The Old and the Beautiful: When to Retire?

If you’re thinking about retirement but still feel energised and curious about life, you’re not alone. Australians are living longer, staying healthier, and reimagining what retirement means in the 21st century.

While the traditional retirement age used to be a hard stop at 65, today’s retirees are working longer, transitioning gradually, or returning to work part-time for social connection, income, or purpose. So when is the right time to retire—and what should you consider before making the leap?

Australia’s Retirement Landscape in 2025

As of 2025, the Age Pension eligibility age has officially risen to 67. Life expectancy continues to increase—averaging around 81 for men and 85.5 for women—so planning for a retirement that could last 25+ years is more important than ever.

At the same time, Australia’s ageing population is putting pressure on the economy. Fewer working-age people are supporting more retirees, leading governments and economists to encourage longer workforce participation where possible.

Support for Older Australians Who Want to Keep Working

If you’re nearing retirement age but not ready to stop working completely, the Australian Government offers programs to support continued workforce participation, such as:

• Mature Age Hub – resources for job seekers aged 45 and over
• Work Bonus – lets Age Pension recipients keep more of their income if they choose to work
• MyFuture.gov.au – tools to explore new career options or study pathways

Programs like these make it easier to stay engaged in the workforce or reskill into flexible or part-time roles.

Retirement Doesn’t Have to Be “All or Nothing”

Many Australians find full retirement challenging—not financially, but emotionally. Work offers more than a pay cheque: it gives routine, purpose, social connection, and identity. In fact, the rise of “unretirement” or post-retirement employment is growing as older Australians find traditional retirement unfulfilling.

Marguerite and Michael’s Story

Marguerite, a former secretary, and her husband Michael, a former CEO, both retired at 60—but quickly returned to work. Marguerite took on part-time work at Murdoch University. Michael became a TESOL teacher and marriage celebrant, combining flexibility with passion.

“I like working—I’m not a homebody,” says Marguerite. Michael agrees: “I went mad with doing nothing for five minutes, then became a celebrant. I love it.”

Planning for a Retirement You Can Afford

Superannuation remains the backbone of retirement income for most Australians. But for many, the balance may not be enough to sustain a comfortable lifestyle for 25+ years.

According to ASFA’s Retirement Standard, a single person aiming for a comfortable retirement in 2025 needs around $51,000 per year. Couples need about $72,000. But due to career breaks, part-time work, or wage inequality, many retirees—especially women—fall short of these targets.

That’s why some retirees turn to part-time jobs, small businesses, or remote contract work to top up their income, stay mentally active, or fund their lifestyle goals.

David’s Story: Retirement on His Own Terms

David, a retired engineer, relocated to regional Victoria and bought a small farm. When farming proved financially tight, he earned his certification to work as a pilot escort (not the flying kind!)—guiding oversized transport vehicles across Australia. Now in full retirement, he still maintains his farm, volunteers with the Rotary Club and local fire brigade, and stays active outdoors.

“Anyone who retires should have interests and goals. If you’re healthy, working a bit longer or staying involved in your community is a good thing,” says David.

How to Retire Well—On Your Terms

Whether you want to work less, change careers, or explore a new lifestyle, here’s how to plan your retirement transition:

• Explore flexible roles: Teaching, consulting, aged care, or small business ownership are great options for mature workers. Consider reskilling with an online course that fits your lifestyle.
• Stay financially informed: Use tools like MoneySmart’s Retirement Planner to model your super, pension, and income needs.
• Stay socially and mentally engaged: Volunteer, join local clubs, or explore creative hobbies that keep you connected and fulfilled.