Money Moves in Your 60s: Planning for a Confident, Comfortable Retirement

Your 60s mark a major financial transition—from accumulating wealth to managing it with care. Whether you're continuing to work or approaching retirement, this is a crucial time to finalise your strategy. The steps you take now can help secure a more confident and comfortable retirement.

Here are the key financial considerations to help you prepare for retirement with clarity and control—not guesswork.

Superannuation: Your Retirement Engine

By your 60s, superannuation becomes a central pillar of your financial plan. With retirement in view, it’s time to ensure it’s working as effectively as possible for your needs.

If you're still working, making additional super contributions may be beneficial. Concessional (pre-tax) contributions can reduce your taxable income and are generally taxed at a concessional rate of 15% inside super. If your total super balance is under $500,000, you may be eligible to use the “carry-forward” rule to make catch-up concessional contributions using unused cap amounts from the previous five years.

Non-concessional (after-tax) contributions, while not deductible, can also grow within a concessional tax environment. Earnings on investments inside super are taxed at a maximum of 15% in accumulation phase and 0% in retirement phase.

Contribution caps and eligibility criteria apply. It’s important to understand the current rules or seek advice tailored to your situation before making super contributions.

Transition to Retirement: Easing Into the Next Phase

If you’re aged 60 or over and still working, a Transition to Retirement (TTR) income stream may be available. This strategy allows you to draw down up to 10% of your super balance per financial year while still contributing via your employment income.

Some individuals use TTR to supplement their income while reducing work hours. Others use the strategy to engage in re-contribution strategies or increase concessional contributions while managing tax efficiently. However, using this strategy effectively requires a clear understanding of superannuation rules, tax implications, and contribution limits.

Before commencing a TTR strategy, it’s essential to determine whether your fund allows it and to ensure that the arrangement aligns with your financial goals.

Set a Retirement Goalpost

Setting a prospective retirement date—whether at 65, 67, or later—can help bring your goals into sharper focus. This clarity allows you to plan for super access, government benefits, potential lump sum withdrawals, or downsizing options.

Knowing the income you may need in retirement is equally important. The “comfortable retirement” standard estimated by ASFA is over $70,000 p.a. for couples, but this may vary significantly depending on lifestyle, location, and other personal factors.

Everyone’s retirement budget is different. What matters most is identifying your own target income and ensuring your retirement plan is structured to support it.

Managing Debt Before Retirement

Debt can place strain on retirement cash flow. Wherever possible, having a strategy to reduce or eliminate debt before retiring is a sensible approach.

Some individuals use their super (when accessible) to reduce mortgage liabilities. For example, after age 60, a TTR income stream may assist in servicing debt while continuing to make super contributions, subject to eligibility and caps.

Another option is downsizing. If you’re aged 55 or over and sell a home owned for at least 10 years, you may be eligible to contribute up to $300,000 to super as a downsizer contribution, subject to the specific rules and your total super balance. This contribution is not counted towards non-concessional caps.

Note: Downsizer contributions are subject to specific legislative conditions and are not tax deductible. It’s important to ensure the home qualifies and that all relevant super and tax rules are considered.

Understanding Government Entitlements

At age 67, you may become eligible for the Age Pension, subject to income and asset tests. Planning ahead can help you structure your finances to improve eligibility or optimise other available support, such as the Commonwealth Seniors Health Card.

Gifting rules, deeming provisions, and Centrelink assessment of financial assets may affect your entitlements. For example, gifting large sums to family within five years before applying for the Age Pension may still count toward your assessable assets.

Keep in mind: These rules can change. Eligibility should be assessed closer to application, and you may benefit from seeking assistance with the process.

Reviewing Your Legacy and Estate Plan

Your 60s are also an appropriate time to ensure your estate planning is in order. Review your will, power of attorney, and superannuation nominations.

It’s important to understand that your superannuation does not automatically form part of your estate unless a valid binding death benefit nomination is in place and directed to your legal personal representative. Regularly review your super nominations and ensure they are current, valid, and consistent with your intentions.

Re-contribution strategies may also be considered to reduce the potential tax impact on non-dependent beneficiaries. These strategies are complex and should be discussed with a qualified adviser or tax professional.

Staying on Track: Strategy Over Perfection

If you’re feeling behind, don’t panic. Focus on what you can influence:

• Review and reduce expenses where possible.

• Consider topping up your super strategically.

• Understand the tax treatment of your retirement income options.

• Consider the implications of accessing super early or continuing to work beyond age pension age.

If your situation involves complexity—such as tax management, aged care, or estate planning—it may be beneficial to consult a licensed financial adviser. Under Australian law, personal advice can only be provided by a licensed or authorised adviser who has assessed your relevant circumstances.

Disclaimer

This article provides general information only and does not take into account your objectives, financial situation, or needs. The information is current as of the date of publication and may be subject to change due to legislative or regulatory updates. Before making any financial or investment decisions, consider consulting a licensed financial adviser and reviewing the relevant Product Disclosure Statement (PDS) or official government resources.