Retirement is an exciting chapter of life. It offers the opportunity to slow down, relax, pursue passions, and enjoy the fruits of your hard work. However, achieving a sustainable income during retirement can be challenging, so you need to be smart and plan for it. If you’re in your 30s or 40s, it’s a good time to start preparing for a comfortable retirement. Scroll down for some practical tips on financial planning for retirement to help you build a sustainable income for your golden years.
Know Your Retirement Income Options
You can have different potential income sources during retirement: your superannuation, the Government Age Pension, and any income-generating assets you may own, such as rental properties, vacation homes, collectibles, and shares.
Superannuation
You can usually access your super when you turn 60 and retire, open a Transition to Retirement Income account (we’ll discuss this more later) or turn 65 even if you haven’t retired. But the question is, will your super savings be enough to fund your golden years? So, as you plan for retirement, one aspect to focus on is knowing how much super you’ll need to retire. The number may depend on the lifestyle you want to have during retirement, but it’s safe to start calculating by deciding when you want to retire. Then, think about how long you’ll need your super to last because you might live for 20 or more years after you retire. Want to retire early? You’ll need to top up your super savings as early as now (we’ll talk more about this in the next section).
Account-Based Pension
Did you know you don’t need to withdraw all your super at once? An account-based pension allows you to receive a regular income from your superannuation while ensuring it remains invested. Your income continues until the account balance runs out, or you take what’s left as a lump sum.
Government Age Pension
As of March 31 2023, approximately 63% of Australians aged 65 and above receive either a partial or full Government Age Pension. This fortnightly payment can provide additional income if you qualify. To be eligible, you must meet specific age & residency criteria and pass an income and asset test. If you qualify, your Age Pension can supplement the income you receive from your super.
Assets
Your personal savings and assets, including properties and shares, can also contribute to your retirement income. So, it’s vital to understand how your assets fit into your overall retirement strategy. For instance, you may consider downsizing if your current home is larger than you might need during retirement. This could provide funds to contribute to your super from the sale of your primary residence.
Working During Retirement
While your age determines when you can access your super or apply for the Age Pension, choosing when to retire is your decision. Many individuals continue working well into their 60s and beyond. Gradually transitioning into retirement can help you strike the perfect balance between ending your career and embracing retired life. If you wish to keep working while accessing your super once you reach Preservation Age, consider setting up a Transition to Retirement (TTR) Income account alongside your regular super. This account offers added flexibility to enhance your take-home pay, let you work fewer hours or save more effectively.
Maximise Your Superannuation Contributions
Superannuation is likely a core element of your retirement planning in Australia. Currently, through the Super Guarantee, your employer must pay contributions of at least 11.5% on top of your salary into your chosen super fund, with the rate scheduled to increase progressively to 12% on July 1, 2025. This pool of money can grow over many years due to ongoing contributions & compound earnings.
Now, to make the most of your superannuation, consider the following strategies:
- Concessional contributions: These come out of your pre-tax pay and are usually taxed at just 15%, much lower than most employees’ marginal tax rate. You can contribute up to $30,000 annually, including your employer contributions.
- Non-concessional contributions: These are made from your after-tax pay, with no further taxes being applied. You can contribute up to $120,000 a year or $360,000 over three years.
To boost your retirement savings, consider contributing more to your super if you can. Remember, you can access your super when you reach 60 and retire. Again, the definition of ‘retire’ depends on your age:
- If you’re 60-64: You must have stopped working permanently or stopped working for any employer after you turned 60.
- If you’re 65 or older: You can access all your super, even if you’re still working.
By maximising your superannuation contributions and understanding the rules around accessing your super, you can build a stronger financial foundation for your retirement years. It’s also best to consult a financial planner to develop a tailored superannuation strategy that aligns with your retirement goals and circumstances.

Stay on Course with Your Investment Strategy
Apart from creating and executing a superannuation strategy, you also need an investment strategy to augment your retirement savings. More importantly, you need to stick to that strategy to see it pay off during your golden years. Market trends and fluctuations can be unsettling, but you must stay committed to a well-thought-out investment strategy. Avoid making impulsive decisions based on short-term market movements, as these can negatively impact your long-term goals.
To have peace of mind, review your investments regularly and consult a financial adviser to ensure your current strategies align with your retirement objectives.
Free Up Extra Money for Retirement
Boosting your retirement savings doesn’t always require drastic changes and high-rik moments. Here are some strategies to improve your cash flow as you plan to retire:
- Downsize Your Home: Are you now an empty-nester? Have you embraced the lifestyle of being a digital nomad? Selling your current home and moving to a smaller or co-living home can free up equity to invest in your retirement.
- Sell Unused Assets: You may have accumulated a lot of assets over the years. Consider selling items like a second car or recreational equipment you no longer use.
- Top Up Your Superannuation: Redirect any extra funds into your superannuation account to take advantage of compounding growth over time. Just keep your superannuation strategy in mind whenever you do it.
Minimise Expenses Where Possible
A sustainable retirement income isn’t just about increasing savings—it’s also about managing expenses effectively. Create a detailed budget to track where your money is going and identify areas where you can cut costs. For example, compare utility providers to find better deals or reassess insurance policies for potential savings. You can also start shopping smarter by taking advantage of discounts and concessions available to seniors. You may not notice it right away, but small adjustments to your spending habits can make a big difference over time.
Seek Professional Financial Advice
Preparing for retirement in Australia involves complex decisions about investments, superannuation, tax strategies, and more. Speaking to a qualified financial planner can provide insights and help you make informed decisions. A professional can:
- Assess your current financial situation and retirement goals.
- Develop a tailored strategy to maximise your retirement income.
- Offer expert guidance on investment options and risk management.
- Help you navigate nuanced superannuation rules and regulations.
- Assist you in utilising a relevant retirement plan calculator in Australia.
- Regularly track, review and adjust your plan as your circumstances change.
If you reside in the Camden and Narellan areas of New South Wales, our team here at Denis Cummins Public Accountants offers comprehensive financial planning services. We can help you create a personalised retirement strategy that aligns with your goals and risk tolerance.
Summing It Up
To sum it up, financial planning for retirement in Australia requires careful consideration and ongoing attention. It also entails taking proactive steps now—steps that can significantly impact your financial security in retirement.
One step you can take is reaching out to a financial planning expert, like our team here at Denis Cummins Public Accountants. Contact us today, and let us help set yourself up for a comfortable and enjoyable retirement.