Can I Retire at 65?
At 65, superannuation is generally accessible even if you continue working. This creates flexibility, but the decision to retire should still be based on your income needs, lifestyle and ability to fund the years ahead.
Review All Sources of Retirement Income
Your retirement income may come from several places. Looking at them together can help you avoid relying too heavily on one account or investment.
- Account-based pension payments
- Cash and term deposits
- Managed investments, shares or property income
- Employment or business income
- Potential government entitlements from age 67
Prepare for the Two Years Before Age Pension Age
Age Pension age is 67, so retiring at 65 can still require a bridging strategy. Even at 67, payment is not automatic. Eligibility depends on the applicable rules, including means testing and residency requirements.
Balance Income, Security and Growth
Retirement can last many years. Holding too much in cash may reduce short-term market risk but can expose savings to inflation and lower long-term returns. Holding too much in growth investments may create more volatility than you are comfortable with. The appropriate balance depends on your goals, spending needs and capacity to tolerate market movements.
Consider Housing and Future Care
Your home may support your preferred lifestyle, or it may become more costly and difficult to maintain. If downsizing is being considered, look beyond the sale price. Allow for moving costs, the suitability of the new home, proximity to family and services, and possible superannuation, tax or social security implications.
Review Estate Planning Arrangements
Retirement is a useful time to check your Will, enduring powers, superannuation beneficiary nominations and the way assets are owned. Legal advice may be required to make sure documents reflect your wishes.
Questions to Ask Before Retiring at 65
- What income will I need until age 67 and afterwards?
- How will my super and non-super assets work together?
- Is my cash reserve sufficient for larger expenses?
- Is my investment mix suitable for retirement?
- Does my home still suit my future needs?
- Are my estate planning arrangements current?
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General Advice Warning
The information in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Before making any financial decisions, you should consider whether the information is appropriate for your circumstances and seek professional financial advice tailored to your individual situation.
Ready to Talk About Your Retirement?
Retirement looks different for everyone. A personalised retirement plan can help you understand your options, identify potential gaps and make informed decisions about your future.