Is it too late to start planning for retirement if I’m in my 50s or 60s?

Retirement planning is one of the most important financial decisions you’ll ever make, and the earlier you start, the better. But what if you’re starting late? The good news: it’s never too late.

Nearly two-thirds of Australians retire earlier than expected, often due to job loss, health issues, caring for loved ones, or workplace changes. Retirement isn’t always a choice; it can become a necessity. That’s why acting now, whether you’re in your 50s, 60s, or beyond, is one of the most empowering things you can do for your future self.

Because retirement isn’t just about money. It’s about freedom, security, and the ability to live life on your terms, whether that means travelling, spending time with family, volunteering, or simply enjoying a slower pace.

Why start planning now?

• Unexpected retirement happens: Health issues, job loss, or caring responsibilities can force early retirement.
• Superannuation gaps: Divorce, career breaks, or part-time work can leave your super short.
• Longevity risk: Australians are living longer, meaning your savings need to last decades.

Where do you begin?

Before making changes, understand your financial position:

• Superannuation balance
• Other savings or investments
• Debts (mortgage, credit cards, personal loans)
• Expected retirement income sources (Age Pension, rental income, part-time work)

Boosting your superannuation

Even if you’re starting later, there are ways to accelerate your super growth:

• Salary sacrifice: Contribute pre-tax income into super to reduce taxable income and boost savings.
• Personal contributions: Claim a tax deduction or qualify for government co-contributions.
• Catch-up contributions: Use unused caps from previous years to contribute more (check annual limits).

Also review your super investment options to ensure they align with your risk tolerance and time horizon.

Dealing with debt before retirement

Carrying debt into retirement can limit your freedom and peace of mind. If possible, aim to reduce or eliminate it before you retire.

Options include:

• Using superannuation or savings to pay off loans
• Downsizing your home
• Restructuring your finances

A financial adviser can help you assess the pros and cons of each option and guide you toward decisions that support both your lifestyle and long-term financial wellbeing.

Reassess your lifestyle goals

Retirement is about how you want to live. Ask yourself:

• Where do I want to live?
• How much travel do I want to do?
• Will I continue working part-time or volunteer?

Clarifying your lifestyle goals helps shape your financial strategy and ensures your retirement plan reflects what truly matters to you.

How much money do I actually need to retire?

Create a retirement budget:

• Estimate future expenses (housing, food, travel, healthcare)
• Compare them to expected income
• Factor in longevity risk.Your savings need to last as long as you do

Understanding your enitilements

Government support can play a key role in retirement:

• Age Pension: Available from age 67 (for those born after 1957), based on income and assets.
• Concession cards: Provide discounts on healthcare, transport and utilities.
• Rent assistance: If you’re renting privately and receive the Age Pension.

Even if you don’t qualify now, you may be able to restructure your finances to maximise future entitlements.

Review your plan regularly and seek professional advice

Retirement planning isn’t a one-time event. Life changes and so should your strategy. Regular reviews help you:

• Adjust for market movements or legislative changes
• Update your goals and spending patterns
• Ensure your estate planning is current

Flexibility is key. Whether you retire gradually, take a sabbatical, or pivot to a new venture, your plan should evolve with you.

How I’ve helped clients plan for retirement

After divorcing later in life, my client faced a significant financial challenge. A large portion of their superannuation had been lost in the property settlement, leaving them with the dual task of rebuilding their super while continuing to pay off the remaining mortgage.

To tackle this, I worked with the client to develop a strategy that worked with their cash flow throughout the year. Extra funds were placed into the mortgage offset account, reducing interest and helping manage repayments. Then, towards the end of the financial year, those funds were withdrawn from the offset and contributed to super boosting the balance and allowing the client to claim a tax deduction on the contribution. This deduction lowered their marginal tax rate, and when the tax refund arrived, the funds were returned to the offset account, continuing to save interest on the mortgage.

This approach allowed the client to rebuild their super in a tax-effective way while still reducing mortgage costs, a smart, practical solution to a complex situation.

Q&A: Common Retirement Questions

Start today for peace of mind

Whether you’re starting late, refining your strategy, or preparing for the unexpected, our team of experienced financial advisers are here to guide you with expert, personalised support. We’ll help you review your current financial position, uncover any gaps in your retirement goals, and create a flexible strategy that gives you clarity and confidence for the years ahead.