When is the best time to retire?
It’s a question that most Australians eventually ask and for good reason.After years of working, saving, and planning, deciding when to retire is one of the most important financial choices you’ll ever make. But there’s no single right answer the best time to retire depends on your lifestyle, financial readiness, superannuation, and what you want from life after work.
Let’s explore the key factors that help you decide the perfect time to retire practically, financially, and emotionally.
Understanding the Best Time to Retire
The best time to retire isn’t just about age. It’s about when you’re financially prepared and emotionally ready to leave full-time work.
In Australia, most people retire between 60 and 67, but some choose to stop earlier if they’ve built enough savings or reached financial independence. Others prefer to keep working longer for structure, purpose, or income stability.
Before making the decision, it’s worth looking at the two main milestones that affect retirement timing:
- When you can access your superannuation
- When you qualify for the Age Pension
When Can You Access Your Superannuation?
Your super is designed to support your retirement but you can’t access it whenever you like.
The earliest you can access it is when you reach your preservation age and meet a condition of release (like retiring from work).
Preservation age chart:
| Date of Birth | Preservation Age |
|---|---|
| Before 1 July 1960 | 55 |
| 1 July 1960 – 30 June 1961 | 56 |
| 1 July 1961 – 30 June 1962 | 57 |
| 1 July 1962 – 30 June 1963 | 58 |
| 1 July 1963 – 30 June 1964 | 59 |
| After 1 July 1964 | 60 |
So, if you were born after July 1964, you can generally access your super from age 60, as long as you retire.
That’s often the first point when retirement becomes a real possibility for Australians.
When Can You Receive the Age Pension?
If you plan to rely partly on the Age Pension, your timing may depend on when you become eligible.As of 2025, the Age Pension age is 67 for everyone born on or after 1 January 1957.This means that even if you retire earlier, you’ll need enough savings or super to support yourself until you reach that age.
Many Australians choose to retire around 60–65, using their super for income until the Age Pension becomes available at 67.
Financial Readiness: The Real Answer to “When Is the Best Time to Retire?”
Your age is just one factor. The real question is whether you’re financially ready.
Here’s what to assess:
- Superannuation balance – Do you have enough to fund the lifestyle you want?
- Debts – Have you cleared your mortgage and major loans?
- Expenses – Do you have a clear picture of how much you’ll need each month?
- Income streams – Will you rely on super alone, or will you have investments, part-time work, or the Age Pension?
According to the ASFA Retirement Standard (2025), a comfortable retirement requires around:
- $50,000–$55,000 a year for singles
- $70,000–$75,000 a year for couples
If your super and savings can provide that income (through returns, pensions, or drawdowns), you’re likely ready to retire regardless of age.
Lifestyle and Emotional Readiness
Financial readiness is crucial, but emotional readiness matters too. Many people underestimate how big a life shift retirement can be.
Ask yourself:
- What will my days look like without work?
- Do I have hobbies, interests, or volunteer work I want to explore?
- Am I retiring from something I dislike, or to something I’m excited about?
Some Australians find a phased retirement works best reducing hours gradually before stopping entirely. This gives you time to adjust both financially and mentally.
Health and Timing Considerations
Your health can also play a major role in deciding when to retire.
If your job is physically demanding or you’re dealing with health issues, retiring earlier might improve your quality of life.
On the other hand, if you enjoy your work and it keeps you mentally active, continuing for a few more years can have benefits beyond financial ones.
A good rule of thumb: don’t delay retirement so long that you’re too tired to enjoy it.
Working Part-Time or Semi-Retiring
Retirement doesn’t have to be all or nothing.
Many Australians are now semi-retired working part-time or freelancing to stay active while supplementing their income.
You can even draw income from your super while continuing to work using a Transition to Retirement (TTR) pension, which lets you access up to 10% of your super each year once you reach preservation age.
This can make your move into retirement smoother and more flexible.
Common Mistakes When Deciding When to Retire
- Retiring too early without enough savings to cover 20+ years of expenses.
- Ignoring inflation and healthcare costs, which rise faster than general expenses.
- Not having a plan for daily purpose and routine.
- Overestimating Age Pension support, which only provides a modest income.
A little planning before you leave work can prevent these pitfalls and make retirement more enjoyable and stress-free.
Key Takeaway: The Best Time to Retire Is When You’re Ready Financially and Personally
So, when is the best time to retire?
The ideal time is when your super, savings, and lifestyle goals align usually between 60 and 67 for most Australians.
If your super can provide a steady income, you’ve cleared your debts, and you’re ready to embrace life beyond work, you’re in a strong position to retire confidently.
At Wealthlab, we help Australians find their retirement sweet spot combining smart financial planning with lifestyle goals so you can retire on your own terms.
Book a free consultation today and let’s design a retirement plan that fits your life, not someone else’s timeline.
Learn More About Retirement & Superannuation
https://www.servicesaustralia.gov.au/who-can-get-age-pension?
https://www.ato.gov.au/api/public/content/0-74828496-dead-4b1a-8503-ffbe95d37398?