Working less or retiring?

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Work out how much money you’ll need

If you are getting ready to work less or retire, it’s important to think about how much money you will need. Moneysmart can help you understand things like super, the Age Pension and how to plan your finances.

It is:

check_box Free to use

check_box Easy to understand

check_box From the Australian Government

How to make a budget

Plan a budget

When you work less or retire, your spending can change. While you may save on work costs and transport, you may find yourself spending more on your home or healthcare.

Making a budget can help your money last longer.

How much money will you need?

Some people plan, as a rough guide, to have about 70% of their working income once they retire.

Knowing how much you need starts with knowing what you have. When you work less or stop working, you may still have income. This is usually from:

• superannuation (super)
• the Age Pension
• other savings and investments
• other payments from the government.

The amount you need also depends on how you want to live. For example, some people:

• travel often
• spend more with family
• spend more time at home
• enjoy local activities.

How much you need will be different if you own your home or rent. Thinking about your lifestyle can help you find out how much you need.

Make a budget

Use Moneysmart’s budget planner.

• Track how much you earn and spend.
• See how much you need to retire.
• Find ways to save.

Learn more about super

What is super?

Super is short for superannuation. It is a way of saving for retirement.

• In Australia, if you’re over 18, your employer must pay money into your super account while you work.
• It is 12% of your earnings. Some employers pay more.
• If you are self-employed you may need to pay it yourself.
• You can access this money when you retire.

How much super do you need?

When can you access super?

You can access super when you are 60 if you stop working or leave a job or if you open a transition to retirement account while you’re still working. Everyone can get to their super from 65, whether they’re working or not. There are some special circumstances (English) where you can access your super early.

Prepare your super

Small things you do now can make a difference when you work less or retire. You can:

• check your super balance
• make sure your contact details with your super fund are correct
• find any lost super and consolidate your super funds
• add extra money, if you can.

How you can use your super

There are different ways to use your super once you’ve reached the age of 60 and are eligible to access it. You may choose to:

• leave it in your super account where it can grow
• turn your super into a regular payment, like a salary
• withdraw money for things like gifts or holidays.

You can do one or all of these. Your choices can affect how long your money lasts.

Start your super planning today

Use Moneysmart’s super calculator.

• Calculate how much super you could have.
• See how long it could last.
• Find out how to make it last longer.

Find out about the Age Pension

What is the Age Pension?

The Age Pension is paid by the Australian Government. It is financial support for eligible older Australians.

Who can get the Age Pension?

To get the Age Pension you must:

• be 67+ years old
• be an Australian resident who has lived here for 10+ years
• meet income (English) and asset (English) tests.

You may still qualify for a part pension if you own your home, have savings and super.

Some people who receive the Age Pension may also get:

• a Pensioner Concession Card
• discounts on medicines
• discounts on public transport
• help with bills.

In retirement, you may also be eligible for rent assistance and other government assistance. To learn more, visit the Services Australia website (English).

Super and the Age Pension

You can combine super and the Age Pension to support you at different stages of retirement. For some people, super is their main income once they retire. For others, it’s the Age Pension, and super helps top it up.

Your mix can change over time.

Making a retirement plan

Start your retirement planning

Now that you’ve worked through your spending, the choices you can make with your super, and your government assistance opportunities, it’s time to try the retirement planner.

The Moneysmart retirement planner can help you to:

• estimate how much income you will have in retirement
• check if you are on track to achieve your retirement goals
• create a retirement plan.

Stay on track

By using the information and tools on this page, you’ve taken the first steps to get ready for your future. You should now know how to:

check_box Make a budget for your life.

check_box Find ways to make your super last longer.

check_box Check if you can get the Age Pension.

check_box Find out how much money you may have when you retire.

To make sure your plan stays on track, try to:

• check your super balance regularly to see how it’s tracking and to make sure your employer is paying it to you
• reduce your debts
• be careful of scams, like phone calls or ads that suggest you move your super
• check information from a trusted source before making a decision.

Downloadable resources

Television commercial videos

These television commercials use familiar, real-life moments to prompt people to start planning for retirement, and direct them to Moneysmart for practical next steps.

Social media

These social media messages encourage people to learn more about retirement in a simple, engaging way.

Factsheet

A bi-Lingual retirement factsheet. Designed to help people understand the basics of planning for retirement. Factsheets can be printed or shared digitally.

Infographic

This infographic is a visually-led journey to help people understand the steps they can take to prepare for retirement.

Animations

Animated videos with closed caption translations that answer some common retirement questions.

Stakeholder toolkit

An easy-to-share resource that includes key information and links to available translated and English assets.

Need more information?

Moneysmart has more free tools, explainers and resources in English. Read more.