5 easy steps to plan for retirement
24 October 2023
4
min read
Your retirement will be unique. But a common way to help you achieve the retirement you want is to have a plan.
It’s never too soon or too late to plan for your life after work. To start with, it's important to think about what your retirement lifestyle might look like.
Will it involve adventure and travel, relaxing and reconnecting, or perhaps spending time with grandchildren?
You might also want to keep working part-time, joining the growing tribe of “WOBBLES”, Work-on Baby Boomers Looking for Extra Savings. A report on retirement planning by the Association of Superannuation Funds of Australia (ASFA),1 found a rise in WOBBLES since 2020 for two main reasons:
- Increased demand for experienced workers because the pandemic restricted the inflow of skilled workers and students
- Pre-retirees wanting to keep boosting their super balances by working on.
Whatever your retirement might look like, it helps to start with a plan. But more than four in five Australian pre‑retirees feel retirement planning is at least moderately complicated, according to a survey by Super Consumers Australia.2
Retirement planning doesn’t need to be complicated
These 5 simple steps can help you get the clarity and confidence to start planning.
Know when you can access your super
You can generally access your super at age 65 or when you stop working and reach your preservation age. If you were born on or before 30 June 1964, you have already reached your preservation age. If you were born after that date, your preservation age is 60. Learn more here.
How much super will you need in retirement?
How much super you might need depends on your personal circumstances and the lifestyle you want in retirement.
The Association of Superannuation Funds of Australian (ASFA) puts together a Retirement Standard that can help. It shows how much money you’ll need to fund either a modest or comfortable standard of living in retirement. It also details the breakdown on what you might spend money on.
The June 2023 quarter Retirement Standard figures show that for a comfortable lifestyle, a couple aged 65-84 needs $70,806.43 a year and a single person needs $50,207.02. For a modest lifestyle, a couple needs $46,946.62 a year, and a single person needs $31,867.31.
Will you have enough super?
Log into Member Online or our app to keep track of your super.
You can also use our Retirement Income Calculator to help you check if your super is on track to help you achieve your retirement goals.
If you have a gap between what you’ll have and what you might need, there are a number of ways you can grow your super before you retire.
Will you be eligible for government benefits?
As well as your super, you might qualify for the Age Pension or other government benefits. To be eligible for the Age Pension you must meet the age and residency requirements and pass the income and asset test.
You may be able to combine the Age Pension with your super savings in retirement.
Seek financial advice
Get the most out of your super and be confident you are making informed decisions about your retirement. We have qualified financial advisers3 who can help you online or over the phone with simple advice about your account. We include this service with your membership.
We aim to make it easy to get advice by offering:
Online Advice3 – Log in to Member Online for our online advice service about your super.
Phone Advice3 – Call 1300 360 750 for simple over-the-phone advice about your account.
Your Adviser – We can work with your adviser. If you don’t have one, we may refer you to an accredited external financial adviser.4
1. ASFA, February 2021, Rethinking retirement: The impact of demographic change and the pandemic on retirement planning in the 2020s, at superannuation.asn.au
2. Super Consumers, February 2021, Retirement Planning Survey, at superconsumers.com.au
3. Employees in the Australian Retirement Trust group provide advice to members and employers as representatives of QInvest Limited (ABN 35 063 511 580, AFSL 238274) that is wholly owned by the Trustee as an asset of Australian Retirement Trust. QInvest Limited is a separate legal entity responsible for the financial services it provides. Eligibility conditions apply. Refer to the Financial Services Guide at qsuper.qld.gov.au/guides for more information.
4. The Trustee has established a panel of accredited external financial advisers who are not employees of the Australian Retirement Trust group. The Trustee is not responsible for the advice provided by these advisers and does not receive or pay any referral fees. These advisers will explain to you how their advice fees are determined.