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Why planning for retirement matters
Planning for retirement is about more than deciding when you'll stop working - it's about ensuring you have the financial confidence and flexibility to enjoy the lifestyle you've worked hard to achieve.
Whether retirement is just around the corner or still several years away, taking the time to prepare now can make a significant difference to your long-term financial security.
A well-considered pre-retirement planning checklist can help you assess your financial position, maximise your superannuation, reduce unnecessary risks and make informed decisions about your retirement income. From reviewing your investments and paying down debt to understanding your super and estate planning needs, every step you take today can help you build a more secure future.
No two retirements look the same, which is why it's important to develop a retirement strategy that reflects your personal goals, lifestyle and financial circumstances. The earlier you begin planning, the more opportunities you'll have to optimise your finances and prepare for life's next chapter.
8 pre-retirement planning tips
This retirement planning checklist outlines some of the key areas to consider as you approach retirement. It is intended as a practical starting point to help you prepare, identify opportunities and understand where professional retirement planning advice may add value.
Have a lifestyle plan
In planning for retirement, start by thinking about:
- When and how you want to retire
- What you want to do in retirement
- What lifestyle you want to enjoy
- How much money you may need each year
It is never too late or too early to plan. Even if you start 20 years ahead, you can set personal and financial goals and develop strategic plans for what you want from retirement.
Generally, most people start to plan their retirement around 10 years before they want to retire. At this stage, you will want to focus on where your investments are positioned, whether you have enough money to retire, and what changes you may need to make to close the gap.
Because superannuation generally forms a significant part of retirement wealth (due to the power of compound returns and tax concessions), consideration may be given toward making extra super contributions to reach your desired amount.
Prepare a budget
Preparing a budget is essential as it helps you see how much capital you need to meet your ideal lifestyle – as well as any adjustments you need to make.
Budget planning often leads to:
- changing spending habits
- paying down debts faster
- adding to superannuation
- deciding if you need to work for longer to save more
Some see a budget as a constraint, but having a budget allows you to prioritise your spending on what you want, instead of letting your spending control you.
When you prepare your budget, don’t just look at potential income and regular living costs. Consider how to meet unplanned expenses and allow for large capital expenditure items too – such as a new car, holiday, or home repair or renovation.
Reduce debts
More people are entering retirement with some debt; so where possible start reducing debts at least 10 years out from your planned retirement.
Consider whether you can:
- consolidate debts
- make extra payments
- get lower interest rates
As your debts reduce, ask your financial planner to review your insurances to try to reduce premiums where possible so you can save more.
Increase super contributions
As other family commitments and debts reduce, if eligible, you can start to contribute more to your superannuation, so you have more income in retirement. Create a strategy with your financial adviser for making tax-effective contributions.
There are also strategies you can use to make your money last longer via tax-free pension payments. Discuss these strategies with your financial planner so you can take full advantage of your super contribution and pension opportunities.
Take the next step towards retirement
Get clarity on your superannuation, investments and retirement income strategy with personalised advice from RSM’s financial advisers.
Monitor your investments regularly
As retirement approaches, it's important to review whether your investment strategy still aligns with your goals, risk tolerance and expected retirement income needs. You should monitor your investments and check in with your financial planner at least once a year. This is even more important as you near retirement.
While many people have a ‘set and forget’ approach to superannuation and other investments, it’s crucial to manage the level of risk (or loss of capital) you are willing to accept as you get older.
Discuss this with your financial planner so they can help you allocate assets and diversify your investments to suit your unique situation – rather than relying on past performance.
Check access to government benefits
Retirement planning is not complete without checking your eligibility for Australian Government benefits. These currently include the Age Pension, DVA Pension and Commonwealth Seniors Health Card.
Although you may not actively plan to receive an age pension benefit, the income and assets tests are reasonably high so it’s worth finding out if you are (or will be) eligible.
Work with your financial planner to see how your super and pension income streams interact with the age pension system. Also consider gifting some assets or renovating your home before you are eligible to receive the age pension. You may be able to increase your pension benefit.
Consider estate planning
If you haven’t already, seek legal advice and prepare a Will that meets your estate planning goals. Your Solicitor can also help you prepare an Enduring Power of Attorney so a trusted person can step into your legal shoes if you become ill or lose capacity.
Every investment decision is also an estate planning decision. Although you may have outlined what you want in your Will, remember that you need to nominate beneficiaries, or your legal personal representative, for your super and pension accounts to align with your wishes.
When you do this, you should consider the tax implications for your nominated beneficiaries after you pass away.
Start now
If you haven’t already, seek legal advice and prepare a Will that meets your estate planning goals. Your Solicitor can also help you prepare an Enduring Power of Attorney so a trusted person can step into your legal shoes if you become ill or lose capacity.
Every investment decision is also an estate planning decision. Although you may have outlined what you want in your Will, remember that you need to nominate beneficiaries, or your legal personal representative, for your super and pension accounts to align with your wishes.
When you do this, you should consider the tax implications for your nominated beneficiaries after you pass away.
Start planning for a confident retirement
Preparing for retirement is one of the most important financial decisions you'll make. By reviewing your superannuation, investments, retirement income and long-term goals early, you can put yourself in a stronger position to enjoy the retirement you've worked towards.
Whether you're just starting to plan or nearing retirement, RSM's experienced financial advisers can help you develop a personalised strategy tailored to your circumstances. Contact our team to discuss your retirement planning goals.
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Ready to prepare for retirement?
Whether retirement is five years away or just around the corner, our experienced financial advisers can help you develop a personalised retirement strategy that aligns with your goals, superannuation and lifestyle.
Book a retirement planning consultation
Ready to prepare for retirement?
Whether retirement is five years away or just around the corner, our experienced financial advisers can help you develop a personalised retirement strategy that aligns with your goals, superannuation and lifestyle.
Book a retirement planning consultation
Frequently asked questions about pre-retirement planning
Ideally, you should begin planning several years before your intended retirement date. Starting early gives you more time to review your goals, grow your superannuation, reduce debt and establish a suitable retirement income strategy. Learn more about retirement planning with RSM.
The amount you need will depend on your preferred lifestyle, retirement age, expected expenses, investment returns and other sources of income. A financial adviser can help you assess your current position and determine whether your savings are on track. Explore RSM’s superannuation services.
Entering retirement with less debt can reduce your ongoing expenses and provide greater financial flexibility. However, whether you should prioritise your mortgage, superannuation or investments will depend on your personal circumstances and broader retirement strategy. Read RSM’s top ten retirement planning tips for other areas to consider.
As retirement approaches, your investment priorities may shift from building wealth towards generating reliable income and managing risk. Your portfolio should still reflect your goals, timeframe and tolerance for market fluctuations. Learn more about RSM’s financial investment advice.
Estate planning helps ensure your assets and superannuation benefits are distributed according to your wishes. Before retiring, consider reviewing your will, powers of attorney, beneficiary nominations and broader wealth transfer plans. Read more about planning your inheritance or explore RSM’s intergenerational wealth transfer services.
Professional advice can help you understand how your superannuation, investments, tax position, government benefits and estate planning arrangements work together. An adviser can develop a personalised strategy based on your retirement goals and financial circumstances. Find out more about RSM’s financial services and wealth management advice.