How to retire early in Australia: super, the gap years and your income

Most of the tech execs I meet don’t want to stop working at 50. They want the choice.

Work optional. Doing the job because they enjoy it, not because the mortgage needs it.

Getting there takes a plan that most people never write down. Here is how it works in Australia.

The rule that shapes every early retirement: preservation age

For anyone now in their 40s or 50s, your preservation age is 60. That is the earliest you can generally access your super.

You can usually get to it once you retire after 60. Or at 65, whether you have retired or not.

So if you want work to be optional at 52, super can’t pay for the first eight years. That gap is where most early retirement plans fail.

Think in two buckets

I split every early retirement plan into two buckets of money.

Bucket 1: the bridge

This funds your life from the day you stop until 60. It has to sit outside super, so you can use it.

• A diversified share portfolio, built from RSU proceeds and bonuses
• Investments built through debt recycling
• Cash and offset balances for the first year or two
• Part time or consulting income, if you want it

Bucket 2: the long haul

This is your super. It funds everything from 60 onwards, and it is the most tax effective place to hold money in Australia.

Once you retire after 60, you can move up to $2M per person into a retirement income account. The earnings on that money are tax free, and so are the payments.

How much do you need?

A simple rule I use: aim for about 20 times the yearly income you want. For $200K a year, that is around $4M across both buckets.

For tech execs, the realistic target is usually $15K to $25K a month after tax. The mix between the buckets depends on how early you want the choice.

I explain the full method in how much money will I need to retire comfortably.

Five moves that bring the date forward

1. Max your concessional super. Use your full $30K cap each year, and any unused cap from the past five years if your balance is under $500K.
2. Add after tax money to super. Up to $120K a year, or $360K at once using the bring forward rule, if you are eligible.
3. Put your home equity to work. Debt recycling can build the bridge bucket while making your home loan interest tax deductible.
4. Sell down your RSUs on purpose. A multi year plan cuts concentration risk and funds bucket one.
5. Run a cash flow system. Your savings rate matters more than your salary. A good system makes saving automatic.

The risks to plan for

• Markets fall. Keep one to two years of spending in cash, so you never sell shares at the bottom.
• Rules change. From 1 July 2027, the 50% CGT discount is replaced by indexation and a 30% minimum tax on real gains. Your bridge bucket plan should allow for it.
• You live longer than you think. Plan income to age 95, not 85.

Turning it into a plan

This is exactly what my Early Retirement Blueprint does. It maps both buckets, your RSUs, your super and your home equity into one plan, built with you in 30 days.

Want to read first? The free Lifetime Income Playbook walks through the whole approach.