There’s More to Retirement Than Just Hitting 67

Retirement planning often feels like it's all about hitting a certain age or number, but the reality is more nuanced.

A recent listener question gave us the perfect opportunity to unpack some of the key things that many couples overlook when preparing for retirement.

The confusion around age 67

For many people, 'retirement', 'Age Pension' and 'accessing superannuation' are a big, combined thing.

Many people assume they can't touch their super until they're 67, but that's not the full picture.

While 67 is the eligibility age for the Centrelink Age Pension, it's not necessarily the age you can access your super.

In fact, you can often access your super well before that—either by retiring after 60, ceasing an employment arrangement, or simply turning 65.

For example, in Clara’s case, her husband is 66, turning 67 soon, and they want to use his $290,000 in super to pay off a $250,000 mortgage.

The good news?

He could’ve accessed his super as soon as he turned 65, no strings attached. Which means they could have cleared the mortgage years ago.

(Now, the question of whether they should have is a very different one...where personal advice begins).

Accessing super is not the same as getting the pension

The other big misconception we see is the confusion between accessing super and qualifying for the Age Pension.

Super is your money, subject to a "condition of release."

Centrelink's Age Pension is government money, subject to eligibility tests—specifically, the income and asset tests.

In Clara’s case, she’s 60, still working, and earning $110,000 a year.

That income alone is enough to disqualify the household from pension entitlements (for now), even if her husband meets the age criteria.

But if she slows down work—or stops—it’s not a simple switch to pension access. It’s a balancing act.

Reducing income might help pension eligibility, but could also mean dipping into super more aggressively, reducing long-term retirement sustainability.

Keep in mind that the income test for the Age Pension is not a dollar-for-dollar swap - reducing your income by one dollar doesn't increase your pension by one dollar. So, in some situations, you could be (financially) worse off.

The art of pre-retirement planning

This is where personal financial advice makes a huge difference.

Planning when and how to wind down work, how much super to move into pension phase, and how to structure assets in a way that supports your lifestyle—all these things are highly individual.

And sometimes, people can get fixated on getting the Age Pension without considering whether it’s even necessary for their goals.

You shouldn’t work longer than you want to just to hit a number, nor retire early and struggle just to get a small government payment. It’s about matching your financial options with the life you want to live.

Final thoughts

Clara’s question is one we hear all the time.

And while the rules can be confusing, the heart of the conversation should always be about what you want your retirement to feel like—not just how to tick the right boxes.

Whether it’s paying off the mortgage, easing out of work, or working out what pension you’re entitled to, start with the life you want—and get advice to help make it happen.

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