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 and can postpone drawing on your super, giving your money more time to grow.
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 $30,443 pa until age 90. By delaying your retirement until age 65, you’ll end up with an annual retirement income of $36,849 pa until age 90.
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 61.5 years1, this is expected to rise, especially as the government intends to increase the pension age to 70.
According to the Australian Bureau of Statistics1, 40% of full-time Australian workers plan to switch to part-time work before they retire, which includes working on a contract basis and working more hours from home, 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.
2 British Medical Journal, Age at retirement and long term survival of an industrial population: prospective cohort study, 21 October 2005