Should I see a financial planner before I retire?

Yes. The five to ten years before retirement are the most critical period for financial planning. A qualified financial planner can help maximise superannuation contributions, implement tax-effective strategies like transition to retirement pensions, structure investments to manage sequencing risk, plan for Centrelink entitlements, and create a sustainable retirement income plan. At Insight Wealth Planning in Newcastle, the Pathway to Wealth methodology provides a structured approach for pre-retirees.

Pre-Retirement Planning and Transition to Retirement Strategies

Q: How does the CARE investment philosophy protect my retirement?

The CARE investment philosophy includes a 4-year pause button concept. Your retirement portfolio is structured so that approximately four years of income is held in conservative, stable assets. If markets experience a significant downturn, you can continue drawing income without selling growth investments at a loss. This protects against sequencing risk, which is the danger of a market crash occurring just as you begin drawing on your portfolio.

You have worked hard to build your career and your savings. Now, with retirement on the horizon, it is time to make the decisions that will shape your future.

When can I stop working? Is my super going to be enough? What am I missing that could cost me thousands? How do I make sure a bad market does not ruin my plans?

At Insight Wealth Planning in Newcastle, we specialise in helping pre-retirees navigate the critical five to ten years before retirement. This is the period where the right decisions can add tens of thousands of dollars to your retirement income, and the wrong ones can set you back years.

Our Pathway to Wealth™ methodology, developed by Rob McGregor (2009 AFR Smart Investor Blue Ribbon Award finalist), provides a structured, proven approach to building a retirement you can rely on.

Why the Pre-Retirement Years Are So Important

The five to ten years before you retire are arguably the most important of your financial life. Your super balance is at or near its peak, your earning capacity is still strong, and the decisions you make now will determine whether you retire comfortably or spend your later years worrying about money.

Many people in their 50s and early 60s feel a sense of loyalty to the strategies that have served them well during their working years. But what worked during your accumulation phase may not be the right approach as you move into the decumulation phase. The shift from growing wealth to drawing income from it requires a fundamentally different mindset, and that is where expert guidance makes all the difference.

Learn more about the CARE investment philosophy that focuses on building a 4-year pause button to set aside reacting to market volatilities and focus on your passive income while you can afford to wait for markets to stabilise before selling good quality assets. Do not let an emotive market event push your retirement date into the future. Plan to make your retirement a reliable goal.

Meet a client who we helped navigate the pre-retirement process.

Want to know more?

Click through to find out some answers to some of our Frequently asked Questions, or contact us today for a non-obligatory discussion about your situation and how we could help.

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Key Pre-Retirement Strategies We Implement

Superannuation Maximisation Before You Retire

The years before retirement offer your last opportunity to boost your super balance while still earning an income. For FY2025-26, the concessional (before-tax) contribution cap is $30,000 per year, and the non-concessional (after-tax) cap is $120,000. If your total super balance was below $500,000 at 30 June 2025, you may also be able to use the carry-forward rule to contribute unused concessional cap amounts from the previous five years, potentially contributing up to $167,500 in a single year.

If you are under 75, the bring-forward rule may allow you to contribute up to $360,000 in non-concessional contributions over three years (subject to your total super balance being below the $2 million general transfer balance cap). We work with you to identify the optimal contribution strategy based on your individual circumstances, tax position, and retirement timeline.

Transition to Retirement (TTR) Strategies

If you have reached your preservation age (now 60 for all Australians), a Transition to Retirement pension allows you to access a portion of your super while continuing to work. This can be a powerful tool for reducing your working hours while maintaining your income, or for implementing a salary sacrifice strategy that reduces your tax while simultaneously boosting your super balance.

From age 60, income drawn from a TTR pension is generally tax-free, which creates significant planning opportunities. However, TTR pensions come with restrictions (you can only draw between 4% and 10% of your balance each year), and they are not suitable for everyone. We assess whether a TTR strategy would genuinely benefit your situation or whether alternative approaches would deliver a better outcome.

The CARE Investment Philosophy and the 4-Year Pause Button

One of the biggest risks for pre-retirees is a significant market downturn occurring just before or in the early years of retirement. This is known as sequencing risk, and it can permanently reduce the income your portfolio generates over your lifetime.

Our CARE investment philosophy addresses this directly through what we call the “4-year pause button.” We structure your portfolio so that even if markets experience a significant downturn, you have approximately four years of income set aside in conservative assets. You wait for markets to recover, then replenish your income buffer from growth assets that have had time to rebound.

Centrelink and Age Pension Planning

The Age Pension eligibility age is 67. Even if you do not expect to qualify for the full Age Pension, understanding how Centrelink assesses your assets and income is essential for pre-retirement planning. The way you structure your finances in the years before you turn 67 can significantly affect your Centrelink entitlements, including the Pension, Commonwealth Seniors Health Card, and Rent Assistance.

We help you understand how the income test and assets test interact, how deeming rates apply to your financial investments (deeming rates increased from 20 September 2025 for the first time since 2020), and how to position your finances to maximise your entitlements without compromising your lifestyle or investment strategy.

Retirement Income Planning and Passive Income

Perhaps the most important shift in pre-retirement planning is moving from a mindset of accumulation to one of income generation. We model different retirement scenarios: what happens if you retire at 60 versus 65? What income will your super generate? How does part-time work in the early years affect your long-term position? These are the questions proper pre-retirement planning answers with clarity.

Insurance Review and Estate Planning

As you approach retirement, your insurance needs change. You may no longer need the same level of life insurance or income protection cover. At the same time, your estate planning becomes more important. We review your existing insurance arrangements to ensure you are not paying for cover you no longer need, and we work with your legal advisers to ensure your superannuation death benefit nominations, powers of attorney, and wills are aligned with your overall plan.

If you are also beginning to think about aged care for yourself or a parent, our Investing in Aged Care Decisions service can help you navigate RADs, DAFs, and the financial complexity of aged care. For those with self-managed super funds, our SMSF service ensures your fund is structured optimally for the transition into retirement phase.

Our Five-Step Pre-Retirement Planning Process

Discovery

We start by understanding your complete financial picture, your goals for retirement, and what matters most to you.

Analysis

We model your retirement scenarios using current super balances, contribution strategies, expected returns, and Centrelink entitlements.

Strategy

We develop a comprehensive pre-retirement strategy tailored to your situation, covering super, investment structure, tax, and risk.

Implementation

We put the plan into action, coordinating with your employer, super fund, accountant, and solicitor as needed.

Ongoing Review

We meet with you regularly to track progress, adjust for changes, and ensure you stay on track for a confident retirement.

The Pre-Retiree pathway is the third stage of our Pathway to Wealth™ lifecycle journey. Whether you have worked with us through the Foundations and Wealth Builder stages, or you are coming to us for the first time, we will meet you where you are and build a plan that gets you where you want to be. And when you are ready to make the transition, our Retire in Style pathway ensures a smooth handover into retirement income management.

Meet our team of experienced advisers who guide pre-retirees through this important transition every day.

Frequently Asked Questions About Pre-Retirement Planning

The preservation age for all Australians is now 60. Once you reach 60 and leave an employer (even temporarily), you can access your full super balance. If you continue working, you can access super through a Transition to Retirement pension, which allows you to draw between 4% and 10% of your balance each year. At age 65, you can access your super regardless of your employment status. It is important to note that the Age Pension eligibility age is 67, which is separate from your super preservation age.

The amount you need depends on the lifestyle you want in retirement, whether you own your home, and whether you are eligible for any Age Pension. As a general guide, the ASFA Retirement Standard suggests a couple needs approximately $690,000 in super (at age 67) for a comfortable retirement, or around $595,000 for a single person. However, your actual needs may differ significantly. A personalised retirement projection from Insight Wealth Planning can give you a clear picture based on your specific circumstances.

A Transition to Retirement (TTR) strategy allows you to access a portion of your superannuation as an income stream once you reach preservation age (60), while continuing to work. This can be used to reduce your working hours while maintaining your income, or it can be combined with salary sacrifice contributions to reduce tax and boost your super balance. From age 60, TTR pension income is generally tax-free, making it a tax-effective planning tool for the years leading up to full retirement.

The CARE investment philosophy used by Insight Wealth Planning includes a “4-year pause button” concept. Your retirement portfolio is structured so that approximately four years of income is held in conservative, stable assets. If markets experience a significant downturn, you can continue drawing income from these conservative assets without selling your growth investments at a loss. This protects against sequencing risk, which is the danger of a market crash occurring just as you begin drawing on your portfolio.

For FY2025-26, the concessional (before-tax) contribution cap is $30,000 per year, and the non-concessional (after-tax) cap is $120,000 per year. If your total super balance is below $500,000, you may be able to carry forward unused concessional caps from the previous five years. If you are under 75 and your total super balance is below $2 million, the bring-forward rule may allow you to contribute up to $360,000 in non-concessional contributions over three years. The SG rate from your employer is 12% of ordinary time earnings.

Yes. The five to ten years before retirement are the most critical period for financial planning. A qualified financial planner can help you maximise your superannuation contributions, implement tax-effective strategies like transition to retirement pensions, structure your investments to manage sequencing risk, plan for Centrelink entitlements, and create a sustainable retirement income plan. At Insight Wealth Planning in Newcastle, our Pathway to Wealth™ methodology provides a structured approach specifically designed for pre-retirees.

Ready to Start Planning Your Retirement?

The best time to start planning for retirement is five to ten years before you want to stop working. If you are in the pre-retirement stage and want clarity about your future, book a consultation with our team today. We will show you exactly where you stand and what steps will make the biggest difference to your retirement outcome.