Planning for retirement: practical steps to get on track 

Planning for retirement often begins when the numbers start to matter. Super, savings and income move from ‘something for later’ to things worth understanding properly. 

You don’t need to know exactly when you’ll stop working to start planning. What matters more is getting your finances into a position where you have options, regardless of timing. 

Here’s a practical way to approach it. 

Get clear on your financial position

A good place to start is simply knowing what you have, and where it sits. 

That usually means understanding: 

• How much you have in super 

• What savings or investments you hold outside super 

• Whether you’re likely to carry debt into retirement 

As a broad benchmark, the Association of Superannuation Funds of Australia estimates a single person retiring at 67 may need around $54,840 a year for a comfortable lifestyle. Couples generally need around $77,375 a year to achieve the same.¹ 

These figures aren’t targets. They’re reference points that may help put your situation into context. 

Tools like the MoneySmart retirement planner can also help you pull these pieces together and look at different scenarios, such as working longer, retiring earlier or receiving the Age Pension. 

Use your working years to strengthen your position

If you’re still earning, this is when planning can have the most impact – because you still have income coming in and time for decisions to play out. 

One of the main ways to strengthen your position is by being more deliberate about super contributions. As of FY2025–26, you can contribute up to $30,000 a year in concessional (before-tax) contributions. These contributions are generally taxed at 15% inside super. 

Choosing to redirect income this way is usually a conscious trade-off: less to spend now, more set aside for later. For many people, that’s a practical way to build retirement savings while they’re still earning, rather than trying to catch up later. 

If you haven’t used your full concessional cap in previous years, you may also be able to contribute more using carry-forward rules (subject to eligibility – including a total super balance under $500,000 and unused cap amounts from up to five prior years).² 

This stage is also a good time to check how your super is invested. You don’t need to make big changes, but it’s worth knowing whether your current mix still suits you as retirement comes into view. 

Depending on your circumstances, strengthening your position may also include: 

• Paying down remaining debt 

• Improving tax efficiency across super and non-super investments 

• Considering downsizer contributions – if you’re 55 or older and eligible, up to $300,000 from selling your home can be added to super outside the usual caps. 

• Selling your home and contributing may affect Age Pension eligibility -consider checking Services Australia or seeking advice. 

Don’t treat all your money the same 

One thing that often makes retirement planning clearer is recognising that different money tends to be used for different purposes. 

Money you hold outside super is often there for flexibility: to manage changes in work, cover unexpected costs or fund larger one-off expenses. Super, by contrast, is generally intended to support income later, once work has slowed or stopped. 

Seeing your finances this way can make planning feel more manageable. Instead of asking one pool of money to do everything, you can think about what each part is best suited for. 

The practical takeaway is that having money in more than one place can give you options in good times and bad. 

Avoid making plans that rely on one outcome

Most people don’t know exactly how retirement will unfold, and that’s normal. Work, health and plans can all change, which is why it helps not to rely on a single outcome. 

In practical terms, that comes down to a few simple choices, like  deciding how much money to keep easily accessible, choosing a fixed or flexible retirement date, managing how much income to draw each year and determining the level of investment risk you’re comfortable with. You don’t need to get this right upfront; the aim is simply to avoid plans that only make sense under one set of assumptions. 

If circumstances change, this approach makes it easier for your finances to adjust without forcing rushed decisions. If you’re unsure whether your current setup depends too heavily on one outcome, your super fund or an adviser can help you. 

Putting the pieces in place 

Retirement planning isn’t about mastering rules or locking in decisions early. 

It’s about understanding what you have, using your working years to strengthen the right areas and being clear about what’s flexible and what’s not. 

That groundwork makes future decisions simpler – and less rushed – when the time comes. 

This information is current as at 1 April 2026 and may be subject to change. You should not rely on this article to determine your personal tax obligations or other entitlements. 

Bendigo Superannuation Pty Ltd (ABN 23 644 620 128 AFSL 534006) (Bendigo Super) is the trustee and issuer of Bendigo SmartStart Super and Bendigo SmartStart Pension (Products).
Before making an investment decision in relation to the Super Products, read the relevant Product Disclosure Statement, available from this website (www.betashares.com.au/super/documents) or by calling 1800 033 426, and consider whether the product is right for you. You can find the Bendigo SmartStart Super Target Market Determination here and the Bendigo SmartStart Pension Target Market Determination here. This information is general in nature and doesn’t take into account any person’s financial objectives, situation or needs. You should consider its appropriateness taking into account such factors and seek professional financial advice. Past performance is not indicative of future performance.

Sources:

1. ASFA Retirement Standard December Quarter 2025, assuming retiree owns their own home 

2. Source: ATO (Concessional contributions cap)