthly cost is estimated to be $518.
21. In 2020 there were 277,671 residential aged care employees.
(Australian Government Department of Health)
Reports reveal that out of the entire Australian residential aged care staff, 267,751 were employed permanently, and 208,903 were direct care workers.
22. 23% of direct care workers in retirement homes are nurses.
In 2020, resident home facilities had 48,929 employed nurses, out of whom most were registered nurses that worked part-time permanently, with a share of 65% or 21,210 employees. Personal Care Workers occupied 70% of the whole staff, as there were a total of 146,378 employed PCWs.
The Allied Health section had only 13,596 aged care professionals, with physiotherapists, diversional therapists, and allied health assistants being the most sought after professions.
Bottom Line
Retirement statistics from Australia show that the nation provides a well off age pension allowing retirees to lead a humble, but comfortable life. Pensioners in the country have the means to support themselves and indulge in travelling and leisure activities. However, if you wish to experience a more luxurious retirement in Australia, you will have to set some money aside as savings or even an investment into assets or property.
- AMP
- ASFA
- ASFA
- Australian Bureau of Statistics
- Australian Government Department of Health
- Australian Government Department of Social Services
- Australian Institute of Health and Welfare
- Australian Institute of Health and Welfare
- Australian Institute of Health and Welfare
- Australian Institute of Health and Welfare
- Canstar
- Downsizing
- IBISWorld
- OECD
- Super Guide
- Treasury
