If you’re not on track to meet your retirement savings goal, one option is to retire later. This means you:
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.
See the difference retiring later could make to your retirement income
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.
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