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Not everyone gets the luxury of choosing when they retire.
Severe hearing loss forced Anthea White into early retirement, effectively ending her 30-year career as an accountant.
“It brought forward my departure from the workforce probably by about five years,” she tells ABC Radio National’s Life Matters.
“I hadn’t started planning my retirement, so it caught me unaware … I was quite angry and devastated that I didn’t leave on my own terms.”
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According to the Australian Bureau of Statistics, about 13 per cent of the 4.2 million who retired in 2022–23 cited illness, injury or disability.
But good health is just one piece of the retirement puzzle.
Retired psychologist and the author of Enjoying Retirement, Michael Longhurst, says a long-established work routine coming to an end often stirs emotions that can range from elation to terror.
“Was your retirement planned? Did you have time to get your finances in order or was it unplanned? Were you retrenched for some reason? If you were self-employed, was there a business failure or was it a health issue?” he says.
“The way the last day [of work] pans out is going to be affected by all these things.”
Mr Longhurst says that sometimes people “embark on what they feel is going to be a long holiday” when they retire and “that’s fine for a while”.
“[But] if they really loved their job and they loved what they were doing … instead of going through a honeymoon period, they may go through a feeling of divorce.”
So what are the practical steps you can take to get the retirement you want? And what can hold you back?
This article contains general information only. You should consider obtaining independent professional advice in relation to your particular circumstances.
Retirement looks different for everyone
The solution to a good retirement is building a sense of purpose in your life, Mr Longhurst says.
For retiree Marilyn Manning, that meant pursuing her love for adventure.
At 78, Marilyn Manning has only just started slowing down. (Supplied)
A midlife crisis in her 50s prompted her to pivot from her 30-year career in advertising to working as a tour leader in India, which she did for six months of the year. She supplemented her income with agency cleaning and telemarketing when she was back home.
Now 78, she’s finally stepping back after 20 years leading small group tours of India with mainly middle-aged women and retirees.
“I’m a bit of a goer, and I just saw people getting old long before they should have,” she says.
“I’ve had some amazing adventures and got up to a few larks over the years, and I’m not ready to stop doing that.
“I just want to keep the Alzheimer’s away and I want to live to 100 minimum.”
When Norm Walker stopped work at 64, he promptly set sail, travelling Australia’s coastline on his catamaran.
The idea came to him in his late 30s while building a boat for family holidays.
“I loved it and thought, ‘This is the way I’m going to retire … this is the way I’m going to finish my life.’ And here I am.”
Norm worked for himself and had no superannuation, but he did own his own house.
Norm Walker posts his adventures sailing around Australia on his YouTube page called Motor Sailing for Old Dudes. (Supplied)
“When we sold the property … I put it straight into super, so I’ve ended up with really good super, which was a bit lucky,” he says.
But if you’re not like Norm and don’t own your home, the path to retirement might feel uncertain.
The importance of financial planning
Whether you are in your 20s or your 60s, retirement should be something to keep an eye on, says James Wrigley, a financial planner.
Topping up your super gradually is preferable to a sudden burst of top-ups in the immediate lead-up to retirement.
“Even if it’s $20 or $50 or $100 a pay [packet] … a little bit over a long time adds up significantly,” Mr Wrigley says.
“If you leave it too late, chances are you’re probably not going to have the spare cash to actually get those big numbers to help you have a comfortable retirement.”
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About 17 million Australians currently have a super account, according to Australian Superannuation Funds of Australia (ASFA).
But when it comes to super balances, women retire with far less. In 2023, ASFA reported that the median super balance for women was about 25 per cent lower than for men.
Just over 30 per cent of retired women rely on their partner’s income to meet their living costs, compared to just 8 per cent of retired men.
ASFA also recommends that a single person who owns their own home needs $33,386 a year to maintain a modest lifestyle during retirement, while a couple requires $48,184 a year.
A renter who is single needs $46,663 a year, while a couple needs $64,259.
A good retirement can depend on a variety of things, including access to housing. (ABC News: John Gunn)
What does modest mean? According to ASFA, it includes basic private insurance, an older car, infrequent leisure activities, budget haircuts, limited outings at inexpensive restaurants and keeping a close eye on utility costs.
“It’s possible to fund retirement through part age pension and part your own money,” Mr Wrigley says.
But it is “far more challenging” if you don’t own your own home and must pay rent.
“That throws a different set of complications that need to be dealt with,” he says.
‘Keeping well and keeping social’
Exercise and a sensible diet are essential for good health but, according to Nancy Pachana, the co-director at the Ageing Mind Initiative at the University of Queensland, paying attention to our mental health and social network is just as vital to achieving a good retirement.
Joanne Earl says you should allow yourself the luxury of easing into retirement. (Supplied)
“Not having a good social network will have a greater impact on your health, in many cases, than not exercising. And people don’t realise this,” Professor Pachana says.
“Some people who do experience social isolation are at greater risk of physical decline and a greater risk for dementia.”
Joanne Earl is an organisational psychologist from Macquarie University who specialises in retirement planning. She says being in control is key.
“A lot of people will just be focused on how much money they’ve got, but they need a wider lens to think about not just the money, but what they’re going to be doing after they retire,” she says.
“The two key things are keeping well and keeping social, [and also] recognising it doesn’t have to be all or nothing.”
She says people can choose to retire in their own time.
“Allow yourself the luxury of just easing into it, rather than it being a real sort of shock to the system.”
Greg Noonan retired earlier this year at the age of 56.
Greg Noonan stopped working in January of this year and recently enjoyed his 100th day of retirement. (Supplied)
His advice for anyone who has just finished work is simply to be patient.
“Pay heed to the emotion that’s involved in the whole process. [And] be kind to yourself,” he says.
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