How to Start Planning for Retirement After 50

A recent study by the Financial Planning Association of Australia found that Australians who actively sought out financial advice and planning felt more financially secure (85% vs 62%) moving into retirement (2022). This financial security directly translates to higher returns in retirement, less risk, and overall wellbeing. Yet, the number of high net worth (HNW) Australians seeking financial advice is dropping (IFA, 2023).

Start by assessing your retirement income needs

Predicting your retirement date (or age) can feel as elusive as predicting the US’s next tariff announcement, especially when it’s seemingly a decade or more away; however, there are solid ways to take a retirement prediction from conceptual to concrete.

Estimating how much you will need in retirement starts by having a detailed catalogue of your current spending habits and some early retirement goals on the table, such as travel plans (duration, frequency, and location all make a sizeable difference), future investments, living abroad, philanthropy. But of course, no matter how much you plan, the bigger questions of longevity and health are far harder to predict, alongside the even less predictable world of interest rates and inflation.

While you begin to balance between the foreseeable and the non, knowing your ‘enough number’ will give you a realistic foundation to calculate against.

Is it really too early to downsize?

When you have a fair assumption of how you want to live during those post-work years, you can make some early lifestyle changes that set you up for a more fruitful retirement.

If you are planning more regular travel during retirement, for example—and staying abroad for longer periods of time thanks to your newfound freedom—you could consider cutting your current travel expenses now.

And the same goes for downsizing.

Many Australians wait for retirement to downsize; however, there is a lot to gain from downsizing when your current housing needs change. “… the ABS survey of Income and Housing’s Housing and Occupancy Costs suggests that around 7.4 million households (around 76.8% of all households in private dwellings) live in housing that has more bedrooms than they need.” (AHURI, 2022).

This extra, unneeded space could be funnelled into your retirement fund. In the five years between July 2018 and April 2023, 58,000 people made downsizer contributions to their super to the value of $14.5 billion according to the ATO.

Never underestimate the value of maximising super

There are significant gains to be made when you execute an early plan for your superannuation pool. Voluntary super contributions, 10 years out from retirement, can have a significant effect on your retirement fund. Here’s how it works:

• Super is taxed at 15% when you’re in the accumulation phase: still working, 10 years out from retirement.
• If you’re in an earning bracket of $250,000 or over, you will be hit with an extra 15% Division 293 tax—which is still considerably lower than marginal tax rates (up to 47% for HNW Australians).
• If your super is currently sitting below $500,000, you can also take advantage of the carry-forward concessional contributions rule.
• This rule allows you use unused caps from the past five years, which is perfect for high-income earners who want to increase super contributions without breaching limits.
• The final decade before retirement is also the ideal time to move your other assets into super (i.e. investment properties, shares, dividends).
• Moving assets early means that you can meet contribution caps while avoiding excess transfer limits at retirement.

By getting ahead of your retirement plan, you can maximise how much of your wealth ends up inside that low-tax environment before you hit retirement age and the transfer balance cap, which is currently set at $2 million (ATO, 2025).

Take the time to review your estate and legacy planning

Planning for the transfer of your largest assets requires serious consideration and ongoing review. Starting early means that you can:

•  Take time to design a legacy plan that aligns with your goals
• Minimise the risks (such as tax and legal ramifications) for your beneficiaries
• Benefit from ongoing and longer-term optimisation models
• Gain the peace of mind and overall wellbeing that comes from having your ‘ducks in a row’

Planning for retirement absolutely sets you up for success in the future; however, it also contributes to your financial confidence and wellbeing today. Schedule a conversation with a Capital Partners adviser to keep your retirement wealth working for you.

References:

Australian Bureau of Statistics, 2024. Retirement and Retirement Intentions, Australia: 2022–23 financial year. https://www.abs.gov.au/statistics/labour/employment-and-unemployment/retirement-and-retirement-intentions-australia/latest-release.

Financial Advice Association of Australia (FAAA), 2022. Australians who engage a financial planner have a better quality of life: FPA launches inaugural Value of Advice Index. https://faaa.au/australians-who-engage-a-financial-planner-have-a-better-quality-of-life-fpa-launches-inaugural-value-of-advice-index/

Investment & Financial Advisers Association (IFA), 2023. Number of high-net-worth investors seeking advice declining. https://www.ifa.com.au/news/33299-number-of-high-net-worth-investors-seeking-advice-declining

Australian Taxation Office, 2025. Transfer balance cap. https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/transfer-balance-cap

Australian Housing and Urban Research Institute, 2024. Are there 1 million empty homes and 1.3 million unused bedrooms? https://www.ahuri.edu.au/analysis/brief/are-there-1-million-empty-homes-and-13-million-unused-bedrooms

Vanguard Investments Australia, 2023. Unlocking home equity to fund retirement. https://www.vanguard.com.au/personal/learn/smart-investing/retirement/unlocking-home-equity-to-fund-retirement