ASFA (Association of Superannuation Funds of Australia) distinguishes between two retirement lifestyle standards:

• Modest: Covers basics and some small “extras”, but limited expenditure on discretionary things.
• Comfortable: As above, plus more discretionary spending, private health cover, more regular travel, and greater flexibility. (ASFA)

To “Retire Comfortably” is more than just a dream; it means being able to maintain a good standard of living. Key components include:

• Owning (or having paid off) your home, or at least having low housing costs.
• Good daily living expenses: food, utilities, transport, clothing.
• Private health insurance, or good access to healthcare without financial stress.
• Leisure & social activities: travelling (domestic or occasional overseas), hobbies, entertainment.
• Having a budget helps you retire comfortably.
• Comfortable durable goods: car, electronics, good furniture, and maintaining the home.
• Some buffer for unexpected events (e.g. health issues, home repairs).

Australian retirees increasingly report financial insecurity as a reason for returning to work or delaying retirement. The biggest financial mistakes retirees make are key drivers, including rising living costs, inadequate savings, unexpected expenses, misunderstanding of retirement entitlements, and unsound investment or spending decisions. (The Guardian)

Retiring early is an appealing idea: more time for travel, hobbies, family, and personal fulfilment. But there’s a price. More years off work mean more expenses, more risk, and greater demands on your savings, which raises the question: How long will my money last when I retire? In Australia, with rising life expectancy, increasing cost of living, and a changing superannuation and Age Pension environment, planning for early retirement requires careful, data-informed calculations.

This article explains the effect of extra years in retirement, what research shows about returning to work, and gives a straightforward method to calculate how much you’ll need if you choose to retire before traditional ages.

What is “Early Retirement” in Australia

• According to the ABS (Australian Bureau of Statistics), in 2020-21 the average age of retirement (people ceasing full‐time work or exiting the labour force) was ~ 56.3 years for all retirees aged 45+. (Australian Bureau of Statistics)
• The average intended retirement age is older (~ 65.4 years in 2022-23). (Australian Bureau of Statistics)
• Many people wishing to retire before that are hoping for what might be called “early retirement” — permanently stopping or significantly reducing paid work before the mid-60s.

Thus “early retirement” might mean retiring at, say, age 55, or even earlier, depending on one's expectation and health, housing status, lifestyle etc.