So, you are planning to retire?

Retirement isn't just about finishing work - it's about starting a new chapter in life.

Whether you wish for travelling, spending more time with family, or simply enjoying a slower pace, planning your future is essential. The decisions you make leading up to retirement can shape your financial security, health, and lifestyle for decades to come.

In this guide, we'll break down the key steps to take at least one year out from retirement, six-months, three-months, and a month before retirement - so you can approach this exciting new milestone with confidence and clarity.

Before Retirement - Financial Checklist

• Review Superannuation: Check your balance, fees, and investment options. Consider consolidating multiple accounts and making extra contributions if possible.
  
  
• Estimate Retirement Income: Work out how much you'll need each year using tools like the ASFA Retirement Standard (Comfortable vs. Modest Lifestyle calculator).
  
  
• Review other income producing assets for appropriate risk and income.
  
  
• Calculate the projection of your financial assets value over the retirement period for clarification and risk purposes.
  
  
• Seek quality advice.
  
  
• Clear major debts: Aim to pay off your mortgage or car loan to reduce financial stress later, ideally not from Superannuation.
  
  
• Check Age Pension Eligibility: Understand income and asset tests and whether you qualify for Government support.
  
  

Personal

• Set Retirement Goals: Decide what you want to do - travel, volunteer, part-time, or focus on hobbies.
  
  
• Health Check: book a full medical check-up and plan for on-going health needs.
  
  

Lifestyle

• Housing Decisions: Will you stay in your current home, downsize, or relocate? Downsizing can free up money tax effectively and reduce costs.
  
  
• Social Connections: Think about how you'll stay connected - clubs, community groups, or family activities.

6-12 Months Before Retirement

Financial

• Create a Budget: Estimate monthly expenses and compare them to expected income from Superannuation, Pension, Investments, or savings.
  
  
• Plan Super Withdrawals: Decide if you'll take a lump sum or set-up an income stream (like an account-based pension).
  
  
• Discuss updated plans with your financial adviser.
  
  
• Update Insurance: Review life and health insurance policies.
  
  
• Reduce risks.
  
  

Personal

• Legal Documents: Update your will, enduring power of attorney, and advance health directive.
  
  
• Discuss Plans with Family: Make sure everyone understands your retirement goals and any support you’ll provide.
  
  

Lifestyle

• Trial Retirement Activities: Start hobbies or part-time work to see what feels right.
  
  
• Plan Travel or Big Purchases: Schedule major expenses so they fit your budget.

3-Months Before Retirement

Financial

• Confirm Super Access: Check your preservation age and conditions for release.
  
  
• Apply for Age Pension: If eligible, start the application process with Services Australia.
  
  
• Tax Planning: Speak to an adviser about tax on super withdrawals and investments.
  
  

Personal

• Health and Fitness Routine: Lock in habits for staying active and healthy.
  
  
• Emergency Fund: Keep some cash aside for unexpected costs.

Lifestyle

• Community Engagement: Join local groups or volunteer programs to stay socially active.
  
  

One Month Before Retirement

Financial

• Finalise Income Strategy: Set up your chosen retirement income stream with your financial adviser.
  
  
• Cancel Work-Related Expenses: Things like commuting costs or professional memberships.
  
  

Personal

• Celebrate Your Career: Plan a farewell event or personal reflection.
  
  
• Check Health Cover: Ensure private health insurance meets your needs.
  
  

Lifestyle

• Daily Routine Plan: Think about what a typical day will look like—balance relaxation, hobbies, and social time.
  
  

At Retirement

Financial

• Activate Income Streams: Have your financial adviser set up regular drawings from your super or pension.
  
  
• Adviser Centrelink you have retired (if applicable).
  
  
• Track Spending: Monitor your budget for the first few months and adjust as needed.
  
  

Personal

• Enjoy Your Freedom: Focus on health, relationships, and personal growth.
  
  
• Review Plans Regularly: Life changes—update your financial and lifestyle plans every year.
  
  

Lifestyle

• Stay Connected: Keep up social activities and consider volunteering or part-time work for purpose and income.
  
  

Why These Steps Matter?

• Financial security ensures you don’t run out of money.
• Personal planning helps you stay healthy and prepared for emergencies.
• Lifestyle choices make retirement a more enjoyable and meaningful experience.

For More Information

 For assistance or more information, please contact Lantern Advisory on (07) 3002 2690 or via info@lanternadvisory.com.au.