Is this the golden age of retirement?
The latest Household, Income and Labour Dynamics in Australia (HILDA) survey shows we’re retiring later, but healthier and wealthier
Published 19 September 2025
Is this the golden age of retirement?
The annual Household, Income, and Labour Dynamics in Australia (HILDA) Survey follows the lives of around 16,000 Australians each year over the course of their lifetime.
Started by the Australian government at the start of this century, it aims to collect information on many aspects of life in Australia including household and family relationships, income and employment, health and education.
But according this year’s survey results – which brings together 20 years of data between 2002 and 2023 – some of the biggest changes we’ve seen are in retirement.
When to retire is one of the biggest life decisions we make. But more Australians are remaining in the workforce for longer.
There’s a gradual decline in retirement rates across most age groups, particularly among those aged 60-69.
The typical Australian is now retiring about five years later than they did in 2003.
In 2003, the median retirement age was 59 for women and 60 for men; by 2023, it had risen to 64 for women and 65 for men.
The decline in retirement rates is more pronounced for those aged 60-64.
In 2003, about 70 per cent of women and 49 per cent of men in this age group were retired, but by 2023, this had fallen to around 41 and 27 per cent, respectively.
This is one of the most significant declines in retirement rates across all age groups, suggesting that people are increasingly delaying retirement.
The pension age has also increased. In 2003, the Aged Pension eligibility age was 62 for females and 65 for males. By 2013 it was 65 for everyone, and by 2023 it had risen to 67.
The reasons for retirement are changing, too.
In 2003, nearly 39 per cent of recent retirees said health was their primary reason for leaving the workforce. This has dropped to 29 per cent but remains the most frequently cited reason for retirement.
On average, we are retiring wealthier.
Since 2015, our median superannuation balance at retirement is up 43.5 per cent for men and 110.3 per cent for women, though women still retire with nearly $AU120,000 less than men.
Despite faster growth for women, men’s median retirement savings in 2023 are still around 1.6 times higher.
Retirees with larger superannuation balances tend to retire earlier than those with smaller balances.
Those with the largest balances (top 20 per cent) retire on average 4-5 years earlier than those with lowest balances (bottom 20 per cent).
The HILDA Survey first included a focus on retirement in 2003 and has repeated it every four years since.
Between 2003 and 2023, the median retirement age for recent retirees – those who retired within the past four years – increased by around five years for both men and women.
One factor likely contributing to this shift is the gradual rise in the Age Pension eligibility age, which reached 67 in July 2023. For women, the qualifying age had earlier increased from 60 to 65 over a 20-year period.
At the same time, labour force participation at older ages has risen, and unemployment rates among older Australians have remained low.
While pension eligibility age is one influence, retirement decisions are shaped by a mix of health, job-related, financial, and family or lifestyle factors.
Health-related reasons – including a person's own health, the health of a spouse or partner, or the health of another family member – are still the most common reasons for retirement.
However, the group of people saying this is the main reason for retirement declined from 39 per cent of recent retirees in 2003 to 29 per cent in 2023.
Job-related reasons have fluctuated between 21 per cent and 30 per cent of responses over the past two decades.
Financial reasons – around 13 per cent of recent retirees in 2003 – have increased to around 20-25 per cent in more recent survey waves.
Some of the financial reasons given by people include becoming eligible for the Age Pension, receiving redundancy, superannuation rules making retirement advantageous, having the money to retire or relying on a partner’s income.
Back in 2003, health-related and job-related reasons were more prevalent, but in recent years, more retirees have reported financial factors as their main reason for leaving the workforce.
Improvements in health and life expectancy mean many people can work longer.
In fact, the typical Australian entering retirement today is financially better placed – particularly in housing and superannuation assets – than in the past.
But at the same time, housing costs, mortgage debt and family responsibilities like supporting adult children can mean some people delay their retirement.
In earlier decades, retirement was less common as a distinct life stage.
Business & Economics
The evolution of retirement living
If we look back, pensions provided only modest support, superannuation coverage was limited and poorer health meant shorter post-retirement lifespans.
Today, longer life expectancy and better health outcomes mean more of those years are spent in good health.
And that means most Australians expect to make an extended and more financially secure retirement.
The 20th Annual Statistical Report of the HILDA Survey lead author is Dr Inga Laß, with co-authors Dr Kyle Peyton, Professor Roger Wilkins and Dr Ferdi Botha.
The HILDA survey is managed by the Melbourne Institute of Applied Economic and Social Research at the University of Melbourne, and is funded by the Australian Government through the Department of Social Services.