How to Retire Early as a High-Income Earner in Your 40’s
Written by William Lucas
Most people think of retirement as something that happens in your 60s after decades of work, mortgage repayments, and saving. But if you’re a high-income earner in your 40s, you’re in a unique position. You’ve already done the hard part and built skills, earned good money, and created stability.
Now comes the real question:
How do you turn a good income into real financial freedom, and the ability to retire when you want?
At Braeside Wealth, we work with professionals who don’t necessarily want to stop working, they just want to stop needing to. Here’s how to design that outcome intelligently, without unrealistic sacrifice or high-risk bets.
Define What “Retirement” Actually Means
Early retirement doesn’t have to mean sipping cocktails on a beach forever (though that’s fine too).
For many professionals, it means:
Working part-time or consulting instead of full-time.
Having the flexibility to take six months off without financial stress.
Choosing work that’s interesting, not just income-driven.
This is what we call financial independence, not just financial escape.
So the real goal isn’t “never work again.” It’s never work because you have to. That shift makes your plan more achievable and more aligned with real life. Our clients also tell us that when they achieve this, work becomes a lot more enjoyable.
Figure out if you are on track
You can’t hit a target you can’t see.
Start by working out how much income you actually need to cover your lifestyle without a salary. We would suggest using real figures here from previous transactions because the majority of people we talk to underestimate their living expenses when we start working together.
This figure will tell you the size of investment portfolios you’ll need and in what structure to be able to fund your lifestyle when you’re not working.
Design Your Cashflow Like a Business
High-income earners often make one big mistake: they assume that earning more will automatically build wealth. But without intentional structure, your income just becomes more expensive lifestyle.
Here’s what the best do differently:
They run their personal finances like a business.
They know exactly what their fixed costs, fun costs and investment allocation is.
They automate wealth creation so it happens in the background.
A few habits to build in:
Set up multiple accounts: these could be bills, travel, and lifestyle.
Automate investments every month.
Remember: your goal isn’t to live cheaply, it’s to live intentionally.
Use Superannuation Strategically — But Don’t Rely on It
For most Australians, superannuation is their largest retirement asset — but early retirees can’t access it until preservation age (60 for most people).
So, if you want to retire early, you need two parallel wealth systems which, depending on your circumstances, could look something like:
Superannuation Strategy (to fund lifestyle from age 60 onwards):
Maximise concessional contributions (up to $30,000 currently). These will provide a tax deduction for you.
Use carry forward contributions if you’ve underutilised limits in prior years and you are eligible.
Consider spouse contributions or co-contributions if one member of a couple has a lower income to further reduce tax payable.
Personal Investment Portfolio (to fund lifestyle from retirement to age 60):
A mix of shares and property that generate growth now and the potential for income down the track.
This may be achieved through gearing (borrowing money to invest in these assets to accelerate how quickly you can grow your wealth) but this can be a risky strategy.
This approach balances tax efficiency with flexibility and avoids locking away all your wealth where you can’t touch it. The size of these portfolios will depend on when you want to achieve financial independence and how quickly you intend to draw down on it.
Invest for Income, Growth, and Sleep Quality
There’s no shortage of get-rich-quick noise online but sustainable early retirement relies on long-term, diversified investing.
That means:
Market diversification (Australian and global shares, property, fixed income).
Minimising costs and taxes.
Focusing on consistency, not constant excitement.
Your investments should make you wealthier and calmer if they’re doing the opposite, the mix is wrong. Many clients at Braeside Wealth reach early retirement not because they “picked a winner”, but because they simply built a sensible plan, stuck with it, and ignored the noise.
When you are approaching the time where you will start drawing down on your investments you will want to ensure that your portfolio is layered with stable, defensive assets. This will ensure that if share markets take a tumble you don’t need to sell your shares and other volatile assets until they have time to recover.
Don’t Forget the Boring but Powerful Stuff
It can often be easy to overlook the small levers that make a big difference:
Tax efficiency: Structuring your assets, debt, and investments to minimise tax.
Debt management: Paying down bad debt while keeping useful leverage where it adds value.
Estate planning: Making sure your wealth transfers efficiently if something happens to you.
Insurance: Protecting your plan from the unpredictable — especially if you have dependents or business obligations.
These aren’t exciting topics, but they compound your results the same way good investments do. Think of them as the infrastructure that keeps your plan stable through life’s hurdles.
Give it a Test-Drive
When clients get serious about financial independence, they usually realise that buying back time early is a way to test-drive financial independence before you hit the full number. That might mean:
Dropping one workday a week.
Taking an extended family trip.
Starting that side business you’ve always thought about.
It also keeps motivation high because you’re not deferring all your rewards until 60. The point of building wealth is to live better, not just die richer.
Get Powerful Advice Through a Long-Term Lens
If you’re serious about achieving financial independence, you need advice that’s not trying to sell you products… just a structured plan. An independent financial adviser:
Works only for you, not a bank or fund manager.
Has no commissions, referral fees, or product ties.
Helps you make decisions confidently, not emotionally.
That independence matters even more when you’re trying to align complex assets like property, super, business interests, and investments into one clear path to freedom. With the right strategy, you can build the freedom to choose what work, life, and purpose look like on your terms, years ahead of schedule.
If you’d like to understand what your options are and how you can achieved financial independence, click here to book a 15-minute Good Fit Chat It’s obligation-free, but it might just change how you see the next 20 years.
The information in this article is general information and does not take into account any person’s individual situation. You should always do your own research, or seek professional advice to assist you in making an informed decision about what suits your needs.