Retirement planning FAQs for Aussies 45–60

When you’re younger, planning for retirement is not high on the priority list; however, as most of us enter our 40s, it becomes more prominent if we haven’t already started. Planning for a well-funded retirement is not just about saving enough; it’s about understanding your options and making decisions that give you financial freedom. A good financial advisor helps you think ahead, anticipate risks, and tailor a plan to your lifestyle goals. Often, when we meet people at this stage, couples and individuals don’t know what questions to ask or what to consider. In this article, we aim to help solve this part of the retirement puzzle.

Ideally, retirement planning starts well before you turn 50; however, the earlier you start, the better the outcome. Many people begin in their 40s as they start thinking seriously about retirement timing, lifestyle and income. Planning sooner allows compounding to work in your favour and gives you flexibility in your choices.

Ask your advisor:

• Are we on track to reach our goals?
• How does delaying planning affect our retirement income?

Superannuation is Australia’s main tax-effective way to build retirement savings, and boosting contributions can make a big difference. But other savings, such as investment accounts or property, can also play a role, especially if you want more flexibility or earlier access.

Ask your advisor:

• Can we make additional contributions now?
• What are the tax benefits and limits of super contributions?

Super can’t be held in joint names, so couples need to coordinate to ensure both partners are positioned for retirement. Planning together can help balance uneven super balances, optimise tax outcomes and support estate planning.

Important points for couples:

• Do we both have sufficient super?
• Should we consider splitting contributions?
• How do different retirement ages affect our plan?

Retirement income may come from a mix of sources: superannuation, investments, and, if eligible, the Age Pension. Understanding how these fit together can help you decide when to retire and how to structure your assets.

Questions to explore:

• When can we access our super and Age Pension?
• How can we structure income to maximise benefits?

Good retirement planning accounts for risks such as longevity, rising healthcare costs, market volatility, and changing government rules. Your advisor can stress-test your plan under different scenarios to help you feel confident.

Key risk questions:

• Are we prepared for unexpected healthcare costs?
• How will market changes affect our income?

Many people overlook estate planning or aged care when thinking about retirement, but both are critical. A will, powers of attorney and clear beneficiary nominations can protect your legacy. Planning for aged care, both financially and logistically, is also important as you age.

Discuss with your advisor:

• How will our estate be distributed?
• What aged care costs might we face?

Retirement planning isn’t a “set and forget” task. Life changes, such as career shifts, health events, market conditions or family dynamics, mean your plan needs regular check-ins. Most advisors recommend at least an annual review, and more often during major life events.

Retirement planning isn’t just about numbers; it’s about choices. With the right questions and a tailored strategy, you can build confidence in your retirement years.

If you’re in your mid-40s to 60s and want to understand where you’re at and what to prioritise, having a conversation with a financial advisor is a savvy decision.

AFPG has the expertise to guide you in wealth accumulation and protection. We’ve helped hundreds of Australians, singles, couples and families make informed decisions that enable them to live a lifestyle of their choosing.

Contact us today for experienced, compassionate, and professional financial advice.