Money
Transition to retirement: Your age-by-age guide to what comes next
Retirement isn’t what it used to be, but that’s a good thing. From here on in you’ve got choices to consider and options to plan at every stage.
By Rosalyn Page
Navigating the transition into retirement takes careful planning to ensure you’re well prepared – financially and physically – to make this your best chapter yet.
From superannuation and work options to government support and health and lifestyle considerations, it’s important to know your options and be prepared at key milestones. Here’s a gentle guide to what’s up at each age and the steps you need to stay on track.
50 and fabulous: Plan ahead, without pressing pause
Grind less and still grow
Entering your 50s can spark a shift in how you think about the future. At this stage, you may be considering transitioning into part-time work, stepping down from a high responsibility, high-stress job or seeking a complete change in direction.
“Some may feel like they need to reinvent themselves to avoid ageism whilst others may seek out alternative options more aligned with their changing values,” says Leah Lambart, career coach with Relaunch Me.
Paying off the mortgage, salary sacrificing or making additional personal superannuation contributions can all help build the nest egg for later. It can also be a time to review your investment mix and level of risk and return for your retirement fund.
“Many people want to maximise their income because of mortgages, education for dependents or caring for elderly parents whilst balancing flexibility that allows for caring duties,” says Leah.
Stay sharp, stay relevant
Routine health checks are important, monitoring stress levels and aiming for at least 30 minutes of moderate-intensity exercise most days.
Fears about ageism and being surpassed by technology can strike at this age. To counter this, Leah encourages people to find opportunities to gain skills that will help stay relevant.
“This is an ideal time to invest in upskilling, particularly in relation to new technologies like AI. To stay current, consider leadership or mentoring roles, or pivot into a more fulfilling area of work,” says Leah.
55 and figuring it out: Take stock and test the waters
Transition slowly, plan wisely
You can start accessing your super from your preservation age, which ranges from 55 to 60 depending on your birth year, usually through a transition to retirement (TTR) income stream. It supplements incomes while you’re still working.
In some cases, people turn to financial counselling to help them think about their priorities and gain clarity before they make any major decisions about their finances.
“It’s a safe, structured space guided by a financially qualified professional, without pressure to act or buy something,” says Rebecca Maher, CEO and founder, of myMoneyCircle.
It can provide ongoing support for managing the day-to-day considerations.
“Things like adjusting to semi-retirement, tracking spending as your income changes, or navigating conversations with family about money,” says Maher.
Look ahead, live intentionally
On the health front, it’s important to keep up with preventative screenings and consider incorporating strength training to maintain muscle mass. It can also be a time when lifestyle reassessment kicks in, according to Amanda Adams, retirement living specialist.
It can prompt people to start considering where they want to live long term and whether they’re close to the people and things that matter most to them.
Thinking ahead helps people make intentional choices about what their future could look like, says Amanda. “This is often the age when people begin exploring retirement communities or at the very least researching future options. It is a proactive choice, not a reactive one.”
60 and gearing up: Reshape the balance
Less tax, greater freedom
There’s more flexibility around super withdrawals and tax benefits. Once you’re 60 and have stopped working, any super withdrawals (including income streams) are generally tax-free. Even if you’re still working, TTR rules become more tax-friendly from age 60.
Some people may want to scale back work commitments or embrace a ‘portfolio career’ at this age, combining different roles. It’s a way to continue earning some income while doing other work that’s aligned to their interests or values, says Leah.
“It might also include some volunteering which allows people to do purposeful work and still be engaged,” she says.
More on this: The secret to a happier, healthier life after 50? Go volunteer!
Nourish well, move more
Health-wise, it’s recommended to aim for a whole food diet rich in nutrients, particularly Vitamins B2, B6 and D, calcium and iron as well as adequate protein and fibre. Being well hydrated helps with brain functioning, and to prevent urinary tract infections and kidney stones.
Staying well gives you a chance to do the things you’ve been putting off for these later years – like travelling overseas or caravanning around Australia.
“People are exploring what they’re eligible for, like super, pensions and concessions, but they’re also leaning into a bit more freedom,” says Amanda.
On the home front, it might be looking at retirement communities or other ways to have a secure, low-maintenance home base.
“People want lifestyle with flexibility and something easy to lock up and leave,” she says.
65 and beyond: Embrace freedom
The benefits begin (if you want them)
At 65 and beyond, retirement becomes more real – and so do age-based entitlements and support options. It's the age you can access your super without needing to retire or meet a work test.
At 67, you may be eligible for the Age Pension, depending on your income and assets, and for things like the Commonwealth Seniors Health Card that provides cheaper medicines and bulk-billed doctor visits.
Find out more: All the reasons why being 60 and older is a good thing
Yet, instead of finishing work abruptly at this age, more Australians are finding retirement is a gradual process. It could be driven by financial necessity or the desire to stay involved in things, says Leah.
“For many, this time might be about drawing enough income to meet some external commitments, but more importantly it’s feeling useful and engaged socially,” she says.
Stay active, stay connected
This is the stage to fully embrace what you’ve worked hard to achieve, but it can require some getting used to.
“You start to face the emotional shift of spending the money you’ve worked so hard to save. It can feel uncomfortable at first,” says Amanda.
To make the most of it, it’s not a time to be too sedentary. Aim to stay as active as possible in this stage, which benefits physical and mental wellbeing. This can also reduce the risk of some diseases and helps in keeping a healthy weight.
If you have a disability or chronic condition, you’ll need to adapt, but there are still ways to keep moving. Working with an exercise physiologist that specialises in older bodies can help tailor a program to maintain movement and protect against injury.
In this phase, it’s important to prioritise connections with family and friends and maintain a sense of purpose, which can come from volunteering, hobbies, travel or other interests.
“Work often provides social structure, and when that changes, people realise they need to be more intentional about staying connected,” Amanda says.
The journey to retirement starts now
No matter your age or stage, the path to retirement isn’t a straight line, it’s a winding road filled with choices, changes and, hopefully, a bit of excitement. The key is to stay curious, keep checking in with your goals, and make adjustments as life evolves.
Whether you’re still in full work mode, easing into something new, or already embracing the perks of post-work life, there’s power in planning. The more informed and intentional you are now, the more freedom you’ll have later to live on your terms – whatever that looks like for you.
This article contains general information only. It is not financial advice and is not intended to influence readers’ decisions about any financial products or investments. Readers’ personal circumstances have not been taken into account and they should always seek their own professional financial and taxation advice that takes into account their financial circumstances, objectives and needs.
Feature image: iStock/svetikd
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