Retirement isn’t just about clocking out of work for the last time, it’s about entering a whole new stage of life. But before you trade work for a life of leisure, there a few important questions you need to ask yourself.
The answers could mean the difference between enjoying your retirement with confidence and worrying about whether your money will last.
Here are 6 key financial questions every soon-to-be retiree should consider:
The cost of retirement can be surprising. According to the latest ASFA Retirement Standard, couples aged around 65 need $75,319 a year for a “comfortable” lifestyle, while singles require $53,289.
That’s more than just paying the bills — it includes travel, dining out, and digital essentials like smartphones and internet plans. Ask yourself: Do my savings, superannuation, and any Age Pension support this lifestyle?
Superannuation is often your biggest retirement asset, but navigating contribution rules, withdrawal timing, and tax can be challenging. For example, after turning 60, most super withdrawals are tax-free, but getting the timing wrong could cost you. It’s worth checking with your fund or a financial adviser to make sure you’re making the most of your super.
Carrying debt into retirement, whether it be a mortgage, personal loan or credit card balance, can eat into your income quickly. Many retirees find that being debt-free gives far more peace of mind. Consider whether it makes sense to pay down what you owe before your work paycheque stops.
Health expenses can often be one of the biggest surprises in retirement. Private health insurance premiums, out-of-pocket medical bills, and even aged care costs can add up. It’s important to review your cover, understand what Medicare will and won’t pay for, and make sure to set aside some funds for unexpected expenses.
While it’s easy to budget for everyday expenses, when the unexpected rears its head, it often catches us off guard. Home repairs, replacing a car, or helping children and grandchildren financially can take a toll. However, building a “buffer” into your retirement plan can help you deal with the unexpected without any added stress.
Although it’s not the most comfortable topic to discuss, making sure your estate is in order is essential. That means keeping your will up to date, appointing powers of attorney, and checking your super’s binding death benefit nominations. These steps can give you peace of mind and make life much easier for your loved ones down the track.
Retirement is one of the biggest financial transitions you’ll face. By asking yourself these 6 key questions now, you’ll be better prepared to enjoy your later years without unnecessary financial stress.
Take the time to review your situation, talk things through with your partner, and, if needed, seek professional advice. The effort you put in today can help you create a retirement that’s not only secure but truly rewarding.
IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.
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