How do you know when to retire?
Updated on 12 March 2025 | 3 minute read
The best age to retire depends on factors like your age, savings, super balance, and lifestyle. We'll help guide you to answer this big question.
What's the best age to retire?
According to the Australian Bureau of Statistics (ABS), most Aussies are planning to retire between their 65th and 66th birthdays. You can retire at any age, but it'll likely depend on a few personal factors:
- Your health
- Where you want to live, and if you own your home (no mortgage)
- Your financial situation and how much savings or super you have
- The lifestyle you want in retirement.
Unplanned retirement
Sometimes, retirement comes knocking earlier than we expect. Health issues, family needs, or changes in the job market might nudge us towards retirement sooner than planned. In fact, the ABS found that only about a third of Aussies retire because they've hit retirement age or can access their super. The rest are adapting to life's twists and turns.
Funding your retirement
When planning your retirement, think about how you'll fund it: through your super, the Age Pension, or a combination of both. Don't forget to factor in any other savings or investments you might have.
Age Pension
The Age Pension is income support from the government for older Australians. The current age to access the Age Pension is 67, and it's subject to eligibility.
Your superannuation
Generally, you can tap into your super balance when you turn 60. If you're already over 60, you might be able to access it now.
How long will your super last?
Find out how long your superannuation balance might last in retirement with our retirement calculator.
How to use your super when you retire
Once you're eligible to take out your super, you can access it as an income stream, a lump sum withdrawal, or a combination of both. This will probably depend on whether you're winding down working, or if you're already retired.
At Australian Retirement Trust, we have several retirement income options:
Transition to Retirement Income account
Regular payments from your super while you're still working.
Retirement Income account
Regular payments from your super when you retire.
Lifetime Pension
Tax-free payments for the rest of your life, and you can combine with an Income account.
Does your super need a boost?
One way to retire earlier is to have more in your super account sooner.
Making personal contributions to your super can make a huge difference to how much you have when you stop working.
FAQs
Check in regularly
As you plan for your retirement, it's important to review your circumstances and goals regularly. You could do things like:
Review your financial situation, including your super, savings, and any debts.
Reevaluate your goals for retirement, including the lifestyle you want and how much it might cost.
Consider making extra contributions to grow your super balance.
Talk to a professional financial adviser about your retirement plans.
Stay flexible and adjust your plans as your circumstances change.
Retire with ART
Planning for your ideal retirement doesn't have to be stressful. We've put together our best tips to start your retirement plan today.
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