Retiring at 62 is one of the most common goals Australians bring to a financial planner, and one of the most misunderstood. The question is never just “do I have enough?” It’s “how long does it need to last, what does the five-year gap to the Age Pension cost me, and what lifestyle can I realistically expect at each balance level?”
This guide answers all of those questions with real numbers across a range of super balances, from $350,000 to $700,000, so you can see where you actually stand without wading through a page built around a single dollar amount.
What Retiring at 62 Actually Means in Australia
At 62, most Australians have already passed their preservation age (60 for anyone born after 1 July 1964) and can access their super tax-free, provided they have retired or ceased an employment arrangement. So the access question is settled for most people.
The harder question is the five-year gap to Age Pension eligibility at 67.
During that window, your super is doing all the work. There is no government income support unless you qualify for JobSeeker or a Disability Support Pension on other grounds. Every dollar of your annual spending between 62 and 67 comes entirely from your own balance. That changes the maths significantly compared to retiring at 65 or 67, where the Age Pension kicks in relatively quickly.
The two key numbers for planning:
- Age Pension eligibility: 67 (for anyone born on or after 1 January 1957)
- Current full Age Pension: approximately $29,000 per year for singles, $43,700 per year for couples combined (from March 2026, including all supplements)
Source: Services Australia: Age Pension rates (Current as at May 2026)
Please note: All figures, projections and scenarios in this article are for general illustration only. Individual outcomes depend on personal circumstances, spending levels, investment returns, fees and government policy. This is general information, not personal advice.
How Long Will Your Super Last? A Range of Scenarios
The table below shows estimated years of funding for a single homeowner retiring at 62, drawing from super at three spending levels, before the Age Pension starts at 67.
These figures use a conservative net return assumption of approximately 5% per year (after fees and investment tax), which reflects a balanced investment option in retirement.
| Super balance | $25,000/yr spending | $35,000/yr spending | $45,000/yr spending |
|---|---|---|---|
| $350,000 | ~18 years (to age 80) | ~12 years (to age 74) | ~9 years (to age 71) |
| $450,000 | ~25 years (to age 87) | ~16 years (to age 78) | ~12 years (to age 74) |
| $550,000 | ~35+ years | ~21 years (to age 83) | ~15 years (to age 77) |
| $650,000 | ~35+ years | ~27 years (to age 89) | ~18 years (to age 80) |
| $700,000 | ~35+ years | ~30+ years | ~21 years (to age 83) |
What these numbers don’t show: From age 67, the Age Pension supplements your super drawdown, meaning your super lasts considerably longer than these estimates suggest. A single homeowner drawing $35,000 per year who reaches 67 with $200,000 remaining in super will likely receive a part Age Pension of $10,000 to $20,000 per year on top of their drawdown, extending their runway by a decade or more.
The real planning question is not “when does my super run out?” but “what is my combined income from super and the Age Pension at each stage of retirement, and does it match what I actually want to spend?”
See how you can retire at 62 with $445K comfortably, wisely, and confidently.
The 62-to-67 Bridge: Your Most Important Planning Period
The five years between retiring at 62 and Age Pension eligibility at 67 is the period where your balance does the most work and faces the most risk.
If you retire at 62 spending $35,000 per year, you will draw approximately $175,000 from your super before the Age Pension begins. That is $175,000 that never earns investment returns, never compounds, and permanently reduces what the Age Pension will supplement at 67.
Strategies to manage the bridge period:
Draw conservatively in years one to five. If your spending needs are flexible, keeping drawdowns closer to the account-based pension minimum (4% of balance per year for under-65) preserves more capital for the period when Age Pension support begins. A $450,000 balance at 4% drawdown generates $18,000 per year, which is tight but manageable for a homeowner with no debt.
Consider part-time or consulting income. Even modest income of $10,000 to $15,000 per year during the bridge period reduces the strain on your super significantly. It does not have to be full-time work to make a real difference to your balance at 67.
Keep your super invested in a growth-oriented option. Many Australians switch to a conservative investment option when they retire, assuming it is “safer.” In reality, a 62-year-old’s money may need to last 30 years. Moving entirely to cash or conservative bonds reduces returns significantly over that horizon. A balanced or moderate growth option is typically more appropriate. Scott covered this in Episode 1 of the Wealthlab Podcast: being too conservative in early retirement is one of the most common and costly mistakes Australians make.
Convert to an account-based pension on day one. Do not leave your balance in accumulation phase after you retire. In pension phase, investment earnings are completely tax-free (compared to 15% in accumulation). This alone adds meaningful return each year.
What Lifestyle Does Each Balance Support at 62?
Here is a practical guide to what each balance range realistically funds for a single homeowner retiring at 62.
$350,000 to $450,000
This range supports a modest to mid-range lifestyle, particularly for a homeowner with no debt. Annual spending of $25,000 to $32,000 is sustainable, covering essentials, basic health cover, a modest car and occasional domestic travel. From 67, the Age Pension fills a larger share of spending needs as the balance reduces.
This is below the ASFA comfortable benchmark of $630,000 for singles, but it is not as dire as that gap sounds. Many Australians in this range live genuinely comfortable retirements because they own their home, have no debt, and have the Commonwealth Seniors Health Card reducing their healthcare costs significantly once they meet the income threshold.
$450,000 to $550,000
This range funds a more comfortable lifestyle, with annual spending of $32,000 to $42,000 sustainable for most of retirement. It allows private health insurance, a reliable car, annual domestic holidays and occasional interstate travel. From 67, a part Age Pension supplements the drawdown, extending the balance further.
For couples, $450,000 to $550,000 combined is tighter: the ASFA comfortable benchmark for couples is $730,000. Couples in this range would typically draw more modestly and rely on a meaningful Age Pension contribution from 67.
$550,000 to $650,000
For a single homeowner at 62, this range is close to the ASFA comfortable benchmark and can fund the comfortable standard ($54,837 per year for singles) for most of retirement. The balance at 67 will still be substantial, qualifying for a part Age Pension rather than the full pension, but creating a combined income of $55,000 to $65,000 per year that is genuinely comfortable.
$650,000 to $700,000 and above
At this range, a single retiree at 62 is well-funded for a comfortable retirement. Annual spending of $45,000 to $55,000 is sustainable for the full retirement horizon, with the Age Pension supplementing income from 67 as the balance naturally draws down. Couples at this combined balance are similarly positioned well.
The Age Pension Interaction: Why It Changes Everything After 67
Most Australians think of the Age Pension as something you either get or don’t get. In practice, it operates on a taper rate that gradually reduces the pension as your assets increase, meaning almost everyone retiring at 62 with moderate super will receive something from 67.
Current thresholds (from March 2026, homeowners):
| Full pension threshold | Part pension cut-off | |
|---|---|---|
| Single | Up to $321,500 in assets | Up to ~$695,500 in assets |
| Couple combined | Up to $481,500 in assets | Up to ~$1,045,500 in assets |
If you retire at 62 with $450,000 and draw conservatively, you may reach 67 with $300,000 to $350,000 remaining. At that level, a single homeowner qualifies for a meaningful part Age Pension, potentially $15,000 to $20,000 per year, which dramatically extends how long the remaining balance lasts.
This is why the “will my super run out?” question misses the point. For most Australians, the correct question is: “what will my combined super drawdown and Age Pension income be at each stage of retirement, and how does that track against what I want to spend?”
Phil and Dan walked through real case studies on this in Episode 10 of the Wealthlab Podcast: “How the Age Pension Really Works”, including how small decisions about timing and structure affected Centrelink entitlements by tens of thousands of dollars.
What to Do in the Five to Ten Years Before Retiring at 62
If you’re 52 to 57 and planning to retire at 62, this is your highest-impact planning window. The decisions made in these years have more effect on your retirement outcome than any decisions made after you stop working.
Maximise catch-up contributions. If your total super balance is under $500,000 and you haven’t used your full concessional cap in recent years, you can carry forward unused amounts from the past five years and contribute on top of the current $30,000 annual cap. Unused amounts from 2020/21 expire permanently on 30 June 2026. Check your carry-forward balance in myGov now. Episode 7 of the Wealthlab Podcast covers this in detail: “The Superannuation Tax Strategy Most Australians Underuse.”
Salary sacrifice as much as possible. At a 37% marginal tax rate, each $10,000 of salary sacrifice saves approximately $2,200 in tax while adding to your super. Over five years, maximising salary sacrifice can add $30,000 to $50,000 to your balance beyond what the employer SG alone would produce.
Pay off all debt before you retire. Particularly the mortgage. Entering retirement with no housing costs is the single most powerful factor in making a modest balance work. Your home is also completely exempt from the Age Pension assets test, regardless of its value, which improves your Centrelink position at 67.
Review your investment option. If you are in a conservative or balanced option and have five or more years to retirement, moving to a growth or high-growth option in the years before retirement (and then moderating on exit) can meaningfully improve your end balance. Get proper advice before making changes.
Consider your partner’s super if you have one. If your partner has significantly less super than you, using contribution splitting or spouse contributions to equalise balances can improve your combined Age Pension eligibility and maximise the tax-free pension phase for both of you. See our guide on can couples combine super in Australia.
Should You Retire at 62 or Work a Few More Years?
The financial case for working longer is strong. Every extra year of contributions at peak salary, combined with one fewer year of drawdown, adds meaningfully to your end balance.
As a rough guide, working one extra year at $80,000 with 12% SG and salary sacrifice:
- Adds approximately $9,600 in employer SG
- Adds investment returns on the existing balance for one more year (roughly $22,500 on a $450,000 balance at 5%)
- Avoids approximately $35,000 in drawdown spending
- Combined effect: approximately $65,000 to $70,000 improvement in the balance at retirement
That difference compounds over the remaining retirement horizon. One additional year of work at 62 can be worth 3 to 5 additional years of retirement funding.
The counter-argument is equally valid. Health, energy and the years when you can most actively enjoy retirement are finite. Retiring at 62 in good health gives you active retirement years that working to 65 does not. As Scott discussed in Episode 19 of the Wealthlab Podcast, the spending wave of retirement peaks in the early active years, drops in the mid-years, then rises again with healthcare costs. Deferring retirement to build a larger balance can mean missing the years when you’d actually spend and enjoy it most.
This is a personal decision, not a financial one. The numbers are a framework, not an answer.
Frequently Asked Questions
Can I access my super at 62 in Australia?
Yes. For anyone born after 1 July 1964, preservation age is 60. At 62, you have already passed preservation age, meaning you can access your super provided you have retired from the workforce or ceased an employment arrangement. Withdrawals after age 60 from a taxed super fund are completely tax-free.
How much super do I need to retire at 62 in Australia?
It depends on your spending and lifestyle expectations. As a guide: $350,000 to $450,000 supports a modest retirement for a single homeowner; $450,000 to $550,000 supports a comfortable mid-range retirement; $550,000 to $650,000 is close to the ASFA comfortable benchmark of $630,000 for singles. Couples need more in combined terms given the higher ASFA benchmark of $730,000. These figures assume home ownership. Renters need substantially more.
What is the Age Pension age in Australia?
67 for anyone born on or after 1 January 1957. If you retire at 62, you need to self-fund five years before Age Pension eligibility. Planning for this bridge period is the central challenge of retiring at 62.
Will I get the Age Pension if I retire at 62 with super?
Not immediately. The Age Pension is available from 67, subject to the assets and income tests. However, most Australians retiring at 62 with moderate super will qualify for at least a part Age Pension at 67, once their balance has been drawn down over five years of retirement. The assets test thresholds for homeowners mean a single person with under $695,500 in total assets will receive some pension.
What is the best way to retire at 62 in Australia?
Convert your super to an account-based pension immediately on retirement (do not leave it in accumulation phase). Draw conservatively in the years before 67 to preserve as much capital as possible for the Age Pension phase. Keep your super invested in a balanced or moderate growth option rather than switching to cash. Clear all debt, particularly the mortgage, before stopping work. Get advice on how to structure assets to maximise Age Pension eligibility at 67.
Can I work part-time after retiring at 62?
Yes. Retirement at 62 after accessing super does not prevent you from returning to work at any point. Any new employer contributions are preserved until you cease that employment or turn 65. Part-time work during the 62-to-67 bridge period can significantly reduce the strain on your super during those years.
What happens if I run out of super before I turn 67?
If your super balance reaches zero before you reach Age Pension age, you will need to rely on other income or assets, or consider returning to work. If you have no income and limited assets, you may qualify for JobSeeker. For anyone approaching this scenario, advice on managing drawdowns and centrelink entitlements is critical before it becomes a crisis.
How does owning my home affect retirement at 62?
Your principal residence is completely exempt from the Age Pension assets test, regardless of its value. This means a homeowner with $450,000 in super and a home worth $900,000 is assessed only on the $450,000 for pension purposes. It also eliminates rent or mortgage as an ongoing expense, significantly reducing the annual income you need from super.
Work Out Where You Actually Stand
The numbers above are a framework. Your actual retirement picture depends on your balance, your spending habits, your partner’s position, whether you own your home and your health.
The free Wealthlab super calculator gives you a personalised projection in about two minutes, showing how your balance tracks at different drawdown levels and what the Age Pension adds at 67.
If you want a full retirement income plan, not just a projection, book a free chat with the Wealthlab team. No obligation. Just clarity on where you stand.
