If retirement crossed your mind over the holidays, now is the ideal time to turn those thoughts into action. Five practical steps for anyone considering retirement in the next one to three years.
As we say goodbye to the festive season and welcome a new year, the slower pace and time with family often give us space to reflect. For many Australians, that reflection leads to an important question: "Is retirement closer than I think?"
If retirement crossed your mind during the holidays, now is the ideal time to turn those thoughts into action. Below are five practical steps for anyone considering retirement in the next one to three years.
If you are aged 60 or over, a Transition-to-Retirement (TTR) strategy may allow you to access up to 10% of your super balance each year as a pension, generally tax-free. A TTR strategy can help you reduce debt before full retirement, improve cash flow, gradually reduce working hours, and boost retirement savings when combined with salary sacrifice.
A simple but powerful concept in retirement planning is the 10/30/60 rule: roughly 10% of your retirement income typically comes from what you save while working, 30% from investment earnings before retirement, and 60% from investment earnings during retirement. This highlights an important reality — most retirement income comes from ongoing investment returns, not just accumulated savings. Even close to retirement, there is still time for your money to work for you.
As you move closer to retirement, your investment strategy should reflect your timeframe, your income needs, and your comfort with volatility. A balanced, long-term strategy aims to support income payments while continuing growth, helping your retirement savings last longer.
Markets are influenced by economic conditions, interest rates, and geopolitical events. While volatility can create uncertainty, it can also present opportunities. Staying informed — or working with a professional adviser — ensures your investment strategy remains aligned with changing conditions, especially during uncertain times.
If you are planning to retire soon, avoid rushing important decisions. Retirement planning should account for income needs, tax considerations, healthcare costs, and unexpected events. A structured plan allows you to move into retirement with confidence rather than reacting under pressure.
The beginning of a new year is an ideal time to make positive financial changes. It is never too late to review how your superannuation is managed or explore ways to strengthen your retirement position. With the right planning, retirement can be a rewarding and financially secure stage of life.
If this raised questions about your own situation, a complimentary discovery call is a good place to start. No charge, no obligation.
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