If you’re in your 50s, now might be the time to start thinking seriously about retirement. Have you been actively managing your superannuation fund and your savings to give yourself the freedom to retire comfortably? It might feel like retirement is still a long way off, but in reality, it could be closer than you think.
One of the most common questions people ask is: “How much will I need to retire?” The answer isn’t one size fits all as it depends on your lifestyle, goals, and spending habits.
The 25x Rule
A simple method to estimate your retirement needs is the 25x rule: calculate your expected annual expenses in retirement and multiply by 25. For example, if you need $100,000 per year after tax, you would aim for around $2.5 million in capital. While that number might feel daunting, starting early gives you time to build your savings strategically.
Is semi-retirement in the picture?
There are also opportunities for early or phased retirement, where you reduce your working hours but remain partially employed. This can give you flexibility and help you adjust to a new lifestyle gradually. Technically, there are a few ground rules to keep in mind. In Australia, you can access your super when you reach your preservation age (65) and officially retire, meaning you have no intention of returning to work. If you return to part-time work, the ATO may require proof that your initial retirement was genuine.
One alternative is the Transition to Retirement Income Stream (TRIS), which allows you to reduce your working hours while using your super to top up your regular income. This is only available once you reach the minimum age and must be taken as regular payments.
Where to start
Begin with Lifestyle-First Planning that focuses on the retirement lifestyle you want and then work backwards to determine how much you need to save. Your health and expected working years are also critical factors to consider.
Planning for retirement is also about financial confidence. It may seem far off, but time flies, and it’s never too early to aim for an ideal destination. The best way to secure your future is to work with a trusted financial professional, create a written plan, and incorporate risk protection through further insurance and else. At Locumsgroup, our team is always available to answer your questions. We offer free consultations so you can see how we work and decide if we’re the right fit to support your journey.
What if I’m alone?
Another important aspect is solo retirement planning. Singles face unique challenges, so it’s essential to maximise super contributions, maintain liquid reserves, and plan for long-term care. Retirement may feel far off, but planning ahead is key to financial confidence and peace of mind.
In summary, understanding your superannuation, savings, and lifestyle goals ensures you can retire on your terms. Whether you’re considering full, early, or phased retirement, having a clear plan makes all the difference. Locumsgroup is here to help, providing guidance and support every step of the way.
