A Decade to Go: Planning for Retirement with Purpose, Not Panic

If retirement is five to ten years away, now is the perfect time to prepare—calmly and with intent. There’s no need to rush or overhaul your life. Thoughtful, consistent actions today can set the stage for a secure and fulfilling retirement journey.

Step 1: Clear the Decks—Deal with Debt

Before turning your focus to superannuation balances or future travel, consider your current financial obligations. Carrying significant debt into retirement may increase financial pressure during a time when your income becomes more stable and predictable.

Begin by listing all current liabilities—mortgage, personal loans, credit cards, car finance—and assess your ability to reduce or eliminate them over time.

Consumer debt, such as high-interest credit cards, should generally be prioritised. While some level of housing debt may be manageable, the goal for many is to enter retirement with as little debt as possible. If that's not feasible, create a realistic repayment strategy now to reduce long-term stress.

Step 2: Know Your Numbers—What Will Life Cost?

Getting a clear picture of your expected retirement expenses is critical. Some costs—such as commuting or work attire—may drop, while others—like healthcare or travel—may rise.

Work out how much income you may need each year to maintain your desired lifestyle. This helps create a personalised retirement funding target, rather than aiming for a generic figure.

Forecasting this early allows you to assess whether your current savings rate, super contributions, or investment approach are on track—or whether changes are needed.

Step 3: Rethink Where You Live

Your home is not just a place of comfort—it’s also a major financial asset and potential contributor to your retirement plan.

Questions to ask include:

• Will this home still suit my lifestyle and health needs in 10–20 years?

• Would downsizing free up capital or reduce costs?

• Do I want to be closer to family or amenities?

In some cases, selling the family home may enable you to make a downsizer contribution to superannuation, subject to eligibility. These contributions, which are not subject to standard contribution caps, can enhance your retirement funding. However, eligibility criteria apply and tax and Centrelink implications should be considered.

Step 4: Get Strategic with Super

With a decade to go, now is the time to actively engage with your superannuation strategy.

Review your investment allocation. If you’re still in a high-growth option, that may or may not suit your evolving risk tolerance and timeframe. Think about how you’ll draw income from super in the early retirement years and how your portfolio can be structured to support this.

Some individuals explore a bucket strategy: keeping 2–3 years of income in more stable assets like cash or fixed interest to reduce the need to sell growth assets during market downturns.

You can also consider increasing your contributions through:

• Salary sacrifice arrangements, or

• Personal deductible contributions (ensuring a valid Notice of Intent is submitted on time).

Both may provide tax advantages but should be weighed carefully against contribution caps and your broader financial situation.

Step 5: Live the Life You Want—Now

Retirement isn’t a destination—it’s a phase of life that ideally builds on what you already enjoy. If you’ve been putting off hobbies, volunteering, or personal projects, consider trying them now.

This helps clarify what activities truly matter and ensures a smoother psychological transition away from full-time work.

Building these habits early can reduce the sense of loss that some feel upon retirement and replace it with excitement and purpose.

Final Thought: It’s a Transition, Not a Deadline

Retirement isn’t defined by a set age or super balance—it’s a personal and financial transition.

The most effective approach is to plan deliberately, using realistic assumptions and a long-term view. By addressing your debt, forecasting your lifestyle needs, reviewing your living arrangements and super strategy, and investing in your future lifestyle now, you create a more confident and meaningful path to retirement.

Reminder: Everyone’s situation is different. This article is general in nature and does not consider your personal objectives, financial situation, or needs. Before acting, speak with a licensed financial adviser and review any relevant product disclosure statements.