Australia
Worked in Australia? Any pension you built up here is yours to keep and can usually be paid to you abroad — but you have to claim it; it won't start automatically. The full state pension age is 67, with early access from 60. On totalization, Australia has bilateral totalization agreements, so the years you worked here may combine with other countries you've worked in. Below is Australia's system at a glance and what expats should check.
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Overview
Australia operates a three-pillar retirement income system.
The first pillar is the Age Pension — a means-tested, tax-funded government payment available to residents aged 67 or older who satisfy residency and income/assets tests. As of March 2026, the maximum full Age Pension is AUD 1,200.90 per fortnight for singles (including supplements), indexed twice yearly to the highest of CPI, PBLCI, or MTAWE. Over 60% of Australians above pension age receive either a full or partial pension.
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The second pillar is the Superannuation Guarantee (SG) — a mandatory employer-funded defined-contribution scheme. From 1 July 2025, the SG rate reached its final legislated level of 12% of ordinary time earnings. Contributions are preserved until a condition of release is met (generally retirement at or after preservation age 60, or unconditionally at age 65). The Transfer Balance Cap is AUD 2.0 million (2025–26). From 1 July 2026, 'Payday Super' will require employers to pay SG with each pay cycle rather than quarterly. Division 296 tax — an additional 15% on earnings attributable to super balances above AUD 3 million — was legislated in March 2026 and takes effect from 1 July 2026 (first assessment year 2026–27).
The third pillar consists of voluntary superannuation contributions, including salary sacrifice, personal deductible contributions (concessional cap AUD 30,000/year for 2025–26, rising to AUD 32,500 from 1 July 2026), and non-concessional contributions (cap AUD 120,000/year, rising to AUD 130,000 from 1 July 2026). Self-Managed Super Funds (SMSFs) are available but carry strict residency requirements for non-residents. Australia has 32 active international social security agreements, with a 33rd (Uruguay) signed in August 2025 and expected to enter into force in 2026.
<30% (mandatory schemes, average earner, OECD Pensions at a Glance 2025). Net replacement rate also under 35% for average earners from mandatory schemes. Australia pays relatively small benefits to average earners but closer to OECD average for low-income workers.
Pillar 0/1: Age Pension (means-tested, tax-funded, universal for eligible residents). Pillar 2: Superannuation Guarantee (mandatory employer DC contributions, 12% from 1 Jul 2025). Pillar 3: Voluntary superannuation contributions (salary sacrifice, personal deductible, non-concessional, SMSFs, downsizer contributions).
Multi-pillar: means-tested universal state pension (Beveridge-influenced) + mandatory private defined-contribution superannuation (Bismarckian-influenced) + voluntary supplementary savings
Employee
No mandatory employee contribution to super. Voluntary salary sacrifice permitted within concessional cap (AUD 30,000/year 2025–26).
Employer
12.0% (from 1 July 2025, final legislated rate)
Self-Employed
No mandatory SG obligation for self-employed sole traders or partnerships. May make voluntary concessional or non-concessional contributions.
Notes
SG rate reached final 12% from 1 July 2025. From 1 July 2026, 'Payday Super' requires employers to pay SG with each pay cycle instead of quarterly. Division 293 tax: additional 15% on concessional contributions where income + super contributions exceed AUD 250,000. Carry-forward rule: unused concessional cap from prior 5 years available if total super balance <AUD 500,000. Division 296 tax on super balances >AUD 3M: legislated March 2026, effective 1 July 2026 (first assessment 2026–27); 15% additional tax on earnings attributable to balance above AUD 3M (effective 30% total); 25% additional (40% total) above AUD 10M. Thresholds CPI-indexed. Concessional cap rises to AUD 32,500 and non-concessional cap to AUD 130,000 from 1 July 2026.
Common questions
What is the retirement age in Australia?
The full state pension age in Australia is 67. Early retirement may be possible from 60.
Can I claim a Australia pension if I live abroad?
Yes. A pension you've earned in Australia stays yours wherever you retire, and can usually be paid into an overseas account once you reach pension age. It won't start automatically, though — you need to claim it, typically a few months in advance, through Australia's pension authority.
Do totalization agreements affect my Australia pension?
Australia has bilateral social-security (totalization) agreements. These can let you combine the years you worked in Australia with years in partner countries to meet a minimum qualifying period, so short stints aren't wasted. Which partners and rules apply depends on your own work history.
How is the pension system structured in Australia?
Multi-pillar: means-tested universal state pension (Beveridge-influenced) + mandatory private defined-contribution superannuation (Bismarckian-influenced) + voluntary supplementary savings Pillar 0/1: Age Pension (means-tested, tax-funded, universal for eligible residents). Pillar 2: Superannuation Guarantee (mandatory employer DC contributions, 12% from 1 Jul 2025). Pillar 3: Voluntary superannuation contributions (salary sacrifice, personal deductible, non-concessional, SMSFs, downsizer contributions). It includes 3 schemes in our directory.