Retirement Plans in Place? Don’t Forget Your Top Asset.

Overview: Retirement planning in Australia

Retirement is a significant milestone in life, marking the transition from work to a well-earned period of relaxation. In Australia, the retirement age varies, but for those relying on the government age pension, the eligibility age is gradually increasing, reaching 67 in 2023. However, many Australians choose to retire earlier or later based on their financial situation and personal preferences.

The preservation age, typically between 55 and 60, determines when individuals can begin to access their superannuation funds, either for retirement or while still working. This age is key for planning your transition to retirement and understanding the implications of accessing your superannuation.

With age comes an increased risk of chronic disease, and coupled with the rising cost of living, planning for retirement must go beyond finances. Ensuring you have adequate funds and a robust healthcare plan is crucial for a comfortable and healthy retirement, and understanding your annual income needs is a key part of this planning.

That said, true retirement security isn’t just about superannuation balances. It’s about ensuring your health and finances align for the years ahead.

‍

When should I start planning for retirement?

The earlier you begin retirement planning, the better. Ideally, you should start planning for retirement in your 20s or 30s, but it’s never too late to start. Understanding your retirement income needs and living costs will help you develop a sustainable retirement plan. While financial planning is crucial, it is only one factor to consider when preparing for retirement.

When planning your retirement, consider:

• Your expected retirement age
• Your desired lifestyle and associated costs
• Healthcare expenses
• Strategies to grow your savings

While many people put off thinking about retirement, taking proactive steps early ensures a smoother transition when you decide to retire.

How much should I save for retirement income?

A common question is: how much income do you need to retire? The answer depends on your desired lifestyle and expected expenses beyond basic bills, such as healthcare. Experts suggest that to maintain a comfortable lifestyle, single retirees need a retirement income of around $46,000 per year, while couples need approximately $65,000 per year.

So, how much annual income do you need to retire? A general rule of thumb is having a super balance of at least $600,000 for singles and $690,000 for couples. However, individual needs vary.

Checking how much super you have at different life stages can help gauge whether you are on track for retirement. You can even work retirement goals into your current career goals to map a promotion plan for yourself.

What do finance experts and financial advisers say about retirement planning?

If you don’t have experience in financial planning, consult a financial adviser. Seeking professional advice ensures you choose the right investment option for your needs. Finance experts generally recommend various strategies to maximise your retirement savings:

• Voluntary super contributions: Making extra contributions throughout your career can boost your super balance by retirement.
• Salary sacrificing: Contributing a portion of your pre-tax salary into your super fund can reduce your taxable income while growing your retirement savings more efficiently.
• Tax-free benefits: Some voluntary super contributions offer tax advantages.
• Investment diversification: A financial planner may recommend diversifying your investment options within your super fund to balance risk and optimise long-term growth.

However, expert advice is only one factor to consider; it’s also important to evaluate your personal circumstances and financial goals.

Is retirement planning all about finances?

While money is crucial, planning your retirement also involves lifestyle and health considerations. 

Retirement should be about more than just finances—it should also focus on overall well-being to help you retire healthily and happily. 

There are two major considerations when it comes to health issues in retirement. Even minor ongoing health issues can make it difficult to enjoy your well-planned retirement. For example, if you experience chronic fatigue or stiffness, you may not feel capable of travel, hobbies or other retirement goals. 

Serious health issues are even more disruptive. Unexpected health events not only disrupt your retirement plans, but deplete your retirement savings as well. 

What unexpected health events can impact my retirement savings?

Several unforeseen factors can disrupt retirement income and retirement savings:

• Health crises: Serious health events such as heart attack, stroke and cancer.
• Family responsibilities: Caring for unwell elderly parents or a partner who has experienced a medical emergency.
• Aged care: Some chronic illnesses may make it necessary to move into aged care, a costly service that many do not plan for.

Preparing as best you can for these uncertainties will make your retirement plan more secure. Health insurance is one way to plan for health expenses in your retirement, ensuring that unexpected costs do not drastically reduce your annual income.

Is my health insurance covering me for retirement?

As you age, healthcare becomes more important. Senior insurance is essential to cover medical expenses, while life insurance for seniors helps protect loved ones.

A major risk is that a health crisis could wipe tens of thousands of dollars from your retirement savings. The increased risk of chronic disease makes it crucial to review your health insurance policies to ensure they meet not just your current needs, but your future needs as well. Be sure to factor the cost of increasing premiums into your retirement plans because health insurance does become more costly as you get older, impacting your annual income.

Health insurance provides a necessary safety net – but the best safety net is preventing chronic illness before it even happens.

How can I optimise health for a better retirement lifestyle?

Maintaining good health is key to enjoying your retirement years. Proactive steps to prevent disease and optimise health include:

• Preventing cardiovascular disease through regular exercise and a healthy diet.
• Reducing the risk of cancers with screenings and lifestyle changes.
• Strengthening musculoskeletal health with weight-bearing exercises.
• Managing metabolic health to prevent diabetes.
• Taking preventive measures against neurodegenerative conditions through specific interventions.

A smooth transition to retirement includes prioritising healthspan and longevity through preventive, proactive healthcare.

When should I start preventive healthcare?

The best time to start preventive healthcare is now. Many people think of health screenings, lifestyle changes, and medical checkups as something to worry about later in life, but early action can make all the difference.

Preventive healthcare is about staying ahead of illness, rather than reacting to it. Whether you're in your 20s, 40s, or approaching retirement, taking proactive steps can help you maintain a high quality of life for years to come. Conditions like cardiovascular disease, cancers, diabetes, and neurodegenerative disorders often develop silently over decades. By adopting healthy habits early, such as regular exercise, balanced nutrition, and routine screenings, you reduce the risk of serious health issues later on.

If you’re planning for retirement, preventive care becomes even more critical. As we age, the risk of chronic diseases increases, making regular check-ups and health assessments essential. Investing in preventive healthcare today can save you from significant medical expenses and complications in the future.

What is a preventive health check?

A preventive health check is a proactive medical assessment designed to detect potential health issues before they become serious. Often, the most serious disease processes are occurring in your body without symptoms. So, rather than waiting for symptoms to appear, preventive check-ups help identify risks early, allowing for timely interventions that can improve long-term health outcomes.

There are many different preventative health checks out there, but a comprehensive one should include:

• Blood tests – A complete blood test is an excellent diagnostic tool to check hormone levels, minerals, cholesterol, blood sugar, organ function, certain cancer markers, allergies, heavy metals and more.
• VO2 max - This tests the maximum amount of oxygen your body can use and absorb during exercise and indicates overall fitness level.
• Cancer screenings – There are many common cancers that can be detected early, such as prostate cancer and bowel cancer.
• Heart health assessments – Including ECG, calcium scoring tests for arterial plaque buildup and more.
• DEXA scan – To determine body composition, including visceral fat, muscle mass and bone density.
• Lifestyle evaluations – In-depth discussions on diet, exercise, sleep, and mental well-being.

Preventive health checks are essential at all ages, but they become even more critical as you approach retirement. With the increased risk of chronic disease over time, regular screenings help reduce your risk of developing conditions like cardiovascular disease, diabetes and neurodegenerative disorders before they significantly impact your life.

Everlab is Australia’s leading personal longevity clinic, offering the most comprehensive health screens and personalised prevention plans. Developed by a team of doctors, specialists and medical researchers, Everlab’s advanced diagnostics can detect disease risk early enough to slow or stop progression with targeted interventions.

Preventive healthcare and your retirement

One of the best ways to enjoy a long and fulfilling retirement is through preventive healthcare. By prioritising your health, you’ll be protecting your most important asset–your health. 

By taking charge of your well-being today, you increase your chances of a longer, healthier retirement where you can truly enjoy the lifestyle you’ve worked so hard to achieve.

‍