Decades of saving is a hard habit to break. For many people approaching or entering retirement, the switch from accumulation to spending is as much a mindset shift as a financial one. With the right plan and the right support, it’s one you can make with confidence.

Start with a plan

The best thing to do at any age is to form a clear picture of the kind of lifestyle you want in retirement and when you’d like it to start. That clarity determines how much work needs to be done between now and then.

A good starting point is the retirement calculator that many superannuation funds provide to their members. They are generally useful for providing you with an understanding of the ballpark territory you’re in. However, they are limited: basic data in means basic insight out. These simple tools won’t account for your specific goals, tax position or the strategies that could meaningfully improve your outcome. That’s where professional, independent advice adds an extra, personalised layer.

Set your strategy

Once you know what you’re aiming for, the right strategy will get you there. That means thinking about where your wealth should be growing – whether that’s in a bank account, an offset account, superannuation or some combination – in a way that minimises tax now and maximises access later.

I have this conversation with hundreds of Australians every year, so I know what people at different stages want and what tends to work, even when someone comes to me with no idea where to start. An independent adviser will work with you to understand your starting point and then shape something that actually fits your situation.

Adjust your expenditure

People generally hit their career peak around 40 or 50. While this is where your earning capacity is usually at its highest, it’s also when you’re most time poor. Cleaners, gardeners and convenience spending can buy back time you don’t have and household budgets reflect that.

Retirement changes the equation. Suddenly, you do have the time, which means some of those ancillary costs may no longer make sense. It’s worth having a clear eye on your expenditure as you approach retirement, not to be restrictive, but to ensure your income and asset base can support your planned outgoings.

Protect your capital

One of the most important shifts to make in the years leading up to retirement is to actively reduce your exposure to volatile investments. When markets are performing well, there’s a natural human desire to keep maximising returns but at this stage of life, the greater risk is a significant loss, not a missed win.

Think about what it would mean to retire today and immediately face a market event like the 2008 global financial crisis (GFC). A $1 million portfolio could become $600,000 very quickly and trying to recover while drawing down from it at the same time is extremely difficult. Being proactive about de-risking before that transition – such as reallocating away from higher-risk investments or repaying debt while markets are still doing well – means a major market event is far less likely to derail your retirement plans.

Avoid the pitfalls

The most common trap in retirement is a lack of control over expenditure or an unrealistic idea of actual spending levels. That doesn’t mean tracking every dollar; it means having a clear sense of what you want to spend each month and building an income stream around that figure.

Regular check-ins with a financial adviser can help keep things on track. Catching a problem early, whether it’s an unexpected expense or a holiday that costs more than planned, is far easier than discovering a pattern months or years down the line.

Enjoy the journey

Retirement is the destination but it doesn’t have to mean putting life on hold until you get there. Unfortunately, health can change more often and more quickly than any of us anticipate. Working a little longer at a more sustainable pace, rather than pushing hard to the finish line, often means arriving in better shape to actually enjoy it. The goal is longevity in the plan, not just in the portfolio.

Mark Grasso is a Partner, Financial Adviser and the Operations Manager at Oxlade Financial. Mark is a qualified Certified Financial Planner® and holds a Master of Financial Planning and Bachelor of Business (Financial Management).

Any information in this article is general in nature and does not consider any of your personal objectives, financial situation and needs. It is as intended, to be of a general nature only and NOT a recommendation to you. You should consider whether the information is appropriate to your needs, and where appropriate, seek personal advice from a registered financial adviser.