THE RETIREMENT PLANNING ROADMAP: What Every Australian 50+ Needs to Know (But Most Don't)
I've had numerous retirement planning conversations over the years. And I've noticed something troubling: most people don't know what they don't know.
They think retirement planning is about picking the right super fund or maybe salary sacrificing a bit extra. But that's like saying building a house is about choosing the right paint colour.
Let me walk you through what comprehensive retirement planning actually involves—and where most Australians are leaving money on the table.
PART 1: THE FOUNDATION—KNOWING YOUR NUMBER
Most people guess their retirement needs. "Oh, maybe $50,000 a year?" they say, pulling a number from thin air.
According to ASFA, a comfortable retirement requires $72,148 annually for couples or $51,278 for singles (as of 2025). But that's generic. YOUR number depends on:
- Whether you'll have a mortgage - Your health and expected longevity - Your lifestyle goals (travel, hobbies, helping kids) - Age Pension eligibility - Inflation impact over 20-30 years
I recently worked with a couple who thought they needed $1 million. After mapping their actual retirement vision—including annual overseas trips, a boat, and helping three adult children with house deposits—their real number was $1.8 million. They had 8 years to close a $700,000 gap they didn't know existed.
Action step: Calculate your actual annual retirement spending. Not what you think you need—what you'll actually spend. Add 20% for the things you forgot.
PART 2: THE SUPERANNUATION MAZE
Here's where it gets interesting. Most Australians treat super like a set-and-forget savings account. Meanwhile, they're paying unnecessary fees, holding underperforming insurance, and missing tax breaks worth tens of thousands.
Consider these opportunities most people miss:
Carry-Forward Contributions: Since 2018, if your super balance is under $500,000, you can access unused concessional contribution caps from previous years. I had a 58-year-old client with $47,000 in unused caps. We used a bonus payment to maximise this, saving him $14,100 in tax while boosting his retirement savings.
Spouse Contribution Splitting: If you're married and one partner earns significantly more, contribution splitting can help balance super accounts, reduce tax, and provide asset protection. Yet fewer than 5% of eligible couples use it.
Downsizer Contributions: Over 55 and selling your home? You can contribute up to $300,000 per person from the proceeds into super—outside the normal caps. For a couple, that's $600,000 that can grow tax-free. But I see people miss this window constantly because they don't plan the timing correctly.
Transition to Retirement (TTR): If you're 60+, a TTR strategy can boost your super while maintaining your lifestyle. You draw a pension from super (tax-free after 60) while making additional contributions with your salary. The result? More money in super, less tax paid.
Action step: When did you last audit your super? Check fees, insurance costs, investment performance, and available contribution strategies.
PART 3: THE TAX OPTIMISATION GAME
Here's a truth that surprises people: retirement planning is as much about tax strategy as investment returns.
Let me show you what I mean:
Sarah and Michael (both 62) had $850,000 in super combined. They planned to retire at 65. Their approach: "Just let it grow and we'll figure it out then."
We restructured their final three working years: - Maximised concessional contributions (reducing income tax) - Implemented a TTR strategy (tax-free pension income) - Timed their asset sales to minimise CGT - Structured their super withdrawal strategy to optimise Age Pension eligibility
The result? They retired 18 months earlier than planned with $127,000 more in super. Not from better investment returns—from better tax planning.
The Australian tax system has significant retirement concessions, but they're complex and time-sensitive. After 60, super withdrawals are tax-free. Before that, there's a preservation age. After 67, work test rules change. The Age Pension has asset and income tests with specific thresholds.
Miss these windows and you can't get them back.
Action step: Map your final 5-10 working years. That's your highest-value tax planning window.
PART 4: THE THINGS THAT DERAIL RETIREMENT PLANS
I've seen well-structured retirement plans crumble because of:
Health shocks: Without adequate insurance, a critical illness can drain super. Yet many people over 55 have cancelled insurance "to save fees" without understanding their risk exposure.
Helping adult children: The "Bank of Mum and Dad" is now the ninth-largest home lender in Australia. Parents lend or gift money for house deposits without calculating the retirement impact. I've seen it delay retirement by 5+ years.
Relationship breakdown: Divorce after 50 is increasing. Super is a divisible asset in family law. Without proper structure, you can lose half your retirement savings.
Market timing mistakes: Retiring into a market downturn without a buffer strategy can permanently damage retirement outcomes. Sequence of returns risk is real.
Action step: Stress test your plan. What if markets drop 30%? What if you need aged care? What if one partner dies early?
THE BOTTOM LINE
Retirement planning isn't a product—it's a strategy.
It's not something you do once at 64. It's something you optimize over your final 10-15 working years when you have the most control and opportunity.
The difference between those who retire comfortably and those who struggle isn't usually income—it's planning.
I've seen high-income earners retire with insufficient funds because they never had a strategy. And I've seen modest-income earners retire comfortably because they maximized every available opportunity.
The question isn't whether you can afford to plan. It's whether you can afford not to.
If you're 50+ and you haven't mapped your retirement journey with the same detail you'd plan a major business project, you're gambling with your future.
What's your next step?
This article provides general information only and does not consider your specific circumstances. Before making investment decisions, consider speaking with a licensed financial adviser.