The final 12-months before retirement present a very fertile time to ensure you are on track for a comfortable and productive life after full-time work. 

Here’s a seven-point countdown to help you plan. But first, one small reminder. This checklist is not deliberately prescriptive. Every retirement is a very individual journey, with many a twist and turn, so feel free to personalise and re-order any of these items to better suit your own situation and needs.

And referencing article six in the Road to Retirement series – it’s smart to start with what matters most for your health and wellbeing and to make sure your plans are shared.

1. Dream your dreams, then check in with others

A fun retirement is one full of stimulation, people, fun activities and a strong sense of contribution. How do you achieve this? By thinking clearly about how you wish to live, with whom, where and what sort of things will fill your days and weeks.

If you’re single, then you are the CEO of your future life. But if you are partnered, sharing your plans with your other half is vital. And if your dreams and theirs are not entirely aligned, working out some compromises before you both retire makes a lot of sense.

Trying new activities in pre-retirement helps prepare you for the gap of not working in retirement. Credit: Dreamstime

2. Start your emotional transition

You don’t have to wait to get your new life underway. Even if you’re still working full-time you can try out some of the things you hope to do a lot more of in retirement. Now is the time to create a set of new routines, try new activities, join a club or take up a hobby. Even volunteer. Women seem to more naturally gravitate towards these type of activities, some men may need a little encouragement. Whatever your outlook, it’s a good tactic because it means you’ll have less of a gap to fill when you leave the workplace.

3. Cost your dreams

Don’t start with what you have. It’s much more fun to start with what you think you will need to achieve the type of retirement you planned above. Are there any big ticket items such as travel, renovations, a new car or gifts to adult kids? Make sure you know how much this is likely to entail and which stage of retirement you’ll need these funds. How much does it currently cost to cover your bills; the essential household expenditure? If you don’t know, then now is the time to work this out – take bank statements and check all outgoings for the last calendar month. Divide these expenses into discretionary or essential. Think whether your discretionary spending can be trimmed or if the essentials need to be renegotiated. Could you be more thoughtful in the way you spend?

4. Check your super balance and ways to boost it

You could predict your retirement income right now using your current balance. But let’s be a little more imaginative. Use this calculator first to explore how any extra contributions can help your balance to grow.  

5. Seek advice

Based upon the theory that most of us don’t know what we don’t know, talking with an adviser from your super fund is often the best way to fully understand your future finances. As well as knowing the rules regarding your likely Age Pension eligibility, they can assist you to model your lifetime income, related to your expected lifespan. Advisers can also help you understand if your current spending is sustainable. Doing these sums in advance also helps you confirm your actual date of departure from the workplace.

6. Understand what this means for five years, ten years, or 15 years’ time?

You can now create an informal retirement timeline that includes all the items in your original dream list – what you hope to achieve and by when. You can also practise living within your likely retirement budget well before the day you retire. This allows you to fine tune your expenditure if you are well under – or over the budgeted amount.

Such forward planning can also inform your options at Preservation Age, if you’ve yet to reach it.

Celebrate and embrace retirement, learn from each other and enjoy it. Credit: Dreamstime

7. And finally, as the big day approaches…

It’s time to buy the cake, light the candles, pop the champagne and party like it’s the 70s. And then, you can plan to sleep in as long as you like …

Sometimes planning for your long term future can seem daunting – that’s when stories about people like yourself are important. Learning how others tackle the challenges of leaving work and getting their future income in shape can be inspiring – and reassuring. Here are some of the ways other retirees got their plans sorted.   

Useful links

Ways to increase your super contributions

https://www.industrysuper.com/calculators-and-tools/calculators/find-extra-money-for-super

See how your super might grow

https://www.industrysuper.com/compare/compare-the-pair

Countdown to retirement is part eight of the eight-part Road to Retirement series. This is the final piece in this series.

Want to learn more?

These two handy calculators on the Industry SuperFunds website will allow you to apply these thoughts to your own savings:

When can you access your super? 

Your retirement needs calculator 

Stick with your Industry SuperFund in retirement and your money could go further. Visit compareyourretirement.com today.

 This content is produced by The New Daily in partnership with Industry Super Australia.

This information provided in this article is of a general nature only and does not constitute financial or other advice. It is important to consider personal objectives, financial situations or particular needs when making financial decisions.