If retirement is just around the corner for you – or perhaps for your children – the current financial climate may leave you feeling a little uneasy. Watching market fluctuations can lead to concerns about whether your superannuation will be enough to see you through and provide a comfortable retirement.

However, this isn’t a time for hasty decisions. If you’re feeling unsure, reviewing your current portfolio and investment strategy with one of our experienced financial advisers is a wise move.

After all, the average Australian spends around 20 years in retirement. It’s important to develop a strategy that considers not only current market conditions, but also the risks and opportunities that may arise in the years ahead. Careful planning is essential when preparing for retirement, as decisions made now can have a long-term impact.

As one of your most significant retirement assets, your superannuation deserves a carefully considered assessment—especially as you approach a new life stage.

Here are five useful tips to help ease you into the next chapter.

1. Review your risk profile and portfolio allocation

Generally speaking, investors adopt a high-growth approach when they’re younger to take advantage of potentially higher returns. However, as with typical share market cycles, there will be periods of fluctuation. Having a long-term strategy in place allows time to recover from market downturns before retirement.

2. Calculate retirement expenses

For some, the cost of living may decrease after finishing work, due to reduced expenses such as commuting and maintaining a work wardrobe. However, if you plan to travel more, purchase a new vehicle, or renovate your home, these additional expenses need to be factored in when calculating how much you’ll need.

According to the Association of Superannuation Funds of Australia (ASFA), the average annual budget to maintain a comfortable lifestyle in retirement is $73,077 for a couple and $51,805 for a single person. To maintain a modest lifestyle, ASFA estimates a couple will need $47,470 per year, while a single person will need $32,897. Both estimates assume you already own your home.

You can find easy-to-use budgeting tools on the MoneySmart website to help you calculate your expenses and estimate your income from super and the Age Pension.

3. Take action on mortgages and loans

Starting retirement with manageable or low levels of debt can help you feel more financially stable.

If you’re still repaying a mortgage after retiring, you might consider downsizing your home or using your superannuation to reduce the debt. However, it’s important to consider the tax implications and ensure any actions comply with superannuation laws.

If you’re exploring either of these options, our expert financial advisers can explain your choices and obligations in detail.

4. Checking your timing

Knowing when and how you can access your superannuation is essential for effective retirement planning.

You can start using your super to fund your retirement once you reach your preservation age, which is generally age 60. You may also choose to begin a Transition to Retirement Income Stream (TRIS) while continuing to work.²

Alternatively, if you continue working beyond your preservation age, you can withdraw your super once you turn 65—regardless of your work status.

There are also limited circumstances where you may be able to access your super early, such as in cases of severe illness or financial hardship. However, strict eligibility criteria apply.³

5. Decide how to withdraw your funds

You may be able to withdraw your super as a lump sum, depending on the rules of your fund. This could be the entire balance or a portion of it, or you may choose to receive regular payments instead.

If you opt for regular payments (made at least once a year), this is known as an income stream. At this point, your super account moves from the accumulation phase—where contributions are made—to the pension phase.

Once you begin drawing an income stream from your super, you must meet minimum withdrawal requirements. For example, if you are under age 65, you are required to withdraw at least 4% of your super balance each year. This drawdown rate increases as you get older.⁴

Seek professional advice

Planning your retirement with confidence starts now. Whether you’re looking to maximise your super, reduce debt, or make sense of your income options, our experienced financial advisers can help you and your loved ones make informed decisions for a more secure financial future.