Can I Afford To Retire?

Once you reach your preservation age you can access your super, so you have a number of options available to you, for example:

  • You can stop work and use your super to maintain your lifestyle.
  • You can work part-time and convert all or part of your super to a ‘pre-retirement pension’.
  • You can carry on working full-time and continue to accumulate money in super. Once you’re over age 60, lump sum withdrawals and pension income payments are tax free.

Do I have enough super to stop work?

The decision to retire permanently largely depends on whether you have the financial resources available to last the rest of your life (which could be over twenty years). Especially since you probably won’t be able to access the age pension until you’re 63.5 (women) or 65 (men). Working out how much super you need to retire on is a good idea. Try out our super calculator to get an idea. If you think you might have enough and want to retire soon, there are some strategies you can use to save some tax.

Work part-time and access your super at the same time

If you don’t have sufficient money to permanently retire or you want to keep working, a pre-retirement pension is an option if you’re over 55 and under 65. It allows you to convert your super into a regular income stream, but doesn’t allow you to take lump sum withdrawals until you’re fully retired. You can also continue to contribute (using salary sacrifice) back into your super to maintain or even grow your super balance for when you retire permanently.