Which Australian states are attracting the most retirees?
Over 75,000 Australians have flocked to Queensland as they make the transition to retirement, according to the Australian Bureau of Statistics (ABS).
The state has seen the highest increase in retirees between 2018–19 and 2020–21, with some 40 per cent of its 830,000 population of people aged 45 years and over now retired.
Previous research into average superannuation balances in the state found it was highest in the Sunshine Coast ($198,610). This was followed by Brisbane ($183,247), Townsville (184,758) and Toowoomba ($179,613).
Meanwhile, the states with the highest proportion of retirees remained Tasmania (48.5 per cent of population aged 45 years and over) followed by South Australia (45 per cent) and NSW (41 per cent).
Additionally, although Queensland was growing in popularity as a retirement destination, the ACT had the highest increase in proportion of retirees (32 per cent to 37 per cent).
It is also the state with the highest average superannuation balances of some $254,000, which has been attributed, at least in part, to a higher density of public sector workers and government officials working in the ACT, who would typically see 15 per cent employer super contribution rates compared to 10.5 per cent for other workers.
Per ABS data, people intend to retire at 65.5 years, which is largely unchanged since its last survey in 2018–19 (65.6 years).
Some 140,000 people retired in 2020, when the average age of retirement was 64.3 years. For men, the average age was 65.4 years and for women the average was 63.7 years.
Over 670,000 people intend to retire in the next five years, with 220,000 in the next two years.
Of those who intend to retire, 37 per cent (1.7 million) do not know when they would retire from the labour force, down from 40 per cent in 2018–19.
Over half (56 per cent) of retirees are 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,” the ABS noted.
Looking at super, the number of people who reported receiving a lump sum payment from a super scheme increased from 540,000 to 870,000 between 2018–19 and 2020–21.
Much 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.
The ABS highlighted 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.
Government pension remained as the main source of income for most retirees.
More people retired with super as a source of income, but the increase was greater for men than women.
Last month, the government’s 2023 Intergenerational Report found that, as balances increase, super will become the primary source of retirement income for many future retirees. Drawdowns are estimated to rise from around 2.4 per cent of GDP in 2022–23 to 5.6 per cent of GDP in 2062–63.
Meanwhile, the proportion of people with accounts in the retirement phase, from which they are drawing a superannuation pension, will increase from 8 per cent in 2022–23 to 19 per cent in 2062–63.
Spending on government age and service pensions is projected to fall from around 2.3 per cent of GDP in 2022–23 to 2 per cent of GDP in 2062–63.
AUTHOR
Rhea Nath
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
As a co-author of several editions of Where To Retire In Australia (independently researched, and we;'ve actually travelled/travel to over 200 locations around Australia), it needs to be said that the ABS told me last week that the latest 'The Retirement and Retirement Intentions survey doesn’t ask about interstate migration, so we can only comment that there was a rise in the number of retirees, *not what caused the rise* .
It is likely to be some combination of Queenslanders retiring and retirees moving to Queensland'.