For years, many Australians marked 65 on their calendars as the big day when work slowed down and the Age Pension kicked in. Families made plans for road trips, moving to smaller places, and a slower pace of life.
That well-known benchmark, though, will be officially over in 2026. The retirement age has changed in Australia, and turning 65 no longer means you can get the government Age Pension.
Here is what you need to know about the changes to Australia’s retirement age in 2026 and how they might affect your plans for the future.
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What Will Change in 2026?
Over the past few years, Australia has slowly raised the age at which people can get the Age Pension. The change will be done by 2026.
- Important changes: The Age Pension age is now 67 for men and women.
- People who retire at 65 are no longer eligible for Age Pension payments.
- You can still get to your superannuation earlier, depending on your preservation age.
- Tests of income and assets still decide who is eligible.
- As of 2026, there is no law that allows for any more increases beyond 67.
- Because of the change, Australians born on or after January 1, 1957, won’t be able to get the Age Pension until they turn 67.
Why did Australia make the retirement age higher?
The choice was made because of demographic and economic pressures.
The population of Australia is getting older very quickly. According to government data, about 22% of Australians will be 65 or older by 2066. People are also living longer; the average life expectancy is now over 83 years.
A representative from the Department of Social Services said, “The increase to 67 makes sure that the Age Pension stays viable while also taking into account longer life expectancy and more people working.”
The goal of the reform is to ease long-term financial strain while encouraging people to stay in the workforce longer.
The Real Stories Behind the Policy
Margaret Lawson, 64, from Brisbane, was going to retire at 65 and use the Age Pension to help her superannuation.
“I always thought 65 was the end,” she said. “Now I need to make my savings last longer and maybe work part-time for another two years.”
Peter Nguyen, 66, from Melbourne, said the change made him rethink his plans in the same way.
“I have some super, but not enough to stop working completely yet.” He said, “Waiting until 67 makes a big difference.“
Their stories show that retirement planning needs to be more flexible than ever before.
Comparing the Age Pension Timeline
What It Means for Retirees in 2026: An Expert’s View
Experts say that the reform has helped keep long-term pension costs stable. One of the biggest things the federal government spends money on is the Age Pension.
The Treasury says that the Age Pension costs about 2.3% of GDP, and if nothing changes, that number could go up as the population ages.
Rebecca Holmes, a financial planner, says that the biggest problem is planning gaps.
“Even though the pension age is 67, many Australians still plan to retire at 65.” She said that two years without enough superannuation money can cause financial stress.
Experts say that even though Australians are living longer, not all workers can easily extend their careers, especially those who do physically demanding work.
What will happen to superannuation in 2026?
It’s important to keep the rules for the Age Pension and access to superannuation separate.
You can usually get to super once you reach preservation age, which is between 55 and 60 years old, depending on when you were born.
A lot of Australians can start getting super before they turn 67.
But getting super early may lower your retirement income in the long run.
As of 2026, the highest full Age Pension rate for a single person is more than AUD $1,100 every two weeks (but this is subject to indexation and eligibility tests). Couples get more money together.
There are still income and asset limits, so not everyone automatically qualifies at 67.
Effect on the workforce in 2026
Older Australians are more likely to work since the change to 67.
According to data from the Australian Bureau of Statistics, the number of people aged 65 to 69 who are participating has more than doubled in the last 20 years. Some people are choosing to work longer, while others feel they have to because of money.
Employers are responding with:
- Hours that can change
- Options for phased retirement
- Part-time work
- Programs to help people learn new skills
The old way of stopping work suddenly at 65 is going away quickly.
What You Need to Know Right Now
If you are getting close to retirement age in Australia in 2026, think about the following:
- Check the exact date you can get your Age Pension.
- Check your superannuation balance and how you plan to take money out.
- Look at the current limits on income and assets.
- Look into part-time or flexible work options.
- If you need to, talk to a financial advisor to fill the gap between 65 and 67.
Here’s what you need to know: the Age Pension no longer automatically gives you money when you turn 65. It is important to plan ahead.
