Lifestyle
Retirement reinvented: How to workshop your next chapter
Preparing for retirement is your chance to design the life you truly want. Instead of coasting into this next chapter, take charge and create a future that excites you.
By Karen Bleakley
Retirement isn’t just about stopping work – it’s about starting a new and exciting phase of your life. Gone are the days when retirement was something that happened ‘to’ you. Instead of drifting into this next chapter, take steps to actively shape your future.
Retirement is a huge opportunity, so invest some time in planning and setting your big vision! With the right approach, you can make sure this next stage of your life is fun, fulfilling and financially secure.
Retirement in Australia: What you need to know
Did you know that in 2022-23, around 4.2 million Australians were retired? While the average retirement age across all retirees at that stage was 56.9 years, those retiring more recently are staying in the workforce longer, with an average retirement age of 64.8 in 2022. This shift highlights the changing nature of retirement – whether driven by choice or necessity – making planning ahead more crucial than ever.
There’s no set retirement age in Australia, but if you’re relying on the Age Pension, it won’t kick in until you’re 67. If you want to retire earlier, you’ll need to make sure your finances can bridge the gap.
Superannuation is that stop-gap for many Australians – Gen X can access their superannuation from age 60 (that’s anyone born after 1 July 1964). If you’re born before 1 July 1960, you can access your super from age 55. Those born between 1 July 1960 and 30 June 1964 can access their super anywhere between 56 and 60 – you can see what your preservation age is here.
Financially ready? It’s more than just super
A good superannuation balance is important, but retirement planning is about more than that. It’s about making sure your savings, investments and income streams can support the lifestyle you want in retirement.
Read this too: 5 game-changing super moves to make in the lead up to retirement
Simon Harvey, Group Managing Director of international financial planning firm bdhSterling, explains the process his team takes for new clients.
“When it comes to considering your options for retirement, we like to collect all of the hard facts and information – what the client’s assets, income and expenditure are. Then we break their expenditure down into what is desirable and what is essential,” says Simon.
“We build a lifetime cash flow model based on expenditure throughout retirement and then stress test it. We use something called a Monte Carlo simulator to model different potential scenarios so we can ensure you have enough assets to support your desired lifestyle.
“This allows us to see if we need to make any changes now to reach that financial target. For this reason, it’s a good idea to consider your retirement options earlier rather than later so we have time to implement strategies to build those funds if there is a shortfall.”
Simon encourages everyone to take the time to define what retirement means to them, including reviewing their lifestyle goals. For some, it’s about travelling the world or moving to a new location. For others, it’s about spending more time with family or pursuing passions they’ve never had the time for. There are also practical considerations – would you like to contribute to your grandchildren’s education? Do you have weddings you’d like to pay for? Would you like to help younger family members get on the property ladder?
The key is to paint a clear picture of your ideal retirement so you have clarity. The traditional notion of retirement is long gone – this is your chance to create the future you want for yourself by making smart choices.
What does a fulfilling retirement look like?
Retirement isn’t just about money – it’s about freedom! It’s your chance to travel, dive into new hobbies and enjoy more time with the people who matter most.
Victoria-based Jurgen Schonafinger, a recently retired financial planner and part-owner of Templeton Advice Group, shares his experience of retirement planning.
“A fulfilling retirement should mean not having to worry about money. It’s about being able to do the things you love, such as travel when you want and spending time with loved ones when you want,” Jurgen says.
“It’s important to see a financial planner so you structure your finances in an optimal way, before you retire and then annually. Seeing a financial planner for a review once a year gives you the peace of mind that you are maximising your cash flow and government benefits and that you are not going to run out of money.”
More on this: Why paying for financial advice can leave you with more in your pocket
But as Jurgen explains, retiring is about so much more than money. Staying connected socially and building new social contacts is very important and is a big factor for longevity, he says.
“Having a structured exercise program is great for your mental and physical health (it keeps the body strong so that your retirement can be long). One thing I’d like to add is that most of us are running out of time NOT money! We just don’t know it. So explore the possibility of retirement earlier to make the most of it!”
Retiring early means Jurgen now has the freedom to travel more with his wife, Carolyn, who runs the Holidays to Switzerland website and podcast.
Easing into retirement
Retirement doesn’t mean you have to stop working overnight. A phased approach, such as cutting down on hours or starting a side business, can ease the transition. A transition-to-retirement strategy can help with this.
Older Australians play a valuable role in the workforce, and if you want (or need) to keep working, there are plenty of opportunities to stay involved.
Career Success Coach, Wendy Alexander from Happy Career Hub helps job seekers and career changers land their dream jobs, switch careers and succeed in interviews.
“Retirement doesn't have to be a complete end – it could be about stepping into what truly fulfils you. Instead of seeing retirement as a full stop, think of it as a pivot to a new chapter in your life,” says Wendy.
“You’ve spent decades building expertise so why not offer that wisdom as a consultant? Consulting allows you to stay engaged, earn an income and set your own pace, giving you the best of both worlds: purpose and flexibility.”
More on this: 5 industries where older workers are unretiring and thriving
This gradual change gives you time to adjust – otherwise the shift from a busy work schedule to an unstructured routine can feel overwhelming.
To avoid this, think of retirement as a series of small steps, testing out what works for you – whether that’s part-time work, freelancing, volunteering or consulting.
Here are some resources for inspiration:
- Find out about volunteering opportunities in your area at Volunteer.com.au
- Be a mentor for young people with mentoring.org
- Explore business mentoring with government support services, eg. Mentoring for Growth through the Queensland Government
- Network and explore consulting opportunities on LinkedIn
Exploring your interests and purpose
Retirement is your chance to finally do the things you never had time for – whether it’s learning a new skill like orchid growing, photography or cooking, or setting off on a new adventure like doing The Big Lap in a caravan or embarking on a backpacking trip your 20-year-old self would envy.
Staying active, both physically and mentally, is just as important. Exercise, socialising and trying new things all contribute to a happy, healthy retirement. Join a walking group, try yoga or explore local activities – your council is a great resource for low-cost and free programs.
Retirement is an exciting new chapter and a solid strategy will help you make the most of it. By thinking ahead about your finances, passions and health, you can create a purpose-driven retirement that’s not only comfortable but truly fulfilling.
So, what does your ideal retirement look like? Start today by setting clear goals, making a plan and taking action to bring your vision to life.
Feature image: iStock/andresr
More resources to help you prepare for retirement: