There is now a lot more flexibility around when to leave work. Many people retire at around 60 or 65, but some are happy to work into their 70s and beyond. The world has changed.

Often, people reach a point where they want to spend more time with their grandchildren or pursue other interests, which becomes a catalyst for retirement.

The best age to retire depends on the individual. Some want to enjoy their retirement while ensuring they are fit and healthy. They don't want to be in a position where they are working into their 70s but can't enjoy retirement due to sudden health deterioration.

It is important to consider how you will fund your retirement well before you leave work for the last time. This means thinking through the retirement lifestyle you would like to enjoy many years beforehand.

Consider what your retirement future entails and how much money you're going to need for that. Take time early in your life, even in your 40s, to think this through. Some people start planning for their retirement when they get married in their 20s.

They never wanted to rely on the Age Pension and have always factored in saving for their future. But they also trusted their own judgment. If they wanted to buy a car, they ensured they could, but they also had their financial future in mind.

Often, people do not choose when they retire. Rather, circumstances force their hand, for instance, as a result of health issues or redundancy. According to a 2019 survey, 50 percent of Australians were influenced by work availability or health reasons when considering when to retire.

Unfortunately, many people don’t retire with the luxury of having sufficient funds to live the life they had expected. But, with adequate planning, it’s definitely achievable – you should aim to retire while you’re still young enough to enjoy it.

Building the Right Plan

To ensure you have sufficient funds in retirement, the first step is to map out a budget to work out how much money you’ll need to live on each year.

Also, think about any lump sums you may need, for instance, to pay for an overseas trip, a new car, or any renovations you may wish to complete on your home.

The Confidence to Spend

Finding ways to consume retirement savings safely and steadily over a lifetime is a priority for most retirees, people with a secure income for life have higher levels of financial comfort and the confidence to spend in retirement.