How to Prepare for Retirement: A Complete Guide
Planning for retirement is one of the most important financial decisions you’ll make. Whether you’re in your 40s, 50s, or already approaching retirement age, knowing how to prepare for retirement in Australia can make the difference between uncertainty and peace of mind.
In this guide, we’ll walk you through the key components of a successful retirement strategy—covering superannuation, budgeting, government support, and more.
Understanding the Retirement Landscape in Australia
The average Australian retires at around 65, though access to superannuation typically begins from age 60 and the Age Pension from 67 (depending on your birth year). With increasing life expectancy, retirement could last 20–30 years or more, so strategic financial planning is essential.
Key facts:
- Superannuation access: from age 60 (under specific conditions)
- Age Pension eligibility: from age 67 (subject to income and assets tests)
- Average retirement duration: 20+ years
Setting Your Retirement Goals
Before crunching the numbers, ask yourself what kind of retirement you envision:
- Do you want to travel?
- Will you downsize your home?
- Are you planning to support children or grandchildren?
Once you’ve defined your goals, estimate how much income you’ll need annually. A common rule of thumb is 65–70% of your pre-retirement income, but this varies significantly based on lifestyle.
Use the Moneysmart Retirement Planner to model various scenarios.
Superannuation: Your Primary Retirement Asset
Super is the foundation of most Australians’ retirement savings. Understanding how your super works—and how to maximise it—is critical.
Key actions:
- Make additional concessional or non-concessional contributions
- Consolidate accounts to avoid duplicate fees (see our guide: How to Choose a Superfund)
- Check insurance policies within your super
- Review investment options and risk profile
Many Australians underestimate how much they’ll need. Regularly review your super statements and use online calculators to project growth.
Government Support: The Age Pension and More
Australia’s Age Pension provides a financial safety net for eligible retirees. Eligibility depends on your income and assets. Partial payments may apply if you exceed certain thresholds.
Other supports include:
- Commonwealth Seniors Health Card
- Rent Assistance
- My Aged Care services, including subsidised home care
For detailed criteria and calculators, visit Services Australia and My Aged Care.
Budgeting for Life After Work
Your income will likely become more fixed in retirement, making budgeting essential.
Tips:
- Track fixed vs discretionary expenses
- Build an emergency fund
- Plan for healthcare costs and inflation
- Revisit your budget annually
Example: If your super balance at retirement is $500,000, drawing $40,000 per year would exhaust your funds in about 13 years—without investment growth. Incorporating government support can extend this significantly.
Managing Assets and Protecting the Family Home
Your home is often your most valuable asset—and one with emotional significance. Selling it to pay for care or expenses may not be necessary with the right strategies.
Considerations:
- The home is exempt from the Age Pension asset test (if a partner or dependent resides there)
- Gifting or transferring ownership can affect Centrelink assessments
- Reverse mortgages allow you to access equity while retaining ownership (see our blog on reverse mortgages, coming soon)
Protecting the home requires proactive planning—especially if future aged care is a possibility.
Healthcare and Aged Care Planning
Aged care is one of the most overlooked aspects of retirement planning. Costs can vary dramatically, so early research and preparation are key.
Checklist:
- Review your private health insurance
- Understand residential and home care options
- Explore funding models (RADs, DAPs, means-tested fees)
- Visit My Aged Care to begin exploring services.
Estate Planning and Legal Considerations
Estate planning ensures your wishes are honoured and your assets distributed efficiently. It can also reduce stress for your family.
Key documents:
- Valid and updated will
- Enduring power of attorney
- Advance care directive
- Superannuation death benefit nominations (binding or non-binding)
Consider professional legal advice, especially if you have complex family arrangements or blended families.
When to Seek Professional Advice
While online tools and resources are useful, they cannot replace tailored financial advice—especially when it comes to aged care, asset structuring, and long-term cashflow modelling.
Contact Roccaforte when:
- You’re within 10 years of retirement
- You’re navigating the Age Pension or aged care system
- You need help protecting your family home
Roccaforte can especially help you when it comes to aged care, asset structuring, and long-term cashflow modelling.
Final Thoughts & Next Steps
Preparing for retirement in Australia is more than just reaching a superannuation goal. It’s about having clarity, confidence, and control over your future. Whether you’re just starting to plan or making last-minute adjustments, the best time to act is now.
Speak to the team at Roccaforte to ensure you’re on the right track.
