Make a retirement plan

A good retirement plan gives you confidence that you're prepared for the future.

Set your retirement goals

A good first step is to think about what you want your retirement to look like. Then set some clear goals.

When do you want to retire?

Many different things can shape when you retire, including:

• your money
• your health
• when you feel ready to stop working.

Many people plan retirement with a partner or family member. For others, health or changing work opportunities takes the decision out of their hands. Regardless of your situation, it helps to set a rough date to work towards. There’s no fixed age you must retire, but rules apply to when you can access your super.

How do you want to live?

Think about what you want your days to look like in retirement. Do you want more time with family and friends, to volunteer, travel or enjoy hobbies? Retirement gives you the chance to focus on what matters most to you.

What does staying healthy in retirement look like to you?

Good health helps you enjoy retirement. For most people, the basics matter: stay active, eat well and manage stress. Think about the habits and routines that work for you.

If you have ongoing health needs, consider what support you may need and what it could cost.

Will you need to support others?

If you plan to support family members with money or care, include this in your plan. This might mean helping adult children, looking after grandkids, or supporting older parents. Planning for it now can help make things easier later.

What will work look like for you?

Retirement doesn’t always mean stopping work entirely. You might cut back to part-time or casual work. Or you might consult or freelance. A transition to retirement can help your savings last longer and help you stay connected. There’s no one right answer. Choose what works best for you.

Where do you want to live?

Your home is a big part of your retirement plan. Will you stay where you are, downsize or move? You might want to live closer to family, or even live with them. Or you may want to move somewhere that suits your lifestyle. See your home in retirement for more information.

Work out your financial position

A good next step is to get clear on your finances.

What you do in retirement – where you live and how you spend your time – often shape your costs the most.

Assess your assets and income

Take stock of what you own and the income you may have in retirement.

• Superannuation: check your balance. You can also find and combine old super accounts. Before you consolidate, check if you’ll lose any insurance or other benefits. Learn more about consolidating your super.
• Look at your personal savings: you may have money outside super. This could include savings accounts and investments like shares, managed funds or property.
• Government payments: depending on your age and situation, you may qualify for government payments like the Age Pension. You may also get help such as pensioner concessions, health benefits and tax offsets.
• Other income: if you plan to keep working, or earn business income, think about what you’ll keep in retirement.
• Inheritance: if you expect an inheritance, you can include it in your plan. But don’t rely on it until you receive it.

Find out more about retirement income sources.

Understand your living costs

Understanding what you spend now will help you plan for retirement.

• Housing: rent or mortgage, rates, insurance, maintenance.
• Utilities: electricity, gas, water, phone, internet.
• Food: groceries, takeaway, dining out.
• Clothing and household goods: clothing, personal care, furniture, appliances.
• Health and leisure: health insurance, healthcare, social activities, fitness, streaming, holidays (including travel insurance), gifts.
• Transport: car registration, insurance, running costs, public transport.

For more guidance and information, see work out how much you need to retire.

Build your retirement income

Once you know your finances and likely living costs, you can see if your income will cover them. If you can, take action early. It can make a big difference later.

Here are some options you might think about.

• Change your retirement age: work a bit longer so you can keep adding to your super.
• Make extra super contributions: if you can afford it, add more to your super. This can boost your retirement income and may reduce your tax.
• Review investments, performance and fees: check your super’s fees, investment options and performance. High fees and low investment returns can reduce your retirement income.
• Review your super investment mix: if it’s been a while, review your investment mix. As retirement gets closer, you may prefer less ups and downs in your balance. A more conservative option can reduce short-term changes, but may also mean lower long-term returns. See super investment options.
• Explore government support: the Age Pension and other government benefits may help in retirement if you need them. You may also be able to get support while you’re still working.
• Keep working part time: you may choose to transition to retirement and work fewer hours to top up your income.
• Pay down debt: if you can, reduce or clear debt before you retire. If you own a home, downsizing may free up cash.
• Review current living expenses: look for costs you may no longer need, such as a second car or work-related expenses.
• Decide how much to draw from super: if you move your super into an account-based pension, you can decide how much to withdraw each year, as long as you meet the government minimum drawdown rules. If you keep your super in an accumulation account, these minimums don’t apply.
• Consider seeking advice and information: if you are unsure, talk to your super fund or a licensed financial adviser. You can check an adviser's details on ASIC's Financial Advisers Register. You can also use Services Australia free financial information service webinars.

Plan for different life stages

Retirement isn’t one moment. It can have many stages that change with you, alongside your needs and priorities.

Everyone’s retirement plan will look different. Some people will rely mostly on super and savings. Others may rely more on government support, like the Age Pension.

Wherever you’re starting from, it helps to understand the stages of retirement. It can help you feel prepared and confident.

Change your plan as your life changes

Retirement isn’t a fixed path. Life changes, and your plan can change with it. Check in on your finances, lifestyle and health now and then to stay on track.

Thinks can change without warning, like your super balance, your health, or family responsibilities. Staying flexible can help you adjust and feel in control.

You might update your budget, review your investment risk, or look for other income options.

It also helps to keep up with changes to super and government benefits, so you can decide with confidence.

Get help if you need it

If you’re not sure what to do next, talk to someone you trust. You can also contact your super fund or registered financial adviser.

Services Australia offers a free financial information service to help you understand super and government payments.

Other things to think about

Depending on your situation, you may want to think about a few other things to help your money last in retirement. Here are some topics that can help.