Five simple steps to boost your financial confidence in retirement

While retirement can be an exciting chapter filled with dreams of travel, family time, and the freedom to enjoy life on your own terms, it can also bring with it a sense of uncertainty.

Stepping away from the security of a regular income after decades in the workforce often sparks concern about whether the future will be financially secure.

“Do I have enough savings to live the retirement I want? What if unexpected expenses arise? Will rising living costs eat into my nest egg?” These are the kinds of questions many older Australians find themselves asking, and they’re fuelling a wave of financial anxiety.

A recent survey from AMP laid these concerns bare, revealing that more than one in three Australians aged 65 and over feel financially insecure, worried their money won’t last. The divide is also clear between men and women, with nearly three in five men confident about their retirement, compared to just two in five women.

Retirement should be a time to enjoy your freedom, not be bogged down with financial worries. With this in mind, Starts at 60 spoke with Tara Saxon, a Certified Money Coach and keynote speaker, to unpack the key financial concerns facing retirees and explore practical steps to build the confidence and security needed for the retirement you want.

Saxon said the reason so many older Australians feel insecure about their finances in retirement is “because retirement doesn’t look like it used to.”

“The cost of living is biting, debt is hanging around longer, and people are living 20 or 30 years past retirement — which is fantastic, but expensive,” she explains.

“For many of my clients, the real fear isn’t just ‘will I run out of money?’— it’s ‘will I run out of choices?’ That’s what keeps them up at night.

“And here’s the kicker: being intentional with money is ALL about options and choices. When you keep setting yourself up with options, you stay confident, you stay aligned — and you stop lying awake at 2am worrying if you’ll be okay.”

While concerns about your financial security in retirement are justified, Saxon says “perception adds fuel to the fire.”

“We compare ourselves to others, spiral into worst-case thinking, and suddenly it feels hopeless. And here’s what surprises me: I coach women in their 60s and 70s, and so many of them still don’t run a budget, still have sneaky spending habits, and still feel pressure to keep up with the Joneses,” she says.

“Even in retirement! You’d think by then we’d all have it sorted. The truth? Once you crunch the numbers and face reality, most people realise they’ve got more choices than fear would have them believe.”

So how can soon-to-be-retirees get on top of their finances and achieve peace of mind while also setting themselves up for a comfortable retirement?

Saxon offers the following practical steps:

• Step one: Own your cashflow — know where every single dollar is going.
• Step two: Give your super a health check — fees, contributions, investment mix.
• Step three: Attack debt — especially the high-interest stuff.
• Step four: Get clear on what “enough” actually looks like for you. Be specific. Dial it in. This is no time to wing it and hope for the best.
• Step five: Build a budget for the life you actually want — the travel, the hobbies, the grandkids. And if it all feels too hard, get support. The worst move is sticking your head in the sand and hoping it’ll somehow sort itself out.

In addition to the above, there are several “quick wins” Saxon suggests that can give some peace of mind in the immediate when it comes to your finances.

“Cancel those forgotten subscriptions. Renegotiate bills and insurances you haven’t looked at in years. Refinance that dusty old loan,” Saxon suggests.

“These ‘money leaks’ quietly drain your future. Close them off and you’ll feel the relief immediately.

“Another one? Smash a small debt fast — the momentum is addictive. And here’s a spicy one: do you really need to “upgrade” your car just because the warranty ran out, or is that just an old habit past its use-by date?

“Every little decision like that frees up cash and builds confidence. And confidence is the real currency of retirement.”

While financial concerns in the lead-up to retirement are common, they don’t need to linger. By taking a few simple, practical steps, you can ease these concerns and enjoy the secure, fulfilling retirement you’ve worked so hard to achieve.

Read more: Is there really a “magic number” for retirement savings?

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.