The final five years before retirement are your financial springboard — the most powerful period to strengthen your future lifestyle. This is when your income is often at its peak, major costs are winding down, and there’s time to optimise your financial position before the paycheques stop.
Balancing Preparation and Opportunity
If possible, enter retirement debt-free. Paying off the mortgage and finalising education or family costs frees up cash flow and reduces financial pressure. With those commitments behind you, every extra dollar can start working for your future self.
Supercharging Superannuation
Use these years to maximise contributions while tax incentives still apply. Salary sacrifice, concessional, and non-concessional contributions can significantly lift your balance. The earlier this acceleration starts, the more compounding works in your favour.
Test-Run Retirement
Start living on your expected retirement income now. It’s the best way to see whether your budget feels realistic and what changes might be needed. If you can live comfortably on that amount while still working, you’ll retire with confidence.
Review and Simplify
Consolidate super accounts, check insurance cover, and make sure your investments match your comfort level. Update wills and beneficiaries. Small administrative steps now prevent stress later.
Plan Beyond the Finances
This phase isn’t just about money. Start thinking about what life will look like after work — hobbies, relationships, routines, and goals. Discuss it with your partner early. The clearer the vision, the smoother the transition.
Final Thought:
The five-year countdown is your chance to move from working life to living life — with clarity, purpose, and financial freedom.