Flextirement: A new way to think about retirement in Australia

As the idea of traditional retirement continues to evolve, more Australians are rethinking how—and when—they choose to step back from work.

Enter flextirement: a growing trend where individuals gradually transition out of full-time employment instead of stopping work altogether.

While rising living costs are certainly a factor, recent research shows that money isn’t the only reason Australians are delaying retirement. Many are driven by a desire to stay active, connected, and purposeful.

According to the Association of Superannuation Funds of Australia, more than 70 per cent of working Australians aged 50 to 64 have no intention of retiring completely. And among those aged 65 and older who are still working, about a quarter say they continue to do so for social connection and mental stimulation.

This mindset shift is right in line with the principles of flextirement. It’s not just about earning an income—it’s about maintaining lifestyle, purpose, and health through a more balanced exit from the workforce.

AustralianSuper Education Manager, Peter Treseder, says: “Staying engaged – whether through part-time work, volunteering or community activities – can provide structure, social connection and a renewed sense of purpose beyond a career.”

While staying connected and active is key, financial planning remains central to the flextirement approach.

“Flexibility in retirement isn’t just about how you spend your time – it’s about having the financial security to make those choices. A well-planned super balance gives you the freedom to ease into retirement on your own terms,” Treseder explains.

John Simpson’s story is a perfect example of flextirement in action. After more than four decades in financial services, he wasn’t ready to stop working cold turkey. Instead, he built a bridge to the next stage of life.

“In 2023, I took three months of long service leave before returning to work three days a week – a shift that gave me time to plan for life beyond my career,” John explains.

“That transition period made all the difference. It helped me ease out of full-time work without feeling like I was losing my sense of purpose overnight.”

Flextirement opened the door to a fulfilling new routine. John now spends time with his grandchild, volunteers at his local hockey club, and swims regularly with Surf Life Saving members.

“I spend one day a week caring for my grandchild, I’ve taken on a bigger role in my local hockey club and added an ocean swim with Surf Life Saving members to my weekly routine,” he says.

“The best advice I’d give anyone approaching retirement is to think of it as a transition, not an end. Easing into retirement through flexible work helped me to establish a new routine to stay socially and mentally active, which is just as important as the financial aspect of retirement.”

IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.