Whether your dream retirement involves travelling around Australia or simply reconnecting with family and friends, it’s a good idea to have a plan.
But knowing the ins and outs of retirement can be complicated. If you’re not sure how much you’ll need, or what age you should retire, we’ve got you covered.
- People are retiring later: In 2023 the average retirement age in Australia for men was 66 and for women 65 years old11
- Australians are living longer, which means they could have a longer retirement to fund. In 2019–2021, it was forecast that2women aged 65 could expect to live to the age of 88, and men aged 65 could expect to live to the age of 85.
- More Australians are “unretiring”: between 2019 and 2022 more than 179,000 people over the age of 55 came out of retirement3. The biggest drivers were financial need and boredom and needing something to do.4
Learn more about super and retirement planning with Rest’s Retirement Guide.
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:
- 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?
- 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?
- Lifestyle: Where do you see yourself living in retirement? How will you stay active, and what activities do you want to do?
- 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.
How much will I need vs how much will I have?
Understanding how much super you'll need versus what you currently have saved is crucial for retirement planning, and it all starts with knowing your retirement goals. Take time to think about what kind of lifestyle you can realistically afford, as this may influence how much you’ll need in your super fund.
For example, the Association of Superannuation Funds of Australia (ASFA) estimates that, assuming you own your own home outright, the cost of a comfortable retirement at age 67, as at June 2024, is $73,337 p.a. for couples and $52,085 p.a. for singles. This allows for funds to cover daily needs, health care, leisure activities, and occasional international trips. To generate this annual income from your super, couples will need $690,000 and singles $595,000 in Super.
Keep in mind that these amounts are significantly higher compared to what ASFA calls a “modest” retirement (living slightly above the Age Pension), with superannuation savings of just $100,000 required for both couples and singles. The ASFA retirement standard is updated quarterly.
To know if your super is on track to meet your goals, check out our handy Retirement lifestyle budget calculator.
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.
How Rest can help
Rest’s Advice team
Rest’s Advice team is all about helping make retirement easier by building a plan to meet your retirement goals. Our team of qualified financial planners may provide you with simple, personal advice at no additional cost. For more complex financial advice, a fee may be involved.
Rest members digital tools
Rest members can access helpful Rest digital tools to help get your super and retirement planning on track including:
Retirement Health Check
Retirement Health Check is a 5-minute assessment, which will provide you with a projection on how much income you could have each year in retirement, and if you are on track.
If you don’t know where to start this may guide you in fine-tuning your super across contributions, beneficiaries, tax considerations, insurance coverage, and investment choices to better secure your financial future.
Rest members have access to Rest’s Retirement Health Check and Super Health Check anytime*
Watch our Simplifying Retirement: Planning Made Easy webinar
What we cover in the webinar:
- Income in retirement: We discuss the most common income sources that could be available in retirement.
- Introducing the Age Pension: We break down what the Age pension is and who's eligible.
- How to access your super: We chat about the different ways you could withdraw money from your super.
- Boosting your super: There are some simple ways to make a difference to your final retirement balance.
- Getting started and getting help: We share the tools and support available to Rest members so you can start your planning journey with confidence.
