Planning for your retirement

When can I retire?

Here are a few key questions that are worth asking yourself (and your spouse) that could help you narrow down when the right time to retire might be:

1. Work situation: Do you enjoy working and would prefer to gradually transition into retirement through part-time employment? Do you want to consider other jobs before you retire?
2. Timing: Do you and your partner have the same shared retirement goals? When will you reach your preservation age or qualifying age for the Age Pension? Could any health concerns or financial issues impact your retirement timing?
3. Lifestyle: Where do you see yourself living in retirement? How will you stay active, and what activities do you want to do?
4. Finances: Do you have any existing debts? Could you afford a modest or comfortable lifestyle with your estimated super balance at retirement? Consider these factors"
   • whether you own your own home or rent
   • if you have any existing debts
   • will you make any big purchases (plane tickets, a caravan etc.)

When can I access my super?

The biggest factor affecting when you can access your super is your preservation age, which is simply the minimum age at which you can access your super. The preservation age is 60 years old, and you will be able to access your super if you’re 60 or older and one of the following conditions apply:

• you’ve permanently retired from the workforce
• you’ve ceased an employment arrangement on or after the age of 60
• you’ve started a Transition to Retirement strategy
• turned 65, regardless of whether you’re still working or not.

Other rules may apply to your situation. For more information, please visit our Accessing your Super page.

You may also want to factor in your eligibility for the Government Age Pension. Certain criteria are involved, including asset tests and income tests. You must be aged 67 to qualify for the Government Age Pension. 

Where can I source my retirement income from?

• Super balance - For most Australians, your biggest income source in retirement will be from the balance of your super fund.  Understanding how much you have in super and what options you may have is important. If you are a Rest member you can check your balance online or via the Rest app. From there you can also explore some of the digital tools.
• Account-Based Pension (ABP) - Opening an account-based pension allows you to remain invested whilst taking out your super bit by bit as a regular income.
• Government age pension - The age pension is a government payment that pays you an income when you're older, if eligible. It may support your super balance and help cover basic living costs after you've stopped working. There are a number of eligibility requirements to see whether the government age pension applies in conjunction with your super.
• Your other financial assets - Your savings and other assets outside of super, such as shares, managed funds, and investment properties may help provide you with an income in retirement.
• Downsizing - If your home feels too big, selling it and buying a smaller one may give you extra money to boost your retirement nest egg, as you and your spouse may be able to make a downsizer contribution into your super.