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A growing number of Australians are eyeing early retirement<\/a>.\u00a0<\/p>\n A recent article in The Australian<\/a> discussed the growing trend of younger Australians aspiring to retire well ahead of the average retirement age.\u00a0<\/p>\n The article noted that the COVID-19 pandemic changed people’s attitudes around work and retirement. In recent years, Australians have prioritised life experiences over slaving away in the office.\u00a0 <\/p>\n Based on the latest Australian Bureau of Statistics<\/a> data, the average retirement age in 2022 was 64.8 years.\u00a0<\/p>\n The pension was the main source of income for most retirees. However, most Australians don’t become eligible <\/a>for the pension until age 67.\u00a0 <\/p>\n Additionally, while Superannuation <\/a>is a tax-effective way to build a retirement nest, Australians cannot access these funds until they’re 60.<\/p>\n According to The Australian, rising awareness of concepts like FIRE (financial independence, retire early) has inspired younger Australians to focus on saving and investing.\u00a0 <\/p>\n How much is required for a comfortable retirement? <\/p>\n According to ASFA<\/a>, a 67-year-old single man needs $428,533 for a comfortable retirement. For a single woman, the figure is slightly lower at $379,483.\u00a0<\/p>\n However, those retiring earlier will likely need a higher balance due to a greater number of years without income-earning capacity.<\/p>\n An action plan to reach FIRE <\/p>\n In an increasingly complex world, young Australians may not be clear-eyed about the best way to achieve their retirement goals.\u00a0<\/p>\n However, it doesn’t need to be complicated.\u00a0<\/p>\n In most cases, the most important factors that will determine retirement eligibility are how much is invested, how early a prospective retiree starts investing, and what they invest in.\u00a0 <\/p>\n While saving cash and investing in term deposits may feel like a safe option, ASX shares are likely to be a much faster way to reach early retirement.\u00a0<\/p>\n According to the Vanguard Index Chart 2025<\/a>, Australian shares have grown at a compound annual growth rate<\/a> of 9.3% over the past 30 years.\u00a0<\/p>\n Since inception, the Vanguard Australian Shares Index ETF (ASX: VAS<\/a>) has almost exactly matched this return, averaging 9.39%. Therefore, this VAS ETF is a good option for Australians looking for the simplest way to invest in Australian shares. Investors can buy shares on a regular basis and achieve diversification benefits. <\/p>\n On the other hand, cash has delivered a return of just 4.1% over the same timeframe.\u00a0<\/p>\n Timing and magnitude also matters <\/p>\n Turning to the impact of timing and amount of funds invested.<\/p>\n