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It used to be simple: clock out one last time, draw down your super, and head off into the sunset with a caravan around the country.
But nowadays, that’s often not the case. People are living longer, staying healthier, and rethinking what retirement actually looks like.
For some, stopping work completely feels too sudden or even financially risky. According to research by the Association of Superannuation Funds of Australia (ASFA), a third of Aussies aged 65–69 are still working or looking for work.
So let’s take a look at why we are working longer, and what this could mean to the Age Pension, super and tax.
Why are retirees going back to work?
Let’s start with some more numbers from the ASFA research:
One in 4 four Australians over 65 who are still working say that they want to stay socially connected.
14% say that they may never be able to retire due to financial reasons.
Almost 40% of people aged 18–34 can see themselves working in retirement.
So while some Aussies are continuing to work for financial reasons, there are plenty doing it because they want to. Here are some reasons why:
Mental stimulation and routine: many Aussies enjoy keeping their mind active by working. It also means having a regular routine and a reason to get out of bed in the morning.
Increase social circle: the workplace can be a hub for meeting people from diverse backgrounds and making new friends, particularly for single retirees who live on their own.
Top up savings: whether it’s stretching retirement funds so they go a little further or helping to cover rising living costs, working longer can boost bank balances.
Not ready to call it quits: some people aren’t ready to slow down. They’re healthy, passionate about work, and still have a lot to contribute to a workplace.
Living longer: advances in medicine and medical technology, means we’re living longer. Life expectancy in Australia for 2025 is 84.18, compared to 79.23 in 2000. Except for 2022 and 2023 – possibly due to the pandemic – life expectancy has been steadily rising each year.
What kind of work are retirees going back to ?
Most retirees who want to continue working aren’t jumping into a 9-to-5 routine unsurprisingly. They are looking for flexibility – often part-time, casual or self-employed.
The work includes:
Care and community – such as aged care, reception work, or volunteering that may lead to paid work.
Education – tutoring, exam supervision, mentoring, or lecturing at universities.
Retail and hospitality – customer service roles with flexible rosters.
Consulting and admin – part-time or project-based work.
Gig economy – rideshare driving, handyperson jobs, deliveries, or pet-sitting.
These jobs tend to offer a nice balance of interaction, structure, and flexibility. Retirees are not chasing physically demanding roles with long hours or rigid schedules.
How to navigate retirement
There’s no one-size-fits all, but here are some considerations if you’re thinking of retiring or returning to work after retiring.
Still working but thinking of scaling back?
If you’re still working and not quite ready to retire, a Transition to Retirement (TRIS) Income Stream lets you cut back your hours while topping up income from your super.
The main rule here is that you must have reached your preservation age which is 60 for most people. But you can only access your super as a partial income stream, so you won’t be able to fully withdraw it.
💡If you scale back your work hours, you can still make super contributions with salary sacrifice to boost your retirement next egg.
What if you previously declared you’d never work again?
If you retire after reaching your preservation age and genuinely intend not to work again, you can get full access to your ‘to-date’ super. But if you later change your mind and decide to return to work, any new super contributions made will be preserved. This means you won’t be able to access these funds until you meet another condition of release. It could be when you turn 65 or once again decide to stop work.
Here are some scenarios to consider.
If you’re aged 60-64 and accessing your super via a transition to retirement income stream, there are no restrictions on the hours you can work.
If you’re aged 60-64, have permanently retired and are accessing your super because you genuinely had no intention of returning to work, you can’t work 10 hours or more per week. But if you later change your mind, you can return to full time work – as long as your original intention not to work was genuine.
Be aware: this is a tricky area so it’s important to check with your super fund to find out about your specific situation.
Once you’re 65 plus, you can fully access your super and there are no limits on the hours you want to work.
Can working part-time impact your Age Pension?
If you’re aiming to work part-time, and get the Age Pension, the government’s Work Bonus scheme can help you keep more of your pension, by reducing the impact of your income on your pension payment.
Under this scheme, each fortnight you’ll receive a $300 credit added to your Work Bonus Balance – up to a maximum $11,800. The credit offsets your eligible income (from your part-time job) so depending on how much you earn, your Age Pension may not be impacted.
Be aware: on 1 July 2025, the Age Pension reduced by:
40 cents for each dollar earned over $218 per fortnight, for singles
50 cents for each dollar over $380 per fortnight, combined for couples.
More accounts to get on top of
If you start receiving a retirement income stream from your super, you generally can’t add new contributions to that same account. This is because your super moves from an ‘accumulation’ phase to a ‘retirement’ phase, and each has different rules.
So if you decide to work again and make new super contributions, you’ll need to open a separate accumulation account.
Managing multiple super accounts or tracking contributions between different accounts can make the admin side more complex, talk to a professional for help if you need support.
What about tax?
When your super is in the retirement phase, any returns on investments in your super are generally tax-free.
But if you earn additional income – from work, super, or other investments – you may move to a higher tax bracket. This could impact your tax rate and eligibility for other concessions. Talk to a finance professional to see what this means for you.
Bottom line
Retirement isn’t a clear finish line anymore. For some of us, it means working longer – whether it’s to top up the budget, keep busy or just a reason to get out of the house. This new retirement looks a lot like shifting gears and not a complete stop.
Whether you’re in your 30s or 60s, it’s worth looking at what it could mean for your future. If you’re thinking about going back to work once you’re retired, don’t just wing it. Do some homework, get proper advice and ask lots of questions.
Retirement needs to work for you. Having more information gives you greater control, so you can get the best out of your golden years.
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The information contained on this web page is provided by Compare Club Australia Pty Ltd, authorised representative of Alternative Media AFSL number 486326. It is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should consider whether the advice is right for you and refer to the Product Disclosure Statement before making a decision in relation to a financial product.
