Tradie Retirement — How Self-Employed Tradies Can Retire Comfortably

Most tradies never think seriously about retirement until it's too late to make good decisions. Your body has a use-by date for physical work — the question is whether your finances will be ready when it is. Here's how to make sure they are.

The Tradie Retirement Reality

Self-employed tradies have a retirement challenge that employees don't: nobody contributes to your super for you. Years can pass without a dollar going into superannuation. Then at 55, your knees are shot and you realise you have $60,000 in super and no plan.

The good news: it's fixable at almost any age. The earlier you start, the less painful it is — but even late starters can make meaningful progress with the right approach.

Superannuation — Your Most Powerful Tool

Super is genuinely the best retirement savings vehicle available to Australian tradies because contributions are taxed at just 15% — significantly lower than your income tax rate. If you're earning $100,000 and paying 32.5% marginal tax, contributing to super saves 17.5 cents in tax on every dollar contributed.

The concessional contribution cap for 2025–26 is $30,000 per year — this is the maximum you can contribute and claim as a tax deduction. Many tradies under-utilise this cap significantly.

If you have unused cap from previous years (up to 5 years back), you may be able to carry forward and contribute more than $30,000 in a single year — the catch-up contributions rule. Talk to your accountant about this if you've had years of low or no contributions.

The best super fund for most self-employed tradies is a low-fee industry fund. AustralianSuper is the largest and has consistently strong long-term returns with low fees.

How Much Do You Actually Need to Retire?

The Association of Superannuation Funds of Australia (ASFA) estimates a "comfortable" retirement for a single person in Australia requires approximately $595,000 in retirement savings (2024 figure) — assuming you own your home and receive some Age Pension.

Practically, many tradies aim for $500,000–$800,000 in super plus an owned home. With $600,000 invested at a conservative 5% return, you can draw $30,000/year sustainably without touching the capital — plus a part Age Pension for many people takes total income to $40,000–$50,000/year.

Beyond Super — Other Investments for Tradies

Super is locked up until preservation age (60 for most people). Building wealth outside super gives you more flexibility:

• Investment property — many tradies are well-positioned here. You understand construction, can do renovation work yourself, and have trade contacts. Negative gearing and capital growth have built significant wealth for many tradies over the past 20 years.
• Index funds / ETFs — low-cost, diversified share market exposure. Buy regularly through a platform like Sharesies, CommSec Pocket or Vanguard Personal Investor. Simpler than property, no maintenance calls at 11pm.
• Business sale — if you've built a trade business with staff, systems and recurring clients, it has sale value. This is often an underappreciated asset for tradies who've built beyond solo operation.

What to Do at Every Age

In your 20s and 30s: Start super contributions now, even small ones. Time is your biggest asset — $5,000/year at 25 is worth dramatically more at 65 than $10,000/year starting at 45, because of compound returns.

In your 40s: Maximise concessional contributions. Start catch-up contributions if you have unused cap. Consider property or shares if cash flow allows.

In your 50s: Maximise super contributions urgently — you're in the power decade. Review your investment options within super (shift towards balanced/growth if you're behind). Talk to a financial adviser about a transition to retirement strategy.