The 30-year-old has made 44 appearances since joining Trinity from Brisbane Broncos in 2014.
Anderson was sidelined for two months with a back problem before making his comeback against Castleford Tigers last week.
He will be available for Wildcats’ final three games of the season, but then plans to return to Australia.
He said: “It has been one of the hardest decisions I have ever had to make but it is the right time for me to retire.
“I have had a few injuries these past couple of years which have set me back and it is time I listen to what my body is telling me.
“Rugby has been part of my life since I was seven years old and I haven’t really known anything else. It is going to be a big void in my life.”
He added: “I would like to say a huge thank you to Wakefield. I have thoroughly enjoyed my time here, it is a great club with some fantastic supporters and I wish them all the best for next season.
“I am looking forward to going back home and spending some time with my family before I start looking for work.”