Skip to content

Retirement

Teacher retirement checklist: what to do five years, two years and 12 months out

A countdown checklist for teachers retiring in 2026 to 2031: service, long service leave, sick leave, super and DB estimates, Age Pension basics and tax.

✓ By the TeacherPay AU Editorial Team · fact-checked against official sources Updated 28 October 2026 9 min read
On this page (9 sections)
  1. The ages to plan around
  2. Five years out: get the facts
  3. Three to two years out: decide how to wind down
  4. Long service leave: take it, or have it paid out
  5. Sick leave and other entitlements
  6. The last 12 months: lock in the dates
  7. Centrelink and the Age Pension: the basics
  8. Tax in the year you retire
  9. FAQs

The short answer

Start five years out: confirm your recognised service and super scheme, and get benefit estimates. Two years out, decide on part-time, transition to retirement and how to use long service leave. In the last 12 months, check your exit date against pay rises and scheme rules, book advice, and give notice. Unused sick leave is generally not paid out.

  • Preservation age is 60 for anyone born from 1 July 1964; the Age Pension starts at 67.
  • Defined benefit schemes have their own ages: 55 (Gold State, ESSSuper, Super SA) or 58 (SASS).
  • Long service leave can be taken before you go, often at half pay, or paid out under your state's rules.
  • The concessional cap is $32,500 for 2026–27; DB members use a notional figure.

The ages to plan around

Defined benefit access

55–58

Scheme rules; check your statement

Preservation age

60

Born from 1 July 1964 (ATO)

Super with no conditions

65

Even if still working

Age Pension age

67

Means tested (Services Australia)

There's no compulsory retirement age for teachers. Your checklist is really about lining up three things: when you can get your money, how much you'll have, and how you'll bridge any gap to 67. Our guide to when teachers can retire covers the rules in depth; this page turns them into a timeline.

When can you afford to retire? Build a retirement timeline around your scheme and age. General information; your first plan is free.

Five years out: get the facts

Five years before you plan to stop

  • Find out which super scheme you're in. Long-serving teachers may be in a closed defined benefit scheme as well as an accumulation fund.
  • Get a current benefit statement and, for a DB scheme, an estimate at each age you might leave (for example 55, 58, 60, 63 and 65).
  • Check your recognised service with your employer and fund. Prior service in another state or sector may or may not count for pay, LSL or super.
  • In ESSSuper's Revised Scheme, prior service recognition must be applied for, approved and paid for in full before you stop working.
  • Check your contribution rate. A low rate in QSuper DB, Gold State, SASS or the ESSSuper New Scheme can cost tens of thousands; some schemes allow catch-up.
  • Find lost or small accumulation accounts through myGov and decide whether to consolidate (check any insurance first).
  • Check your long service leave balance and your state's rules for taking it or having it paid out.
  • Work out your 'bridge years': how many years between when you want to stop and 67.

Each state's scheme has its own traps. Read the scheme guide that applies to you: ESSSuper (VIC), State Super SASS and SSS (NSW), QSuper Defined Benefit (QLD), Gold State Super (WA) or Super SA (SA). For the full list, see teacher defined benefit super schemes.

Three to two years out: decide how to wind down

This is when the big choices get made, because many of them need lead time or change your benefit for every year that follows.

Wind-down options and what each one changes
OptionWhat you gainWhat to check first
Part-time or job shareTime; easier transitionDB schemes accrue less for part-time years (fewer points, a smaller multiple or fewer service months). See part-time teaching
Transition to retirement (from 60)Income from super while you work fewer days, or tax savings with salary sacrificeWhether your scheme allows TTR, and how much the DB benefit falls if you move money out. See TTR for teachers
Salary sacrificeTax saving on money you put into superYour cap room for 2026–27 ($32,500), the notional contribution your DB scheme reports, and carry-forward if your total balance was under $500,000 at 30 June 2026 (ATO)
Long service leave before your final dayPaid leave that stretches your incomeWhether half or double pay changes your DB salary; LSL rules in your state
Higher duties or promotionHigher final salary in final-salary schemesWhether the allowance is superable and how long it must be held (QSuper: 12 months before 1 July)
Deferred salary or purchased leaveA paid year or extra weeks offHow your scheme treats it (ESSSuper treats 48/52 as a reduced time fraction). See deferred salary schemes

Free calculator

AI Teacher Retirement & Defined Benefit Planner

Put your state, scheme, age, service, salary and target date in and get a general-information countdown with your scheme's rules, the trade-offs of each wind-down option and questions for your fund.

Build my countdown

Long service leave: take it, or have it paid out

For most retiring teachers, long service leave is the biggest single entitlement outside super. How it works differs by state.

Long service leave for government teachers (state data checked October 2026)
StateEntitlementNotes for retirees
NSW44 working days after 10 years, then 11 working days for each further yearCan be taken at double pay for half the time; the double-pay allowance isn't superable for SSS and SASS members
VIC3 months after 10 years, then 1.5 months for each further 5 yearsPro rata after 7 years; can be taken at half pay; pro rata payable on leaving after 7 years
QLD1.3 weeks per year (13 weeks per 10 years)Access after 7 years; half-pay LSL grows a QSuper DB multiple at half rate
WA13 weeks after 10 years, then 13 weeks every 7 yearsFull, half or double pay; accrued LSL can be cashed out by agreement, pro rata only taken as leave
ACT3 months for each 10 yearsCumulative with no cap
SA, TAS, NTApplies, but amounts not verified hereAsk your department or union

Sources: our state data files, built from each state's agreement or legislation. Full detail and links on teacher long service leave and each state page, such as NSW long service leave.

Worked example

What 20 weeks of unused LSL is worth at NSW Step 7

Salary (from 9 Oct 2026)
$133,422
Weekly rate ($133,422 / 52)
about $2,566
20 weeks at full pay
about $51,316 before tax
Taken at half pay instead
40 weeks at about $1,283 a week
Gross value of the entitlement about $51,300

Our arithmetic. LSL taken as leave is taxed like salary; unused LSL paid out on retirement is an 'unused long service leave' payment, and older service periods or a genuine redundancy can change the tax treatment. Ask payroll or a registered tax agent. Check your own balance with the long service leave calculator.

Sick leave and other entitlements

Unused sick (personal) leave is generally not paid out when a teacher resigns or retires. WA's 2023 General Agreement says so explicitly, and other systems don't normally cash it out either. That makes it worth knowing your balance if you have a planned operation or a health issue in your last year. See teacher sick leave.

  • Annual leave: teachers take recreation leave during school holidays, so there's usually no large balance to pay out, but check your final pay.
  • Leave loading: check whether it's paid on your final holiday period. See teacher leave loading.
  • Back pay: if back pay is still to come (Victoria's VGSA 2026, approved on 16 October 2026 with back pay to follow, or Queensland's arbitration), ask how back pay is handled after you leave and how it's reported to your super scheme.
  • Registration: keep it current if you might do casual relief work after retiring. See casual relief teacher pay.

The last 12 months: lock in the dates

12 months to go

  • Get fresh written estimates from your fund for each exit date you're considering.
  • Check how your scheme measures final salary. SASS uses your salary on exit and on 31 December of the two previous years; QSuper averages the last 12 months if you leave at 54 or over; Gold State uses selection dates linked to your birthday.
  • Line your exit date up with pay rise dates (NSW 9 October, SA from 8 May in 2026, WA 6 December) where it helps your benefit.
  • Book an appointment with your fund's education or advice service, or a licensed financial adviser, for the lump sum versus pension and rollover decisions.
  • Decide whether to take LSL before your final day or have it paid out.
  • If you'll be over 60, decide whether to resign outright or end one employment arrangement and keep casual work.
  • Check what insurance you lose when you stop contributing, especially death and TPD cover in DB schemes.
  • Work out the notice period you need to give. See resigning as a teacher.

Age Pension age is 67 (Services Australia). To get it you must also meet residence rules, an income test and an assets test. Super in an account-based pension, a DB pension and other assets can all reduce what you get, or mean you get none. If you're pension age but don't qualify, you may still get a Commonwealth Seniors Health Card.

We don't publish the means-test thresholds here because they change several times a year. Check Services Australia's current figures, or book a free Financial Information Service session with Services Australia, before you assume a part pension will cover your later years. A teacher retiring at 60 has seven bridge years to fund before any pension; retiring at 63 leaves four.

Tax in the year you retire

  • Super from a taxed fund (most accumulation funds, including Aware Super and GESB Super) is generally tax-free once you're 60, as a lump sum or pension.
  • Untaxed schemes (Gold State, West State, Super SA's schemes, and others) deduct tax on the untaxed element when paid or rolled over, even after 60, within the $1.935m untaxed plan cap for 2026–27 (ATO).
  • Before 60, preserved super generally can't be paid unless you've retired after preservation age; DB schemes that pay from 55 may apply higher tax.
  • Your final year's salary, LSL payout and any back pay are taxed through payroll. A large final pay can push PAYG withholding up for one pay; it evens out in your tax return.
  • Salary sacrifice in your last year still counts towards the concessional cap. Check the total with your fund before your final pay.

For take-home figures in your final working years, use the take-home pay calculator. For anything involving a large payout, a registered tax agent is worth the fee.

This checklist is general information, not personal financial advice. Your fund, Services Australia and a licensed adviser can confirm what applies to you. If you're leaving before retirement age, see leaving teaching in Australia.

Frequently asked questions

How far ahead should teachers plan retirement?
Five years is a good start. That leaves time to check service, raise a low DB contribution rate, use salary sacrifice under the cap and plan how to take long service leave.
Is long service leave paid out when a teacher retires?
It depends on the state. Unused LSL is commonly paid out on leaving once you're entitled, and some states allow cash-out by agreement, but rules on pro rata balances differ. Check your state's agreement or ask payroll.
Is unused sick leave paid out when a teacher retires?
Generally no. WA's General Agreement says personal leave isn't paid out on exit, and other systems don't normally cash it out either.
When should I tell my school I'm retiring?
Give at least the notice your employer requires, but tell your fund much earlier so you can get benefit estimates. Some scheme decisions have windows that start before your final day.
Can I get the Age Pension at 60?
No. Age Pension age is 67, and it's means tested on income and assets. Between retirement and 67 you'll usually rely on super, a DB pension, savings or part-time work.
Should I take my defined benefit as a pension or lump sum?
That depends on your health, partner, other assets and Age Pension position, so it's a personal advice question. Your fund's advice service or a licensed adviser can model both.
Can I keep working as a casual teacher after retiring?
Yes, if you keep your registration current. After 60, ending a permanent role can count as a condition of release for super built up to that date, even if you then do relief work.
Does retiring just after a pay rise increase my super?
In final-salary defined benefit schemes it can, because the higher salary flows into the formula. How much depends on how your scheme measures final salary, so ask for estimates at each date.

Sources we checked · last verified 2026-10-28

  1. 1.ATO: When you can withdraw your super
  2. 2.ATO: Contributions caps
  3. 3.ATO: Payments from super
  4. 4.Services Australia: Who can get Age Pension
  5. 5.State Super: SASS key terms
  6. 6.QSuper: Defined Benefit Account Guide (1 July 2026)
  7. 7.GESB: Gold State Super
  8. 8.ESSSuper: Revised Scheme Handbook

About this page

Written and fact-checked by the TeacherPay AU Editorial Team against the enterprise agreements, awards and official pages listed in the sources. It is general information, not personal financial, tax or legal advice. Spotted something out of date? Tell us and we'll fix it, usually within a day. See our editorial policy and how we calculate.

Keep reading