Planning for life after work

When will you retire? 

There’s no set age for retirement. When you retire depends on your finances, health and personal situation, such as family and lifestyle.

When planning for retirement, it’s a good idea to set a loose deadline such as ‘in five years’ or ‘when I pay off the mortgage’. It doesn’t have to be set in concrete, but having a timeframe in mind will help you plan ahead financially and emotionally.  

What income will you have in retirement? 

How much money you have in retirement will significantly impact your retirement lifestyle. 
For most of us, your retirement income will be a combination of super and the Age Pension. You might also have some savings or investments, such as an investment property or shares.

Accessing your super

You can access your super when you retire and reach 60 years old.. Once you reach 65, you can access your super even if you're still working. 
Once eligible, you can access through:

• Our Flexible Income option
• a lump sum
• a combination of both

You may want to consider a transition to retirement strategy, where you access some of your super before retiring. This is a good option to ease into retirement or boost your super savings through extra contributions and tax savings before retirement.  

Government benefits

From age 67 , you may be eligible for government benefits such as:

• Age Pension
• pensioner concessions
• health care benefits
• tax offsets 

The kind of pension and benefits you're entitled to generally depends on your age, assets and income.

Centrelink has a dedicated older Australians line that can help with questions about the Aged Pension and other benefits.  Call them on 132 300 between 8am and 5pm Monday to Friday. 

Retirement Essentials: Extra help for getting your Age Pension application sorted

Retirement Essentials is an organisation set up to help you apply for the Age Pension. Their licensed team of experts offer different levels of support including:

• Free Age Pension eligibility calculator.
• Centrelink application concierge service. This helps with filling in forms and applying for the Age Pension. The cost of this service will vary between $335 and $965 based on the complexity of the application¹.
• Seniors health card application support. The cost of this service will vary between $225 and $395 based on the complexity of the application*.

Visit the Retirement Essentials website for more information. 
 

How much do I need to retire?

According to the most recent ASFA Retirement Standard (March 2024), you’ll need the following amount of super to have a comfortable retirement if you retire at 67:

• Comfortable lifestyle for a couple: $690,000
• Comfortable lifestyle for a single person: $595,000

What bills and expenses will you have?

You might have stopped working, but the bills will keep coming in retirement. When planning for life after work, consider costs such as:

• Housing — rent or mortgage, rates, home and contents insurance, maintenance costs
• Utilities — electricity, gas, water, phone, internet, streaming services
• Food — fresh food, groceries, takeaway, dining out
• Clothing and household goods — clothing, personal care, furniture, household appliances
• Health and leisure — health insurance, health care, social activities, fitness, holidays, gifts
• Transport — car registration, insurance, fuel, public transport

Remember, retirement can last 20 years or more, and your spending needs and habits will likely change over time. For example, you may spend more in the first years of retirement as you indulge in hobbies, socialise, travel or renovate your home. This spending will likely decrease as you get older, and your healthcare expenses will likely increase.

Where will you live? 

Where you live in retirement will affect your finances and lifestyle. Different suburbs, cities and regions have with different living costs (housing, transport, food) and varying levels of access to services and amenities, such as health and aged care, public transport, internet services and social and sporting clubs. 

When choosing where to live in retirement, consider your needs and priorities. How much can you afford? How do you want to spend your days? How will you get around? Do you want to be near friends and family? How’s your health, and how much will you rely on healthcare and related services?

What type of house you live in also makes a difference. If you’re still living in the family home, a big house that requires regular cleaning and maintenance may not be appropriate for an aging couple. Selling your house and downsizing to a smaller unit or apartment may be simpler and more convenient. It could also help you boost your super balance through a downsizer contribution. 

Health and mental wellbeing 

For some, stopping work can be a positive change full of excitement and possibility. For others, it can be a daunting transition that results in a loss of identity and sense of purpose.

While many of us focus on having enough money to retire, being ‘retirement ready’ mentally, emotionally and physically is essential to help you fully embrace and enjoy life after work. 

Some tips to help prepare for this transition include:

• Set realistic expectations and goals — understand your financial, physical and emotional needs.
• Think beyond work — start pursuing meaningful goals outside your career before you retire. This includes hobbies, new interests and community engagement.
• Maintain social and support networks — stopping work can lead to isolation and loneliness. Make time to connect with friends and family for a strong support network.
• Stay active — make physical exercise part of your daily routine to embrace all the benefits of retirement, such as travel, hobbies, and getting out and about.
• Keep your mind engaged — read, write, paint, learn a language, visit museums and galleries. Keeping you mind sharp will help you embrace life beyond work.  

Estate planning

You should consider making sure your will and power of attorney are up-to-date, so your assets are distributed according to your wishes.
Unlike your other savings and assets, super isn’t automatically included in your will, so you may want to consider nominating one or more beneficiaries so it goes to who you want. 

1* If you use this service, you will make your payment directly to Retirement Essentials and not to CareSuper. Retirement Essentials is a service provided by Retirement Essentials Pty Ltd. Retirement Essentials Pty Ltd is a separate and independent entity to CareSuper and CareSuper will not be responsible for the nature or quality of services provided by Retirement Essentials Pty Ltd.
CareSuper has no involvement in the provision of the above services and is not responsible for the nature or quality of those services. CareSuper does not recommend or endorse the above services or receive any financial benefit if you choose to use these services. Members who choose to use any of the above services do so at their own risk based on their own enquiries and on the terms and conditions, including as to your privacy, on which those services are provided by the third party to the member. CareSuper respects your privacy and does not supply your personal details to these third-party service providers.