5 Simple Steps to Feel Financially Secure Before Retiring

Retirement is one of life’s biggest transitions. It’s exciting, but it can also feel uncertain — especially if you’re about five years away and wondering if you’ll be okay.

If you’re feeling nervous, you’re not alone. Every client I’ve worked with has experienced a mix of excitement and anxiety at this stage. That’s completely normal. You’re stepping into a new chapter, one that will look different from your working years.

The good news? Awareness is empowering. Once you understand where you stand financially and what you want life to look like in retirement — right down to what you’ll have for breakfast — you can start making choices that give you confidence and peace of mind.

Here are the five simple steps I walk through with my clients to help them feel financially secure before retiring.

Step 1 – Know Your Numbers

Before you can plan effectively, you need clarity on four key numbers:

1. Income – How much income your assets can provide (e.g., superannuation pension, rental income, dividends, or Age Pension).

2. Expenses – What you expect to spend, recognising that costs often spike in early retirement (travel, hobbies) and again later (healthcare, aged care).

3. Assets – What you own, such as your home, superannuation, shares, and other investments.

4. Liabilities – Any debts, ideally cleared before retirement.

A simple rule of thumb: many people spend about two-thirds of their working income in retirement. In Australia, a comfortable lifestyle for a single person is around $50,000 per year. If your investments earn around 5% per year, you’d need a lump sum of about $1 million to generate that income for life.

Step 2 – Maximise Your Super

Superannuation is one of the most tax-effective ways to fund your retirement. After age 60, if you are retired, super converted into pension mode is tax-free — a huge advantage over assets held in your own name.

Ways to boost super in your final working years:

• Salary sacrifice or after-tax contributions (within limits)

• Use government incentives like co-contributions or downsizer contributions

• Review your investment mix to ensure it matches your retirement goals

Avoid extremes: too much risk can force you to sell at a loss in a downturn, while overly conservative investments may not grow enough to last your lifetime.

Step 3 – Eliminate or Manage Debt

Debt in retirement is a drain on your income and peace of mind.

Bad debt, like credit cards or personal loans, is costly and unpredictable. Even a mortgage — often considered “good debt” — can be a risk when your income is fixed. If you can, clear these before retiring.

If you must retire with some debt, consider strategies like using a portion of your super to pay it off, provided it leaves you with enough to meet your living needs. And in your final working years, prioritise debt repayment alongside boosting your super.

Step 4 – Plan for Lifestyle Costs

Retirement could last 20, 30, or even 40 years — so your money needs to last as long as you do.

Be conservative in your planning, allowing for rising medical costs, home maintenance, and inflation. Align your spending with what your portfolio can sustainably produce.

Also, be clear about your priorities. Many women want to travel early in retirement, enjoy hobbies, or help children and grandchildren financially. These are all worthwhile — but make sure your needs are secure before you start gifting large amounts or maintaining costly assets like a big family home you no longer need.

Step 5 – Protect What You Have

Once you’re debt-free, independent, and financially secure, you may not need insurance anymore. Until then, review your cover regularly to ensure it still meets your needs.

Estate planning is equally important. Keep your will, powers of attorney, and superannuation nominations up to date. Circumstances change, and so do family dynamics. The right plan will protect your assets and make things simpler for those you love.

Your Confidence Comes from Awareness

The single most important thing you can do is know where you stand. Knowledge brings certainty, and certainty brings peace of mind.

Whether you need a complete retirement plan or just confirmation that you’re on the right track, the sooner you start, the more options you’ll have. Sometimes, just one or two small changes can make a big difference to your confidence and your future.

If you’d like to feel secure, supported, and ready for retirement, I’d love to help. You can send me a direct message, and we can start planning your next chapter together.