What are some of the best retirement strategies?

two empty red adirondack chairs on a tropical sandy beach with ocean view

We love helping our clients create ideal finance strategies that help them live life on their terms and steer them towards financial freedom.

Part of our support comes from giving them the financial knowledge and money know-how to understand and make the best decisions for their unique circumstances, because no two people will ever have the exact same financial plan.

However, even if financial plans differ, they should all include one very important aspect: a retirement strategy.

Hand writing the text: Whats Your Plan for Retirement?

The importance of retirement planning


We really cannot stress just how important retirement planning is – and not just for those who are at the end of their working careers.

Planning for your retirement is something you can – and should – be thinking about while you’re still working.

Time is a very valuable component of a retirement strategy, and the earlier you begin acting, the better off you’ll be once you retire.

But even for anyone in their mid or late career journey, it’s still not too late!  Here are three of the best retirement planning strategies for you to consider.

Step Up - Superannuation retirement planning

1. Superannuation


You didn’t really think we’d share advice about retirement planning and not mention super, did you?

You must know by now that we are HUGE advocates for prioritising superannuation, especially as a retirement strategy. It’s one of the most impactful methods of building financial longevity, whether through a super fund or an SMSF.

Super might be a mandatory retirement savings account, but people don’t realise it can be a very powerful strategy for retirement.

Shift your mindset to see super as a very effective long-term investment approach that holds favourable tax benefits, particularly if you’re making additional contributions (which is highly advisable).

It is important to ensure the way you manage your super is aligned with your overall financial and retirement goals, but as far as retirement strategies go, this is a very solid one.

Small plant in pot shaped like growing graph

2. Investments


There are a number of different investments to consider as part of your retirement strategy, though it depends on your appetite for risk and the timeframe you have.

For those closer to retiring, now is not the time to be making big investments with high risk. Rather, you’ll want to invest in areas like term deposits, bonds and direct share portfolios that offer steadier returns regardless of market volatility.

Those who are still a good couple of decades away from retiring can risk being a touch bolder with their investments, as they’ll have more time to recoup any potential losses.

Woman's hand putting house model on top of coins stack.

3. Property


Property can also be a great retirement strategy. Getting into Australia’s real estate market is an effective method of wealth-building and can be a significant income stream upon retirement.

Plus, the potential for your property value to appreciate over time can offer substantial gains if you choose to sell.

Property also offers you certain tax benefits, such as negative gearing.

We often recommend investment properties as a retirement strategy, particularly for those who see themselves opting for a change of scenery once they retire.

If you’re set on retiring in a different region, consider investing in property in your chosen location.

This empowers you to build wealth and enjoy passive income while you’re still working, knowing you’ve got a comfortable property in your dream location waiting for you once you retire.

Hand of a woman holding an Australian Currency

But wait... how much do I need to retire?


We hear you. It’s all well and good to have clever retirement strategies in place, but how do you know how much you should have saved to retire?

Well, figures released by the Association of Superfunds of Australia in March 2023 saw annual income estimates of $50,004 for a single person and $70,482 for a couple being the amounts required to retire and live comfortably.

It might not seem that difficult to reach those figures; in fact, you might already be close to achieving it now!

But you don’t know what will happen in the future. And clever financial planning requires a realistic perspective, as well as an understanding that there is no crystal ball to tell us what will happen in 5, 10 or 15 years.

So while these estimated amounts might sound perfectly reasonable now, we have no idea what the future holds for economic factors like inflation and cost of living.

Health and wellbeing are also not guaranteed. It’s difficult to consider, but as we age, we will likely need to access more support through health insurance, personal insurance and aged care support.

Planning ahead


But there’s no need to worry once you realise it’s never too late to prioritise your wealth and finances and position yourself for a comfortable retirement.

You just need to plan ahead.

To plan ahead successfully, one of the first questions you should ask yourself is: where do you want to live once you retire?

Most people make this decision when they’re either just about to enter or are already well and truly into retirement living.

Unfortunately, when the decision to either move or downsize is made at this point, often what we see is a case of ‘robbing Peter to pay Paul’.

By this, we mean they’ll sell their home to purchase a new home, but the ‘downsizer’ is either the same price or sometimes more expensive than their net sale proceeds.

The result? They find themselves either in debt or having bought something they didn’t really want, but that their finances dictated they could afford.

This kind of issue is very common yet easily avoidable by planning ahead.

Making the right decisions at the right time


Regardless of the retirement strategies you choose, planning ahead is the best way to ensure you have the best chance of retiring comfortably.

Be aware of the decisions you need to make before you retire, such as where you want to live and what kind of retirement lifestyle you want to enjoy.

And don’t forget, there is always support available.

Our team members at Step Up are highly experienced in guiding people towards a successful retirement using financial plans and strategies that are carefully tailored to them.

Contact us today to discuss the best retirement strategies for you.

Need more information? Get in touch with Step Up Financial


    • 107 Moulder Street,
      Orange, NSW 2800

      PO Box 2499
      Orange, NSW 2800

    • (02) 6362 5445

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