Print PageRetire later
Generally, you can access your super when you turn age 60 and leave your employer, or slightly earlier if you were born before 1 July 1964. However, working for a few extra years, even part time, can make a big difference to your retirement lifestyle.
Giving yourself more time
If you’re not on track to meet your retirement savings goal, one option is to retire later. This means you:
- have more time to save for retirement
- postpone drawing on your super, giving your money more time to grow
- may be eligible for the government’s mature age tax offset once you’re age 55, worth $500 pa. See the Australian Taxation Office's mature age worker tax offset overview for details.
Take a look
If you earn $100,000 pa and have $400,000 in super at age 60, you can expect an annual retirement income of $28,520 pa. By delaying your retirement until age 65, you’ll end up retiring with $498,370 in super, providing an annual retirement income of $34,751 pa.
Source: MoneySmart Superannuation Calculator
Why not check the difference retiring later can make to your retirement with the government’s MoneySmart Retirement Planner.
Retirement trends
If you decide to retire later, you won’t be alone. While the current average retirement age for recent retirees is 61 years1, this is expected to rise, especially as the government is increasing the pension age to 67.
According to the Australian Bureau of Statistics1, 41% of full-time Australian workers plan to switch to part-time work before they retire and more money for retirement isn’t the only motivation. For many, part-time work is a way of keeping their minds active, giving their lives structure and purpose and gaining contact with other people. To top it off, a recent US study2 found people who retire early don’t live as long as those who keep working past age 60.
1 Australian Bureau of Statistics, Retirement and Retirement Intentions, Australia, July 2010 to June 2011
2 British Medical Journal, Age at retirement and long term survival of an industrial population: prospective cohort study, 21 October 2005
Get advice
Sorting out your money for retirement can be hard. AUSCOAL Advice can help you work out the best options for you from just $110.
Call 1300 AUSCOAL (1300 287 262) for an obligation-free chat.
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