So, you are planning to retire!

By Peter Kelly on 26 November 2025

Retirement isn’t just about finishing work—it’s about starting a new chapter in life. Whether you dream of travelling, spending more time with family, or simply enjoying a slower pace, planning is essential. The decisions you make in the year 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 12 months, 6 months, 3 months, and 1 month before retirement, so you can approach this exciting milestone with confidence and clarity.

1 Year Before Retirement

Financial

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).
Seek quality financial advice.
Clear Major Debts: Aim to pay off your mortgage or car loan to reduce financial stress later.
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 work, or hobbies.
Health Check: Book a full medical check-up and plan for ongoing health needs.

Lifestyle

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

6 Months Before Retirement

Financial

Create a Budget: Estimate monthly expenses and compare them to expected income from super, pension, and 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.

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.

1 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