16 July 2024
Having to retire before you expect can upset your retirement plans. There’s the surprise, worry about having enough money or maybe you’re embracing the moment.
If you’re retiring earlier than planned, it’s comforting to know you’re not alone. According to the Australian Bureau of Statistics, Australians retire on average 9 years earlier than expected. While 65.4 is the average age people plan to retire, 56.9 is the actual average age people retire1.
Here are some actions you can take to help you feel confident in your early retirement.
Review your current financial position
How's your super balance looking? Taking stock of your super balance now that you’ve stopped working is a good first step.
As you’re reviewing your finances, here are a few things to consider in addition to your super:
- any savings you have
- any debts you may have, such as a credit card or home loan
- income from personal investments such as shares or property
- your eligibility for the Government Age Pension.
Calculate your living expenses
Now that you know your financial standing, it’s a good idea to calculate your living expenses. This helps you estimate how much you’ll need to spend each year going forward. Retirement expenses can include rent, bills, food, entertainment, holidays, insurance, home or car repairs, and health expenses.
It can be hard to know how much super is enough to last you in retirement, or if your savings will give you the lifestyle you want. Use our super projection calculator to see how much income you could have in retirement.
TRY THE SUPER PROJECTION CALCULATORCan you access your super now?
You can access your super when you reach 60 years of age and retire. The meaning of ‘retire’ depends on your age and how and when you finished work:
- If you’re 60-64:
- You stopped working permanently, or
- You stopped working for any employer after you turned 60.
- If you’re 65 or older: you can access all your super, even if you’re still working.
In some cases, you may be able to access your super before you retire. This could be due to financial hardship, compassionate grounds, or becoming permanently disabled.
Even if you meet the conditions to access your super, it’s important to consider how an early withdrawal could impact:
- your retirement income
- any tax you may need to pay
- insurances paid through your super
- any government benefits you’re receiving.
Check any insurance you have
If you’ve stopped work due to illness or injury, you may be eligible to claim insurance, if you have it. You could have cover through your super fund2 or with an external provider.
LEARN MORE: INSURANCE IN YOUR SUPER GUIDEThe benefits of financial advice
When you’ve retired earlier than planned, you might need to rely on your super for longer. This may seem daunting, but speaking to a financial adviser can help you understand your situation and organise your finances. And it’s never too early or late to start planning.
AustralianSuper members have access to several education and advice options available, including retirement webinars. We also offer members access to different types of advice to suit the level of help you’re looking for. This ranges from over-the-phone simple super advice3 to putting you in touch with a qualified financial adviser for comprehensive advice4.
References:
- ABS Retirement and Retirement Intentions, Australia, for 2022-23 financial year, released 22/05/2024
- AustralianSuper insurance is provided by TAL Life Limited (the Insurer) ABN 70 050 109 450, AFSL 237848.
- There’s no charge for general advice about your super account. The financial advice you receive will be provided by Link Advice Pty Limited ABN 36 105 811 836, AFSL 238145 and will be their responsibility. Personal product advice provided may attract a fee, which will be outlined before any work is completed and is subject to your agreement.
- Personal financial product advice is provided under the Australian Financial Services Licence held by a third party and not by AustralianSuper Pty Ltd. Some personal advice may attract a fee, which would be outlined before any work is completed and is subject to your agreement. With your approval, the fee for advice relating to your AustralianSuper account may be deducted from your AustralianSuper account subject to eligibility criteria.
This may include general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision consider if the information is right for you and read the relevant Product Disclosure Statement, available at australiansuper.com/PDS or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/TMD.