Yes, you can generally retire at 62 and work part-time, but rules depend on your country (likely Australia or US based on results) and if you're accessing super/pension; in Australia, a Transition to Retirement (TTR) pension allows access while working, while "permanent retirement" has work limits (e.g., <10 hrs/week), but you can usually access super by genuinely ceasing employment and starting a new role or taking TTR; in the US, earning above a certain limit before your full retirement age can reduce Social Security benefits, so check with advisors.
You can get Social Security retirement or survivors benefits and work at the same time. However, there is a limit to how much you can earn and still receive full benefits. If you are younger than full retirement age and earn more than the yearly earnings limit, we may reduce your benefit amount.
The biggest retirement mistake is often failing to plan adequately, which includes underestimating expenses (especially healthcare), ignoring inflation's impact on purchasing power, not starting savings early enough to benefit from compound interest, and leaving retirement savings in the wrong place (like not converting super to a tax-free pension), leading to running out of money or living a constrained lifestyle. A lack of a clear budget, not understanding investment options, and neglecting lifestyle/purpose planning also rank high.
Yes. If you work, you can save tax by putting the max possible into your super account and draw out income through a TTR account.
What does this mean for my benefit? To access your full SSS pension at age 55, you must state in your application that it is your intention to leave the workforce permanently. This means if you are intending to work at all, that it be for less than 10 hours per week.
While you can go back to work and still receive the Age Pension, doing so could impact your eligibility under the income and assets tests, because your super and employment income is considered.
The "3 rule retirement" typically refers to a conservative withdrawal strategy, like the 3% rule, suggesting you withdraw 3% of your savings in the first year and adjust for inflation, ensuring your money lasts longer, especially if retiring early or leaving an inheritance. Another concept is the Rule of Thirds, splitting savings into a guaranteed annuity (1/3), growth investments (1/3), and cash/emergencies (1/3), or the Three Buckets for managing cash flow (short, medium, long-term).
Permanently Retired 60-64: If you are accessing your super because you are retired with no intention of ever returning to part-time or full-time work ever again, then you cannot work 10 hours or more in any given week.
The short answer is yes, you are able to take your pension and still continue to work. These days, in the UK at least, there is not necessarily a retirement age for anyone. You can continue working for as long as you like and, from the age of 55 (57 from April 2028), access most private pensions in various ways.
A comfortable retirement will look different for everyone. While 7 figures in superannuation may sound great, the reality is most people heading into retirement won't have anywhere near that amount. Australians aged between 60-64 have an average super balance of $401,600 for men and $300,300 for women1.
The golden rule of saving 15% of your pre-tax income for retirement serves as a starting point, but individual circumstances and factors must also be considered.
Retirement Regrets: Top 15 Things Retirees Wish They Had Done Differently
Claiming early applies an actuarial reduction to your PIA: a 5/9 of 1% cut for each of the first 36 months before full retirement age, and 5/12 of 1% for additional months. For someone whose full retirement age is 67, starting benefits at 62 is 60 months early. This translates to a 30% permanent reduction in benefits.
Crystal Edwards: The advantage of taking retirement benefits early is that you start to collect the money that you've been paying over to the government monthly since you started working. The downside to that, however, is that it causes a permanent reduction in your Social Security retirement benefit.
Orman explained that you can start Social Security as soon as 62, but that you shouldn't. She said: "Don't settle for a reduced Social Security benefit. If you are in good health, the best financial move you can make is to not claim Social Security before you reach your full retirement age."
You can get Social Security retirement benefits and work at the same time. However, if you are younger than full retirement age and make more than the yearly earnings limit, we will reduce your benefits. Starting with the month you reach full retirement age, we will not reduce your benefits no matter how much you earn.
A monthly pension payment gives you a fixed amount every month over your whole life, so you don't have to worry about changes in the stock market. In contrast, a lump-sum payout can give you the flexibility of choosing where to invest or save your money and when and how much to withdraw.
How much income can I have and still get the Age Pension? If you're single, you can earn up to $2,575.40 per fortnight and still receive a part pension. Couples can earn up to $3,934.00 combined. Transitional rate pensioners and those living apart due to ill health may have higher thresholds.
Yes, however it's important to think through any potential impacts on your pension or tax.
Generally, if you are receiving a regular retirement, it will continue and your salary will be equivalently reduced. But, if you retired for disability or because your job was eliminated, your eligibility for the retirement benefit might end.
Working and aged 60 and over
This is called the Post-Retirement Benefit ( PRB ). You might be eligible if you are: 60 to 70 years of age. working and contributing to the CPP.
After age 59½, you can withdraw funds from both traditional and Roth IRAs without a penalty, though taxes apply to some withdrawals. Traditional IRA owners must start taking required minimum distributions (RMDs) after turning 73, while Roth IRAs don't have RMD requirements.
Key Takeaways
The average retiree household spends about $60,000 annually, with housing (36%), transportation (15%), healthcare (13%) and food (13%) taking the largest shares of the budget.
The 4% Rule
Introduced in the 1990s by financial advisor Bill Bengen, this rule suggests you can withdraw 4% of your retirement portfolio annually without running out of money for at least 30 years. It's based on historical market data and was designed as a conservative, worst-case scenario.