If you’re nearing the end of your working years, you’ve probably asked yourself:
When is the best time to retire in Australia?It’s a question every Australian faces but the truth is, there isn’t one universal “perfect” retirement age.
The best time to retire depends on your financial readiness, superannuation balance, lifestyle goals, and eligibility for the Age Pension.
In this guide, we’ll help you understand the key factors that determine your ideal retirement timing so you can retire confidently and comfortably.
What Is the Average Retirement Age in Australia?
According to the Australian Bureau of Statistics (ABS), the average retirement age for Australians is around 65 years for men and 63 years for women.
However, many people choose to retire earlier or later depending on:
- Their superannuation savings
- Whether they’re eligible for the Age Pension
- Their health and personal circumstances
- The kind of lifestyle they want in retirement
Some Australians even choose semi-retirement, where they cut back on work hours rather than stop completely.
When Is the Best Time to Retire in Australia?
The best time to retire isn’t based on age alone it’s about timing your finances and lifestyle goals.
Here are the key factors to consider before you make that decision.
1. Your Preservation Age and Super Access
Your preservation age is the earliest age you can access your superannuation savings.
It depends on when you were born:
| 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 |
This means most Australians today can access their super at 60 provided they retire or meet another condition of release.
So, if you’re financially ready, 60 can be an ideal age to start transitioning to retirement especially if you’re not relying solely on the Age Pension.
2. Your Age Pension Eligibility
If you’re planning to rely partly on the Age Pension, you’ll need to wait until you reach 67 years old (as of 2025).This is when you can apply for government support but you must also meet residency, income, and asset test requirements.
For many Australians, this creates a “gap period” between 60 (when super becomes accessible) and 67 (when the Age Pension starts).
You’ll need to plan how to fund those seven years through super withdrawals, investments, or part-time work.
3. Your Financial Readiness
Retiring comfortably isn’t just about reaching a certain age it’s about having enough savings to support the lifestyle you want.
According to the Association of Superannuation Funds of Australia (ASFA):
- A single person needs around $595,000 in super to retire comfortably.
- A couple needs about $690,000.
However, you can still retire with less if you own your home, live modestly, and qualify for the Age Pension.
Ask yourself:
- How much income will I need per month?
- Will my super, investments, and pension cover it?
- Do I want to retire fully, or ease into part-time work first?
4. Your Health and Lifestyle Goals
Your health plays a big role in deciding when to retire.Many people choose to retire earlier to enjoy travel, hobbies, and active years while they’re still fit.Others prefer to keep working for social connection, structure, or a sense of purpose even if the financial need isn’t strong.
Tip: Think about what retirement means for you beyond money.
What do you want your days to look like? What brings you satisfaction?
5. Market and Economic Conditions
Sometimes, timing your retirement also depends on what’s happening in the economy and financial markets.
For example:
- If markets are strong, your super balance may be higher a good time to retire.
- If markets are volatile, delaying retirement or working part-time may help preserve your capital.
Economic factors like inflation, interest rates, and property prices can also influence your retirement timing and income needs.
Best Age to Retire in Australia by Scenario
Here’s a quick guide to what “best” might look like depending on your situation:
| Retirement Scenario | Ideal Age Range | Why It Works |
|---|---|---|
| Self-funded retirees (large super/investments) | 58–62 | Can access super early and retire comfortably without pension |
| Partial retirees (super + part-time work) | 60–65 | Access super, reduce work hours, maintain lifestyle |
| Age Pension reliant | 67+ | Access full pension and possibly part-time income |
| Health or lifestyle motivated | 55–60 | Retire early to enjoy active years, if financially viable |
How to Decide the Right Time for You
To decide your best time to retire, consider these steps:
- Calculate your ideal retirement income.
Estimate monthly expenses, travel, and leisure costs. - Check your super balance.
Use your fund’s calculator to estimate how long your super will last. - Understand your Age Pension options.
See if you’ll qualify at 67 and plan how to bridge the gap until then. - Consider part-time work or transition to retirement.
A Transition to Retirement (TTR) strategy lets you access some super while still working. - Get professional advice.
A retirement financial adviser can model scenarios and help you retire with confidence.
FAQs:
1. What is the official retirement age in Australia?
There’s no set “retirement age.” You can retire anytime, but you can access your super from 60 and apply for the Age Pension at 67.
2. Is 60 a good age to retire in Australia?
Yes, if you have enough savings or investments to fund the years before the Age Pension. Many Australians transition to part-time work around this age.
3. What’s the average super balance at retirement?
According to ASFA, the average super balance at retirement is around $360,000 for men and $290,000 for women though most retirees also rely on the Age Pension.
4. Can I keep working after 67?
Absolutely. Many Australians continue part-time work past pension age. It can even boost your super and supplement your income.
5. What’s the smartest way to retire early?
Start planning early maximise super contributions, reduce debt, and build diversified income sources before you stop working.
What Retirement Income Do I Need?
So, when is the best time to retire in Australia?The answer depends on your super balance, lifestyle goals, health, and pension eligibility.For some, retiring at 60 makes sense. For others, waiting until 67 provides extra security.
The key is to retire when you’re both financially and emotionally ready not just when you hit a number.
At Wealthlab, we help Australians plan their ideal retirement timeline balancing super, investments, and lifestyle priorities to make every stage rewarding.
Book a free consultation today to find your perfect time to retire confidently and comfortably.