Stop now – or keep working?
Retirement at 67 is often seen as the default, but is it really the best choice for everyone? Helen, who turns 67 in April, is weighing up her options. She has $275,000 in superannuation, $25,000 in personal assets, and $10,000 in cash. She earns $68,000 working part-time and receives a UK pension of $9,800 per year. She enjoys her work and isn’t in a hurry to stop, but she also wants to make sure she’s financially secure.
So, should Helen retire now or keep working part-time for a few more years? Let’s explore her options. Helen’s dilemma is a great example of the diverse experiences and attitudes of many Retirement Essentials members. Some can’t wait to finish working so they can have new experiences and adventures. Others are genuinely loving their work and want to transition to a retirement lifestyle while keeping their options open.
What happens if Helen retires now?
If Helen chooses to retire at 67, she will become eligible for the Age Pension, which, combined with her UK pension, will cover a significant portion of her living expenses. However, her superannuation will need to fund the remainder of her outgoings, including her mortgage repayments.
Some key factors to consider:
- Superannuation drawdown: Helen will need to start drawing from her super to supplement her income. Modelling different withdrawal rates will help her see how long her super might last.
- Mortgage repayments: Helen could use a lump sum from her super to pay off the mortgage, but this would significantly reduce her retirement savings. Alternatively, she could continue making repayments, balancing her budget carefully.
- Travel and lifestyle: Helen loves to travel. Retiring now means she’ll need to plan how to fund her adventures while ensuring she doesn’t deplete her super too quickly.
What if Helen continues working part-time?
If Helen keeps working part-time, she can maintain her current lifestyle while boosting her financial security.
- Superannuation growth: By delaying withdrawals, her super remains invested and continues to grow.
- Mortgage payoff: Contributing an extra $200 per week to her mortgage would allow her to pay it off five years earlier, reducing future financial pressure.
- Age Pension eligibility: If Helen’s income remains above the Age Pension threshold, she may not qualify immediately, but as she reduces work hours in the future, she can reassess her eligibility.
- Greater flexibility: Continuing part-time allows Helen to keep her routine, stay socially connected, and ease into retirement on her own terms and at her own pace.
What did Helen do next?
Helen doesn’t need to retire at 67. Given her preference to stay part-time and the financial benefits of doing so, continuing to work for a couple more years could be the best approach. If she later decides she’s ready to retire, she can do so knowing she’s maximised her options.
Life stage matters as much as your age
Retirement isn’t just about reaching a certain age. It’s about making a choice that aligns with your lifestyle, financial situation, and personal goals. The move from work to retirement is also a highly emotional transition. Taking time to get this right is often the wisest course and going part-time can work really well. Before deciding, it’s worth modelling different scenarios to see how they affect your long-term security.
Helen’s appointment involved information and guidance on Age Pension eligibility, maximising entitlements while drawing down super, and weighing up the pros and cons of getting rid of her mortgage. Working with a Retirement Essentials adviser in a Retirement Forecasting consultation allowed her to see her options, and compare different spending and working scenarios.
What about you?
Are you planning to retire at 67, or do you see yourself working longer?
What’s your biggest consideration – financial security, lifestyle, or something else?
For many the decision isn’t just about finances – it’s also about lifestyle, purpose and peace of mind. Taking the time to explore different options can make all the difference.
If you’d like to better understand how your super, Age Pension, and other assets could support your ideal retirement, a Retirement Forecasting consultation can help. Retirement Essentials advisers provide clear personalised insights – without product recommendations – so you can feel confident about your next steps.
This article is provided by Retirement Essentials Representative Number: 001260855. We are an authorised representative of SuperEd Pty Ltd ABN 88 118 480 907 AFSL #468859. This information is not intended as financial product advice, legal advice or taxation advice. It does not take into account your personal situation, goals or needs and you should assess your own financial situation, consider if the information is suitable for you and ensure you read the relevant Product Disclosure Statement (PDS) if you choose to make any changes to your financial situation. It is always advisable to consult a financial adviser before making financial decisions.
poor Helen she cannot retire as the stock market is about to take a big portion of her
superannuation with the global crash coming superannuation is such a mine field
for mums and dads i wish i never entered into super real-estate would have been the best option as i would have had control of my money
I hear you, Paul—market volatility can be unsettling, especially when retirement is on the horizon. Geopolitical events, like wars or global pandemics, can disrupt markets, and while superannuation carries investment risk, it also offers tax benefits, diversification, and flexible income options. Real estate can be a great asset too, but it comes with its own risks, like market downturns, maintenance costs, and liquidity issues. The key is managing risk in a way that suits your retirement goals. If you’re feeling uncertain, Retirement Essentials offers a consultation to help you assess your risk tolerance and investment strategy. You can book HERE: [https://retirementessentials.com.au/understanding-investing/]