Plan your retirement with your employer

Reducing your working hours

Transition to retirement

If you’re aged between 60 and 64, you may be eligible for a transition to retirement income stream. This can supplement your income so you can reduce your work hours gradually.

It will top-up your part-time income with your superannuation, so you can reduce your hours without reducing your income.

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

Flexible working arrangements

You may be eligible for flexible working arrangements if you:

• are 55 years or older
• have been employed at your current place of employment for at least 12 months.

Find out if you’re eligible for flexible working arrangements on the Fair Work Ombudsman website.

Giving notice

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

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

Lump sum payments from your employer

When you retire you may get a lump sum for unused annual or long service leave. You may pay a lower tax rate on these payments.

Find out about payments leading into retirement on the 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.

Retirement when you own a business

If you’re planning on retiring and would like to sell or close your business, you can find help on the business.gov.au website.