I had coffee with three Balmain locals last week – all around the same age (early 60s), all with similar super balances (~$700k), all asking the same question:
“When should I actually retire?”
Person A wanted to retire at 60. “I’ve worked 40 years. I’m done.”
Person B was planning for 65. “The traditional retirement age feels right.”
Person C was resigned to working until 67. “That’s when Age Pension kicks in. Might as well work until then.”
Same financial situation. Three completely different retirement timelines.
Here’s the thing: There’s no single “right” retirement age.
But there ARE real financial and lifestyle trade-offs between 60, 65, and 67.
Some people CAN retire at 60 comfortably. Others need to work until 67. Most fall somewhere in between.
So let me break down what each retirement age actually means – financially, practically, and emotionally – so you can make the right choice for YOUR situation.
“5 Signs You’re Ready to Retire”
This is when you can FIRST access your super (preservation age).
Key facts:
✓ You can access super at 60 (if you’ve stopped working)
✓ Super withdrawals are tax-free (if you’re 60+)
✗ No Age Pension until 67 (7-year gap)
✗ You need enough super to cover 7 years BEFORE Age Pension
✗ More years of retirement = need more total savings
The old “standard” retirement age (though it’s shifted to 67 for Age Pension).
Key facts:
✓ Super access for 5 years already
✓ Most people are genuinely ready to stop working by 65
✗ Still 2 years until Age Pension
✗ Need to bridge 2-year gap with super or part-time work
When Age Pension eligibility kicks in (for people born 1957 or later).
Key facts:
✓ Age Pension available immediately
✓ Less super needed (pension tops up income)
✓ Maximum financial security
✗ You’ve worked 7 years longer than the person who retired at 60
✗ Less time to enjoy active retirement years
Let’s start with early retirement. Can you actually pull it off?
If you retire at 60, you’re living entirely off super until Age Pension at 67.
That’s 7 years of zero government support.
Let’s model it:
Super at age 60: $700,000
Annual living costs: $62,000/year (comfortable Balmain lifestyle)
Years until Age Pension: 7
Total drawn from super: $62,000 × 7 = $434,000
Super remaining at 67: $700,000 – $434,000 = $266,000
(This assumes zero growth, which is conservative – realistically you’d have some investment returns offsetting drawdowns)
With more realistic 4% returns during drawdown:
Super remaining at 67: ~$350,000
Then at 67:
Super income (5% of $350k): $17,500/year
Age Pension (with lower assets): $40,000+/year
Total income at 67+: ~$57,500/year
Result: You’d live slightly more frugally in your late 60s+ compared to your 60-67 years.
“What $600,000 in Super Actually Buys You”
Retiring at 60 works if:
✓ You have $750,000+ in super
✓ You own your home mortgage-free
✓ You’re comfortable drawing down super significantly in your 60s
✓ You accept lower income in your 70s+ (but supplemented by Age Pension)
✓ You prioritize enjoying your healthy 60s over financial cushion
Sarah, Balmain local, retired at 60.
Super: $780,000
Home: Paid off
Her plan:
Age 60-67: Draw $58,000/year from super, travel extensively, enjoy peak health
Age 67+: Modest super income + full Age Pension, less travel, more local lifestyle
Her reasoning:
“I want to hike the Camino at 62, not 72. I want to travel Southeast Asia while I’m healthy. My 70s can be quieter.”
She made a conscious trade-off: Less financial buffer later for more experiences now.
Five years in, she has zero regrets.
✗ You burn through super faster (30-year retirement vs 23-year)
✗ More longevity risk (what if you live to 95?)
✗ More sequence-of-returns risk (market crash early hurts more)
✗ Less room for unexpected costs (health issues, family support)
✗ Harder to go back to work if you change your mind at 65
Age 65 is the “Goldilocks” retirement age for many Balmain locals.
Retiring at 65 gives you two extra advantages:
Let’s model it:
Super at age 65: $820,000 (same person, 5 years later with contributions)
Annual living costs: $62,000/year
Years until Age Pension: 2
Total drawn from super (age 65-67): $124,000
Super remaining at 67: ~$720,000 (after modest growth)
Then at 67:
Super income (5% of $720k): $36,000/year
Age Pension (part): $22,000/year
Total income at 67+: $58,000/year
Result: Similar income throughout retirement. More financial stability.
Retiring at 65 works if:
✓ You have $650,000-$850,000 in super
✓ You own your home mortgage-free
✓ You value financial security and stability
✓ You’re willing to work 5 more years than the person who retired at 60
✓ You can still enjoy retirement in your late 60s and 70s
Michael, Rozelle resident, planned to retire at 60 but worked until 65.
Why?
“I looked at the numbers at 60. I had $680,000. It was doable but tight. I decided to work five more years, boost my super, and retire with real comfort.”
Super at 65: $850,000
Home: Paid off
His result:
Age 65-67: $42,000/year from super
Age 67+: $35,000 from super + $23,000 Age Pension = $58,000/year
“I don’t regret working those extra five years. My wife was still working anyway. And now we have zero financial stress.”
Age 65 hits a nice balance:
✓ You’ve worked a full career (45 years if you started at 20)
✓ You’re young enough to enjoy active retirement
✓ Only a short gap until Age Pension kicks in
✓ Your super has had an extra 5 years to grow vs retiring at 60
✓ Less longevity risk (25-year retirement vs 30-year)
Age 67 is when Age Pension eligibility begins. Some people plan their entire retirement around this date.
Retiring at 67 means zero gap. Age Pension starts immediately.
Let’s model it:
Super at age 67: $900,000 (same person, 7 more years of contributions vs age 60)
Annual living costs: $62,000/year
Retirement income immediately:
Super income (5% of $900k): $45,000/year
Age Pension (part): $15,000/year
Total income at 67+: $60,000/year
Result: Maximum financial security. Stable income for life. Minimal drawdown risk.
Retiring at 67 works if:
✓ You have $600,000-$750,000 in super and want maximum security
✓ You have a mortgage until 67 and need to work to clear it
✓ You genuinely enjoy your work
✓ Health/mobility isn’t an issue (you’re confident you’ll be healthy enough to enjoy retirement at 67+)
✓ Financial security matters more than early retirement
Robert, Balmain local, worked until 67 despite having adequate super at 63.
His reasoning:
“I liked my job. I was senior enough that stress was low. I got 5 weeks annual leave and worked from home two days a week. Why rush to retire?”
Super at 67: $920,000
Result:
Stable $65,000/year income for life (super + Age Pension)
Zero financial stress
Large inheritance for his kids
But:
He gave up his early-to-mid 60s to work instead of travel
By 70, health issues limited his ability to travel extensively
The risk isn’t financial. It’s lifestyle.
Your 60s are different from your 70s.
At 62, you can hike, travel long-haul, be spontaneous.
At 72, you might face mobility issues, health concerns, less energy.
Working until 67 to maximize financial security might mean sacrificing the most active retirement years.
You can’t buy back your 60s.
“How the Age Pension Actually Works”
Here’s a strategy many Balmain locals miss:
Retire early (60-62) but work part-time (1-2 days/week) until 67.
Retire from full-time work at 60-62
Work 1-2 days per week doing consulting, contracting, or part-time role
Earn $15,000-$25,000/year from part-time work
Draw less from super (only $35,000-$40,000/year instead of $60,000)
At 67, stop work completely and add Age Pension
Age 60-67 (part-time work):
Super drawdown: $38,000/year
Part-time income: $18,000/year
Total income: $56,000/year
Age 67+ (fully retired):
Super income (from $540,000 balance): $27,000/year
Age Pension: $32,000/year
Total income: $59,000/year
Result:
You get most of the benefits of early retirement (freedom, flexibility, less stress)
But preserve more super for age 67+
Plus, part-time work provides structure and social connection
“Part-Time Work in Retirement”
✓ You’re burnt out from full-time work but not ready to stop completely
✓ You have marketable skills (consulting, contracting, advisory roles)
✓ You want early retirement freedom without burning through super
✓ You value the social/mental stimulation of some work
✓ Your super is in the $650,000-$800,000 range (borderline for full retirement at 60)
Everyone focuses on super balances and Age Pension.
But your HEALTH is the wild card.
If you’re healthy and energetic at 60, early retirement makes sense.
If you have health issues at 60, you might NEED to retire regardless of finances.
If you’re healthy at 67, working longer is fine.
If health deteriorates at 65, you’ll regret not retiring at 60.
You can’t predict health. But you can make educated guesses:
James and Helen, both 64, planned to work until 67.
James had a heart attack at 65. Forced into early retirement.
Helen’s reflection:
“We had enough super to retire at 62. We were just being cautious. Now James’s health limits what we can do. I wish we’d retired three years earlier when we were both healthy.”
They have the money. They don’t have the health to enjoy it fully.
Here’s how to choose YOUR retirement age:
Current super balance: $______
Projected balance at 60: $______
Projected balance at 65: $______
Projected balance at 67: $______
Annual retirement costs: $______
Retire at 60:
Retire at 65:
Retire at 67:
Don’t say “I’ll retire when I feel ready.”
Pick a date. Age 60, 63, 65, 67 – whatever.
Then plan backward:
Having a target makes retirement real instead of theoretical.
From my experience with hundreds of Balmain locals:
~20% retire at 60-62 (typically with $750k+ super or good part-time options)
~50% retire at 63-66 (the sweet spot – enough super, ready to stop, close to Age Pension)
~25% retire at 67 (financial caution, mortgage debt, or genuinely enjoy work)
~5% retire after 67 (health issues force it, or they love work)
The median Balmain retirement age: 64
Why 64?
It’s early enough to enjoy active retirement, late enough to build adequate super, and only 3 years until Age Pension.
Retiring at 60 isn’t reckless if you’ve planned for it.
Retiring at 67 isn’t cowardly if it gives you peace of mind.
The right retirement age is the one that balances:
Someone retiring at 60 trades financial cushion for time.
Someone retiring at 67 trades time for financial cushion.
Neither is wrong. They’re just different choices.
The worst choice? Drifting without a plan. Saying “I’ll figure it out later.” Working by default instead of by design.
Pick your age. Model the numbers. Make it happen.
Should you retire at 60, 65, or 67? The answer depends on your super, your Age Pension eligibility, your costs, and your priorities.
The One Page Financial Plan models all three retirement ages and shows you exactly what each one means financially and practically.
For $660 (inc GST), you’ll discover:
✓ Your income at age 60, 65, and 67 (super + Age Pension)
✓ The real trade-offs of retiring early vs waiting
✓ Whether part-time work from 60-67 makes sense for you
✓ A clear recommendation on YOUR optimal retirement age
✓ 100% satisfaction guaranteed
📧 Email: adam@suncow.com.au
📞 Phone: 0418 785 200
You’ve earned your retirement. Now make it count.
It’s a Tuesday morning in March 2020. You check your super balance before breakfast. It’s down $80,000 from last week. You’re supposed to retire in four months. Your coffee goes cold on the bench. This is the scenario that terrifies every pre-retiree in Balmain. Not the abstract idea of a market crash – but the …
Continue reading “What Happens to Your Income When the Stock Market Crashes?”
You’re 52. You check your super balance: $380,000. Your stomach drops. “That’s all? After 30 years of working?” Then you remember that article you read: “You need $1 million to retire.” Quick math: You need to more than double your super in 13 years. That seems… impossible. So you do what many Australians in their …
Continue reading “Building Your Financial Herd: Investment Strategy in Your 50s”
Imagine you inherit a dairy farm with 50 healthy cows. Each cow produces milk that you can sell for income. Together, they generate enough money to live on comfortably. Now imagine someone suggests: “Why don’t you sell five cows this year to buy a new truck?” Sure, you’d get the truck. But now you only …
Continue reading “Why Your Investment ‘Cows’ Should Never Be Sold in Retirement”
Information provided by Suncow Wealth is general in nature and does not take into consideration your personal financial situation. It is for educational purposes only and does not constitute formal financial advice. Remember, the value of any investment can go down as well as up. Before acting, you should consider seeking independent personal financial advice that is tailored to your needs. Suncow Wealth Pty Ltd is a Corporate Representative No.441116 of AFSL 342766.