Talk to your employer about retirement

Giving notice

You need to give your employer notice that you’re retiring. You should refer to the resignation notice period in your employment contract to find out how much notice you must give.

Find out more about resignation and notice on the Fair Work Ombudsman website.

Transition to retirement

Some people like to reduce their working hours instead of leaving the workforce completely to help them transition into retirement. You should speak to your employer if you’re interested in moving to part-time work.

When you reach preservation age, you may be able to supplement your part-time working income with your superannuation savings.

Find out more about transition to retirement on the Australian Taxation Office (ATO) website.

Approved early retirement schemes

In some cases an employer may put in place an early retirement scheme, approved by the Commissioner of Taxation. These schemes offer a tax-free payment to encourage some employees to retire early or resign.

You can learn more about approved early retirement schemes on the ATO website.

Lump sum payments from your employer

When you retire your employer may pay you a lump sum for unused annual or long service leave. You may be able to pay tax at a lower rate on these payments.

You can find more information about payments leading into retirement and lump sum payments on the ATO website.