When to retire
There’s no set retirement age in Australia, so you can retire when it’s right for you. Your health, family, finances and work opportunities could all play a part in your retirement strategy.
In relation to your super, retirement generally means you’ve either:
- reached your preservation age, are no longer employed and don’t intend to work again for more than 10 hours a week
- turned 60 and no longer working.
Sources of retirement income
Super and the government Age Pension are the most common sources of retirement income. If you have other income sources like savings and investments speaking to a financial adviser will help you plan your income.
You can usually retire and access your super any time after you reach your preservation age (between 55 and 60, depending on your birth date). Generally, you can withdraw it or draw a regular income from it with a pension account.
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Find your preservation age
Your preservation age according to your birth date.
If you were born Your preservation age is Before 1 July 1960 55 1 July 1960 - 30 June 1961 56 1 July 1961 - 30 June 1962 57 1 July 1962 - 30 June 1963 58 1 July 1963 - 30 June 1964 59 1 July 1964 or after 60 You may also be able to access your super in special circumstances.
How much you’ll need
How much is enough? It depends on the kind of retirement lifestyle you’d like. Your everyday living expenses are likely to be less in retirement, but things like travel, home renovations and medical costs could affect how much you’ll need.
If you own your home, are in good health and aged around 65, the Association of Superannuation Funds of Australia estimates:
- couples will need about $63,000 a year for a comfortable retirement and $44,000 to live modestly.
- Singles, will need around $45,000 for a comfortable retirement and $29,000 to live modestly.
These estimates are based on figures from the June quarter 2021.
The maximum government Age Pension pays around $38,000 a year for couples and $25,000 for singles, so your super can be an important source of income in retirement.
Work out how much super you'll have
Retirement calculator
Use our calculator to estimate how much super you’ll have when you retire and how long it’ll last.
Pension income calculator
See how much your yearly income could be.
Looking like you'll need more?
If you'll depend on your super in retirement, your investment choice is one of the most important decisions you'll make.
Remember, your super can keep earning money throughout your retirement, so it pays to understand your investment options.