The best things to do before you retire are not just financial. They’re the decisions, conversations and structural changes that make the difference between a retirement you’ve genuinely planned for and one you stumbled into hoping for the best.
Most Australians spend more time planning a two-week holiday than they spend planning a 25-year retirement. This checklist covers the 12 most important things to do before retirement in Australia, with current 2026 figures, specific actions, and the honest context behind each one.
1. Work Out Your Actual Retirement Number
The most important thing to do before retirement is to know exactly what you need, not an approximation.
The ASFA Retirement Standard (February 2026) sets two benchmarks for single homeowners:
| Lifestyle | Annual income needed | Lump sum needed at 67 |
|---|---|---|
| Modest | $36,700 | $110,000 |
| Comfortable | $54,837 | $630,000 |
For couples: $52,800 per year modest ($120,000 lump sum) and $77,375 per year comfortable ($730,000 lump sum).
These figures assume home ownership and partial Age Pension support from 67. If you rent, add $15,000 to $20,000+ per year to the annual figure.
The ASFA comfortable standard covers private health insurance, a reliable car, annual domestic travel and regular social activities. It’s not lavish, but it’s genuine independence. The modest standard relies primarily on the Age Pension with super as a small supplement.
Work out your own annual spending target before you do anything else on this list. Everything else flows from that number.
Please note: All figures and scenarios in this article are for general illustration only. Individual outcomes depend on personal circumstances. This is general information, not personal advice.
2. Maximise Super Contributions Before You Stop Working
One of the best things to do before retirement is to fill your concessional contributions cap in your final working years. These are the years when your income is often at its peak, the tax saving is largest, and the time remaining for compound growth, while shorter, still matters.
The concessional contributions cap for 2025/26 is $30,000 per year, including your employer’s 12% SG. If your employer pays $10,800 SG on a $90,000 salary, you have $19,200 of cap space remaining for salary sacrifice or personal deductible contributions.
The catch-up contribution opportunity, urgent June 2026 deadline. If your total super balance is under $500,000 and you haven’t maximised the concessional cap in previous years, you can carry forward unused amounts from the past five years and contribute them on top of this year’s $30,000 cap. Unused amounts from the 2020/21 financial year (when the cap was $25,000) expire permanently on 30 June 2026. A 58 or 59-year-old still working has weeks to act on this. Log into myGov now and check your available carry-forward balance in the ATO portal.
Non-concessional contributions from after-tax savings can also be made up to $120,000 per year (or $360,000 in a single year using the three-year bring-forward rule if you’re under 75 with the right balance). Getting money into super before retirement moves it into a tax-advantaged environment where earnings in pension phase are completely tax-free.
Scott and Phil covered the catch-up strategy in Episode 7 of the Wealthlab Podcast: “The Superannuation Tax Strategy Most Australians Underuse.”
3. Switch to an Account-Based Pension on Day One
This is one of the most valuable and most overlooked things to do before retirement. The moment you retire, your super should move from accumulation phase to pension phase.
In accumulation phase, investment earnings are taxed at up to 15%. In pension phase, investment earnings are completely tax-free. The switch requires you to contact your fund and initiate an account-based pension. It does not happen automatically.
700,000 Australians over 65 are keeping their super in a taxed accumulation account without realising the cost. The average additional tax is approximately $650 per year compared to pension phase. Over a 20-year retirement that compounds into a meaningful sum.
Action: Contact your super fund before your last day of work and have the pension account set up to activate on day one of retirement. Don’t leave money in accumulation a single month longer than necessary.
Source: Super Members Council data, as cited in The Senior (April 2026)
4. Review Your Investment Option
One of the best things to do before you retire is to check what investment option your super is actually in, because many Australians have no idea.
If you’re in a default balanced option, check the actual asset allocation in the fund’s Product Disclosure Statement. Many funds label an option “balanced” when it holds 70% or more in growth assets. As Phil noted in Episode 22 of the Wealthlab Podcast, “A balanced fund is not a true balanced fund with most of these funds these days. They are every day of the week a growth fund that they slap the name balanced on.”
A 60-year-old’s money potentially needs to last 25 to 30 years. Moving entirely to cash or a conservative option at retirement because it feels safer significantly reduces long-term returns. As Scott covered in Episode 1 of the Wealthlab Podcast, a growth portfolio returning 6 to 7% versus a conservative one returning 3 to 4% is not a small difference across a 25-year retirement. It can mean the difference between funds lasting into your late 90s versus running out 15 years earlier.
A balanced or moderate growth option is generally appropriate for the early years of retirement. Review your allocation and make a deliberate choice rather than accepting a default.
5. Clear All Debt Before You Retire
One of the single best things to do before retirement is to enter it debt-free. High-interest debt, credit cards and personal loans carrying 12% to 22% interest, should be cleared as a priority before anything else.
The mortgage question is more nuanced. Mathematically, if your mortgage rate is 6% and your super earns 7%, the spreadsheet says keep the mortgage. But as Phil and Scott discussed in Episode 5 of the Wealthlab Podcast, “Financial planning is a funny thing. You’ve got one answer on a spreadsheet, but you’ve got the other answer that takes into account living, breathing people with emotions.” Carrying a mortgage into retirement on a fixed income creates ongoing financial stress that the numbers alone don’t capture. For most people, entering retirement mortgage-free is the right goal.
If you have a mortgage remaining at 60 and are planning to retire at 62 or 65, two extra years of salary sacrifice into super combined with accelerated mortgage repayments can sometimes achieve both goals. Model both paths before making a decision.
For a full breakdown, see our guide on should I pay off my mortgage or put money in super.
6. Check and Update Your Insurance
Reviewing insurance is one of the practical best things to do before retirement because your needs change significantly when you stop working.
Super insurance: Most accumulation accounts include default life insurance, TPD and sometimes income protection. This cover often does not automatically transfer to a pension account when you switch. Before closing your accumulation account, confirm what cover you hold, whether you still need it, and what happens to it at retirement. If you have financial dependants or a partner relying on your income, losing significant life cover without realising it is a serious risk.
Income protection: Becomes irrelevant once you stop earning a salary. Review whether you’re still paying premiums on a policy with no purpose.
Life insurance: Becomes less critical once the mortgage is paid, children are financially independent, and your partner has sufficient retirement assets. Many people carry expensive life cover well into their 60s out of habit.
Private health insurance: Becomes more important. Healthcare costs increase significantly in the 70s and 80s. Review your hospital and extras cover, particularly dental, optical, physiotherapy and hearing, which Medicare does not cover. A couple over 65 can expect to pay $4,000 to $8,000 per year in private health insurance premiums.
See our insurance and protection page for how cover changes at retirement.
7. Understand Your Age Pension Entitlement
Understanding the Age Pension is one of the best things to do before retirement precisely because most Australians underestimate what they’re entitled to.
The Age Pension starts at 67 for anyone born on or after 1 January 1957. The full Age Pension from March 2026 is approximately $29,000 per year for singles and $43,700 per year for couples combined (including all supplements).
The assets test thresholds for homeowners (March 2026):
| Full pension | Part pension cut-off | |
|---|---|---|
| Single | Below $321,500 | Up to ~$695,500 |
| Couple combined | Below $481,500 | Up to ~$1,045,500 |
The income test also applies. The pension tapers at $0.50 per dollar of income above the free area ($212 per fortnight for singles, $372 per fortnight for couples combined).
Source: Services Australia: Age Pension (Current as at May 2026)
The key insight most Australians miss: the Age Pension is not all-or-nothing. Most Australians with moderate super balances will qualify for at least a part pension from 67, and how you structure assets before that age makes a significant difference to how much you receive.
Phil and Dan walked through real case studies in Episode 10 of the Wealthlab Podcast: “How the Age Pension Really Works.” Small decisions made before retirement can be worth $5,000 to $15,000 per year in pension entitlement.
8. Apply for the Commonwealth Seniors Health Card
The Commonwealth Seniors Health Card is one of the most underused entitlements in Australia and one of the best things to do before retirement to lock in ongoing savings.
Eligible Australians who have reached Age Pension age and are not receiving the Age Pension can access:
- Cheaper prescription medications under the PBS
- Bulk-billed GP visits at many practices
- State and territory government concessions on utility bills, council rates, vehicle registration and public transport
The combined annual value of these concessions is typically $2,000 to $3,500 per year and often more. Over 20 years of retirement that compounds into a very significant figure.
Apply through Services Australia before you retire so it activates as soon as you’re eligible.
9. Get Your Estate Planning in Order
Estate planning is one of the most important things to do before retirement and the most commonly deferred. Here’s what needs to be in place before you stop working.
A current will. If you die without one (intestate), the law distributes your assets according to a formula that may not match your wishes. Update your will to reflect your current assets, relationships and intentions. Tell your executor, solicitor and family where it’s stored.
Binding beneficiary nomination. Your super does not automatically form part of your estate. Without a valid binding nomination, the fund’s trustee decides where it goes. Binding nominations expire every three years at most funds and need to be renewed. Check yours now.
Enduring power of attorney. Designates who makes financial and legal decisions on your behalf if you lose capacity. Without one, your family may need to apply to a tribunal for guardianship, which is expensive and slow.
Medical power of attorney / advance health directive. Documents your wishes for medical treatment and designates who makes healthcare decisions if you cannot.
Scott and Phil covered the estate planning side of super in Episode 12 of the Wealthlab Podcast: “Super vs Inheritance: How Death and Gifting Impact Your Pension.”
10. Build a Retirement Budget That Reflects Reality
Building a realistic retirement budget is one of the best things to do before retirement because most people’s spending changes in ways they don’t anticipate.
Some costs go down: work clothes, commuting, lunches, professional memberships. Others go up significantly: healthcare, leisure activities, hobbies, travel, and home maintenance as the property ages with you.
A useful framework is the three-phase spending wave that most retirees follow:
- Early retirement (60 to 70): Active years, higher discretionary spending on travel and experiences
- Middle retirement (70 to 80): Lower activity, reduced discretionary spending
- Late retirement (80+): Rising healthcare and potential aged care costs
As Scott discussed in Episode 19 of the Wealthlab Podcast, “The spending wave in retirement peaks in the early active years, drops in the middle years, then rises again with healthcare costs.” A flat annual spending assumption misses this pattern entirely.
Build your budget with two tiers: essential fixed costs (housing, insurance, groceries, utilities, health cover) and variable lifestyle costs (travel, dining, hobbies, gifts). Then add a healthcare buffer specifically. ASFA’s comfortable standard allocates approximately $7,000 to $9,000 per year for healthcare costs, a figure that rises significantly in the 70s and 80s.
11. Plan Your Retirement Income Structure
One of the best things to do before you retire is to understand exactly where your income will come from in retirement and in what order you’ll draw from each source.
Most Australians fund retirement from a combination of:
- Account-based pension drawdowns from super
- Age Pension (from 67)
- Personal savings or investments outside super
- Rental income if applicable
The order in which you draw from each source matters for both tax efficiency and Age Pension eligibility. Drawing from super before the pension age means accessing tax-free income (after 60 from a taxed fund), while preserving other assets that may not be assessed by Centrelink in the same way.
For a full picture of how income sources fit together, see our retirement planning page and use the free Wealthlab super calculator to model how your balance tracks across different drawdown scenarios.
12. Get Professional Retirement Advice Before You Retire, Not After
The last and arguably most important of the best things to do before retirement is to get proper advice before you make irreversible decisions, not after.
The decisions made in the five years before retirement have the highest leverage of any in the retirement journey. Contribution strategies, asset structuring, Age Pension timing, insurance transitions, drawdown sequencing, and estate planning all interact with each other. Getting any one of them wrong can cost more than years of careful saving.
Most Australians seek financial advice only after a problem has emerged. The Australians who retire most confidently are the ones who had a conversation with an adviser two to five years before they planned to stop working, when there was still time to act on the advice.
Scott and Phil covered what good financial advice actually looks like and the red flags to avoid in Episode 23 of the Wealthlab Podcast.
Frequently Asked Questions
What are the best things to do before retirement in Australia?
The most impactful actions are: know your retirement number, maximise super contributions including catch-up amounts before 30 June 2026, switch to an account-based pension on day one of retirement, clear all debt especially the mortgage, understand your Age Pension entitlement and how to structure assets around it, get estate planning in order including a current will and binding beneficiary nominations, and get professional advice while there is still time to act on it.
How far in advance should I start planning for retirement?
Ideally five to ten years before your planned retirement date. The decade between 55 and 65 is the highest-impact planning window: your income is often at its peak, the super contribution strategies available are most valuable, and there is still time to close gaps. That said, starting two to three years out is still far better than starting at 64.
What super contributions can I make before I retire?
The concessional contributions cap is $30,000 per year (including your employer’s 12% SG). If your balance is under $500,000 and you have unused cap space from previous years, catch-up contributions allow you to contribute above the standard cap. The non-concessional cap is $120,000 per year. The unused 2020/21 concessional cap space expires on 30 June 2026.
Should I pay off my mortgage before I retire?
For most Australians, yes. Carrying a mortgage into retirement on a fixed income creates financial stress and reduces the flexibility of your retirement income. The mathematical case for keeping the mortgage (if super returns exceed the mortgage rate) is real but ignores the emotional and practical costs of ongoing debt in retirement. Aim to enter retirement mortgage-free.
What government benefits can I get when I retire in Australia?
The most significant is the Age Pension from age 67, worth approximately $29,000 per year for singles and $43,700 for couples (March 2026). The Commonwealth Seniors Health Card provides PBS discounts and state concessions for those not receiving the pension. Rent assistance may apply for renters. The Services Australia Financial Information Service provides free guidance on all entitlements.
What is the best age to retire in Australia?
There is no single best age. Preservation age (60) is when super becomes accessible. Age Pension eligibility is 67. The financial case for working longer is real, particularly at moderate super balances where each additional year of contributions and avoided drawdown makes a proportional difference. The personal case for retiring earlier, particularly in good health when active retirement years are most valuable, is equally real.
Do I need a financial planner before I retire?
Getting advice before retirement is one of the most valuable financial decisions most Australians can make. The interaction between super, the Age Pension, tax, estate planning and insurance is complex, and the decisions made in the years before retirement have long-lasting consequences that are difficult to reverse. See our retirement planning page for what to expect from a retirement advice engagement.
Ready to Work Through Your Pre-Retirement Checklist?
Every item on this list has a different order of priority depending on your age, balance, employment situation and goals. Some are urgent (the June 2026 catch-up contribution deadline). Others are structural decisions that benefit from proper modelling.
Use the free Wealthlab super calculator to see where your balance stands now and what it’s projected to reach at your planned retirement date.
If you’d like to work through the full checklist with an adviser before you retire, book a free chat with the Wealthlab team. No jargon, no pressure, just clarity on where you stand and what to do before you stop working.
