Looking forward to retirement doesn’t have to be a daunting prospect for Aussies, but for too many, it’s more a source of stress and anxiety than excitement.

According to a study from the Australian National University, more than 50% of Australians have some major concerns about throwing in the day job. For some, it’s the worry about money, while for others it’s the emotional hit of giving up a career that pretty much defines who they are and what they do on a daily basis.

If you’re fast approaching retirement and feeling a bit lost, you’re certainly not the only one. What you want to get out of retirement is going to be different for everyone – maybe you want to travel, catch up with mates or downsize to a smaller house in the country. The good news is there are practical steps you can take right now to get a handle on planning for retirement and feeling more confident about what’s coming next.

The first thing you need to do is set some financial goals for the future – and this time it’s both your personal & financial future. This is where preparation really pays off and helps you work out what you can realistically afford to do in retirement.

Start with a Financial Plan for Your Retirement

Money worries are the main source of retirement anxiety for a lot of people, and getting a clear picture of your financial situation is a great way to replace uncertainty with clarity – and that’s where your retirement planning starts.

Start by reviewing your current income, outgoings, assets and debts, and then use that to figure out how you’re tracking. If you don’t already keep a budget, now’s the perfect time to start one – and it can give you a real insight into where your money’s going and where you can cut back. Using this info, you can set financial goals that are realistic and achievable, and make sure you’ve got a strong cash flow to support you in retirement. For example, lots of people use about two-thirds of their current living costs as an estimate for retirement – but some people might find they need more, especially if they’re planning on doing a lot of travelling or taking up hobbies in their early retirement years.

Another thing to think about is whether downsizing your house might make a difference to your retirement plans. Under the government’s downsizer contribution rules, eligible Aussies can pop the proceeds of selling their home into their super fund, which can be a real bonus when you need it most. Super is a long-term savings plan that’s tax-friendly, and it’s an essential part of Australia’s three-tiered retirement system, along with private savings and the age pension. Your employer will be contributing a minimum amount of your income into your super fund, and if you boost your contributions before you retire, that can give you a higher income later on. A super fund can hold all sorts of investments like shares, property and bonds, and the earnings are taxed at just 15%, which can be a real advantage.

Another good idea is to practice living on the income that you might get when you retire – and that includes any account-based pension payments as well as the age pension if you’re eligible. That way, you can get a good idea of where there are any gaps in your budget and adjust your expectations before it’s too late.

For lots of people, easing into retirement by working part-time or reducing their hours is a great way to make the transition to retirement easier – and there are some special strategies that can help with this. For example, a Transition to Retirement strategy can let you access some of your super between the ages of 55 and 60, depending on your birth date. And with a TTR pension, you can draw out up to 10% of your super balance each year – and once you’re 60 and meet the relevant conditions, you can take the lot tax-free through an account-based pension or a lump sum. And as an added bonus, there are minimum drawdown rules for account-based pensions, and the amount you can move into the tax-free retirement phase is capped at $2 million, indexed over time.

Having a financial adviser can really help you navigate this stage of your life, with all sorts of advice and guidance – from retirement income and tax planning through to estate planning and investment strategies.

Don’t Forget the Emotional Side of Retirement Planning

It’s not all about the money, of course. Retirement is a big deal – it’s a chance to do all the things you’ve been putting off, but it can also be a bit of a culture shock. Lots of people find that they miss the routine, the social interaction and the sense of purpose that comes with working.

So what can you do to make the transition easier? One thing is to start building a fulfilling lifestyle while you’re still working. Think about the things you want to do in retirement – what activities will you enjoy? What social connections do you want to make? What kind of future do you want to create? Community groups, sporting clubs, volunteer organisations and hobby groups can all be great ways to stay active and connected.

And don’t put it off until you’re retired – start enjoying yourself now. Developing these interests while you’re still working can make the transition to retirement a whole lot smoother.

Ultimately, the goal is to stay active, connected and engaged, and to build a life that supports your financial future – not just to retire from work.

The Adventure That Awaits You in Retirement Planning Starts Today

Retirement isn’t the end, it’s really the start of a whole new adventure. Though you won’t have every last detail all wrapped up right now, taking a few thoughtful steps forward at this time can really help with building wealth, and securing that financial future for yourself with a solid plan – one that’s backed by some real day-to-day advice.

If you get your retirement planning right, then it can be this amazing chance to be a little more carefree, go after some new things you’ve always wanted to try and focus on the things in life that really matter to you. You’ll even get a head start on that by scheduling a meeting with a financial advisor, ongoing support means you get the financial guidance you need as things – and your life – change.

Get in touch to see how we can help you navigate this exciting next chapter.