9 hours ago
2
April 5, 2026 — 5:01am
There is a chance I may lose my job by year-end, and I think I will struggle to find new work, potentially forcing early retirement. I’m turning 60 soon, earning $77,000 (plus super), single with no dependents. My plan has always been to work until age 67 and then live on the age pension plus super. I have $356,000 in super (high growth), a home worth ~$800,000 with a $205,000 mortgage and $51,000 in offset, and no other debts or investments. Living costs are about $3,000 per month.
I recently contributed $100,000 to super using carry-forward concessional caps and expect a ~$15,000 tax refund. Without downsizing, how secure is my position – particularly regarding managing the home loan?
Thanks for your question. We all work on the assumption that we will retire at a time of our choosing, but as you illustrate here, that is not always how things unfold.
If the job loss does occur, you should certainly sit down with a financial planner and work out a detailed plan. But here are a few items for you to contemplate.
Firstly, as you are probably aware, if your employment ceases, and you are over 60 years of age, your superannuation is accessible. Given the numbers you have provided, you could make a lump sum withdrawal from your super and clear your mortgage.
That would provide great peace of mind, and eliminate the mortgage expense, which reduces your cash flow needs. Of course, you miss out on the earnings your super fund would have generated, but you may find that a reasonable trade to make under the circumstances.
You would be able to apply for the Job Seeker benefit once you become unemployed. As you are under age pension age (67) any money in superannuation would be ignored for means testing purposes.
While the Job Seeker benefit isn’t generous, perhaps with your mortgage cleared it might be enough to get by on, and if you had a large unexpected expense you could solve that via a lump sum withdrawal from super.
Alternatively, you could convert your super to a pension and begin drawing a regular income. It will now count for Centrelink means testing, so this will most likely knock you out of any benefits here, but you could then have a higher level of income in the short term.
You would live off your super through until reaching age 67, and then rely on the age pension from there. Given your rate of spending and the numbers you provided, this looks like it would stack up.
Our 43-year-old daughter suffers high anxiety, has never been in the workforce, and manages on a small government pension supplemented by some assistance from us.
Our income derives from superannuation pensions, and, while not depriving ourselves, we are wondering if a good strategy might be to start a superannuation account for our daughter now, and contribute amounts when we have any excess funds?
This could be a great way for you to provide some early inheritance gifts which will contribute to her financial security long term. When she ultimately receives her inheritance, she will likely want to use the super system for its tax effectiveness.
But contribution limits might restrict what is possible. By progressively building these savings in the years ahead, her wealth within the super environment can be maximised. Money in super is ignored by Centrelink until age 67, so this asset should have no impact on her pension.
Paul Benson is a Certified Financial Planner at Guidance Financial Services. He hosts the Financial Autonomy podcast. Questions to: [email protected]
- Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their personal circumstances before making any financial decisions.
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