The big question
When can I retire?
Retirement age is a personal decision. Most people retire once they can access their super and/or the Age Pension. An early retiree under 55 years of age is not able to access superannuation or the Government Age Pension so another source of income is needed. People aged 55-64 years may be able to implement a transition to retirement strategy.
How to retire early
How many times have you asked yourself, "Ugh, when can I retire?"
Early retirement is an attractive dream for many Australians, but there are plenty of factors to consider when thinking about leaving work early. When thinking about how to retire before 55, the first thing you’ll need to be sure of is that you have an independent source of appropriate income, as you won’t be able to access your super or the Age Pension. Look at your passive income (e.g. investment income) and determine if it’s enough for you to live off comfortably.
To work out how long you need to fund yourself, check out the When can I access my super gadget.
How to retire at 55-60 years
Most Australians will be able to access their super between the ages of 55 and 60 years (depending what year they were born), but that doesn’t mean you’ll need to retire from full-time work straight away. Instead, you can wind down your working hours and begin accessing some of your super via a transition to retirement (TTR) strategy.
TTR lets you ease back on the number of hours you work without reducing your income, by tapping into part of your super early to top up your wage. Plus there may be tax benefits.
It lets you enjoy the best of both worlds… but you’ll still need to work out how much you’ll need to live comfortably as you won’t be able to access the Government Age Pension until you’re at least 66.
How to retire with the Age Pension
Currently, the Government Age Pension is available from 66 years, but this age is set to rise progressively to 67 years by 1 July 2023. See how the Age Pension works and what the eligibility requirements are.