The last few working years are where the biggest planning wins live

Retirement can feel like something that is still years away — until suddenly, it isn't.

For many Australians, the final five to ten years of work are when retirement planning becomes particularly important. Your super balance may be at its highest, your income may be near its peak, and decisions about debt, investments, super contributions and when to stop working can have a meaningful impact on the lifestyle you can afford later.

The good news? You don't need to have everything figured out at once.

The final years of your working life are an opportunity to bring your finances into focus, identify potential gaps and make informed decisions about what you want retirement to look like.

Here is a practical checklist to help you get started.

1. Work out what retirement actually needs to fund

Before focusing on your super balance, start with the lifestyle you want.

Do you want to travel regularly? Spend more time with family? Renovate your home? Downsize? Take up new hobbies? Continue working part-time? Or simply have the freedom to decide how you spend your time?

There is no universal "right" retirement income. The amount you need depends on your lifestyle, housing situation, health, travel plans and other financial commitments.

A useful starting point is to look at your current household spending and separate it into:

• Essential expenses, such as housing, utilities, food and insurance
• Lifestyle expenses, such as travel, dining and entertainment
• One-off or irregular expenses, such as replacing a car or major home improvements

You can then consider how those expenses may change once you stop working.

Some costs may fall — such as commuting and work-related expenses — while others may increase. Travel, hobbies and healthcare are common examples.

The objective isn't to predict every dollar you will spend for the next 30 years. It's to establish a realistic target for the lifestyle you want.

2. Find out where you stand today

Once you know what you're aiming for, take stock of your current position.

Look at:

• Your superannuation balances
• Other investments and savings
• Your home and other property
• Any investment or business interests
• Your mortgage and other debts
• Insurance arrangements
• Your expected retirement income

It is also worth checking whether you have more than one super account.

Consolidating multiple accounts may reduce duplicated fees and make your retirement savings easier to manage, although consolidation isn't automatically appropriate for everyone. Before combining accounts, check investment options, fees, insurance and any other benefits attached to each fund.

This is also a good time to check your nominated beneficiaries and make sure your super fund records reflect your current wishes.

3. Review your super strategy

For most Australians, superannuation will be one of the most important sources of retirement income.

The final years before retirement can therefore be a valuable time to review how your super is invested and whether your contribution strategy remains appropriate.

Your employer's compulsory super guarantee contributions continue to play an important role. From 1 July 2026, the super guarantee remains 12%, while "Payday Super" means employers are required to pay super at the same time as salary and wages, subject to the applicable rules.

You may also be able to make additional contributions, including salary sacrifice or personal contributions, depending on your circumstances and the applicable contribution caps.

However, more super isn't necessarily the only objective.

As retirement approaches, it is worth asking:

Is my super invested in a way that still reflects my timeframe, risk tolerance and retirement objectives?

Moving into retirement doesn't automatically mean moving everything into conservative investments. At the same time, continuing to take a level of investment risk that no longer suits your circumstances may not be appropriate either.

Your investment strategy should reflect your individual circumstances rather than simply your age.

4. Consider whether a transition to retirement strategy could help

Retirement doesn't have to be an all-or-nothing event.

For eligible Australians, a transition-to-retirement (TTR) strategy may provide an opportunity to access a limited income stream from super while continuing to work.

Depending on your circumstances, TTR can potentially be used to:

• Reduce working hours while supplementing income with super
• Maintain your income while working fewer days
• Salary sacrifice more of your employment income into super while using a super income stream to supplement your cash flow
• Create a more gradual transition from full-time employment to retirement

There are important eligibility, tax and superannuation rules to consider, and a TTR strategy can affect areas such as government benefits, insurance and the amount you ultimately have available in retirement.

The key is not simply asking, "Can I access my super?"

Instead, ask:

"Could using super strategically in the final years of work improve my overall retirement position?"

5. Get serious about debt

Entering retirement with debt isn't necessarily a problem, but it should be a deliberate decision.

Your mortgage may have been manageable while you were receiving a regular salary. Once employment income stops, however, repayments can place greater pressure on your retirement cash flow.

Consider:

• How much will remain on the mortgage when you retire?
• What interest rate are you paying?
• Could the loan be repaid before retirement?
• Would making additional repayments be beneficial?
• Are there other debts that should be prioritised?
• Would downsizing or using other assets form part of your retirement strategy?

There isn't one answer for everyone.

For some people, aggressively paying down the mortgage is the priority. For others, maintaining investments and liquidity may be more important.

The important thing is to make the decision as part of your broader retirement strategy rather than simply reacting to the balance on the statement.

6. Understand your potential Age Pension position

Super isn't necessarily the only source of retirement income.

The Australian Government Age Pension can form part of a retirement strategy for eligible Australians, but eligibility isn't automatic. Age Pension age is currently 67, and eligibility depends on meeting age and residence requirements as well as income and assets tests.

This means your broader financial position matters.

For example, Services Australia considers various assets when assessing eligibility, while some assets — including a person's principal home in many circumstances — can receive different treatment under the assets test.

Understanding your potential Age Pension entitlement before retirement can help you estimate how much income your own assets and super may need to provide.

It's worth modelling this rather than assuming you'll either receive the full Age Pension or nothing at all.

7. Think about tax — before you retire

Tax planning can become particularly important as you approach retirement.

The tax treatment of super contributions, investment income and withdrawals can vary depending on your age, account structure, type of contribution and how benefits are accessed.

Retirement-phase superannuation also operates within the transfer balance cap framework. The general transfer balance cap increased to $2 million from 1 July 2025, although an individual's personal transfer balance cap can differ depending on their circumstances and previous pension history.

This is one reason retirement planning shouldn't be reduced to a simple calculation of "how much super do I have?"

The structure of your retirement savings can matter just as much as the balance.

Professional advice can help you understand how different strategies may affect your tax position and retirement income.

8. Review your investments outside super

Super may be your primary retirement asset, but it shouldn't necessarily be the only one you consider.

Review your:

• Savings and cash reserves
• Shares and managed investments
• Investment property
• Business interests
• Term deposits and other investments

Consider how each asset might contribute to your retirement income and whether your overall portfolio is appropriately diversified.

Having accessible assets outside super can also provide flexibility for large expenses or unexpected costs.

9. Don't forget insurance and estate planning

Retirement planning isn't only about accumulating wealth.

It's also about protecting what you've built.

Review whether your insurance remains appropriate as you approach retirement. Life and income protection needs can change significantly as debts reduce and employment income eventually stops.

Estate planning is equally important.

Check that your:

• Will is current
• Powers of attorney are in place where appropriate
• Superannuation beneficiaries reflect your wishes
• Ownership structures are understood
• Family knows where important documents are located

Superannuation does not automatically form part of your estate in the same way as many personally owned assets, so beneficiary nominations deserve particular attention.

10. Stress-test your retirement plan

Finally, don't only build a plan based on everything going perfectly.

Ask yourself:

• What happens if I retire earlier than expected?
• What if investment markets fall shortly after I retire?
• What if I live longer than expected?
• What if I need additional healthcare or aged care later in life?
• What if I want to travel more in the first ten years of retirement?
• What happens if my partner's retirement plans are different from mine?

A good retirement strategy should have enough flexibility to cope with changes.

You don't need to predict the future. You need a plan that can adapt to it.

Your final working years are a planning opportunity

The last few years before retirement can be some of the most valuable years for financial planning.

You have more information than you did earlier in your working life. Your super balance is clearer. Your income and expenses are easier to understand. You may have significant equity in your home or other investments. And, importantly, retirement is close enough that the decisions you make today can have a meaningful impact on your lifestyle tomorrow.

The goal isn't simply to retire with the biggest possible super balance.

It's to build a retirement strategy that brings together your super, investments, debt, tax position, government benefits and personal goals — and turns those assets into an income you can rely on.

If retirement is within the next five to ten years, now is a good time to stop asking "Am I ready to retire?" and start asking "What do I need to do to make the retirement I want achievable?"

A personalised retirement plan can help turn those questions into practical next steps.