The secrets to a stress-free retirement
Written and accurate as at: Jul 14, 2025 Current Stats & Facts
Many people go into retirement underprepared, either because they didn’t give much thought to it ahead of time or it came about earlier than expected. Without a clear plan, what should be a relaxing and rewarding time in life can wind up filled with more uncertainty than you’re comfortable with.
Fortunately, there are some things you can do at the outset to make sure you spend less time in retirement worrying and more time doing what you’ve always wanted to do.
Know how much you need to live on (and have a budget)
Tracking your spending gets a bad wrap sometimes for being dull, but when it comes to retirement planning it’s an essential. Unlike during your working years, your savings won’t be getting topped up regularly by an employer, so how long your money lasts largely depends on how well you manage it.
Start by categorising your spending into essential needs (think groceries, housing costs and utilities). From there, you can work out how much of your income is left over to spend on travel, dining out and any hobbies you might have. These are the things that add joy and variety to life, so you probably don’t want to skimp on them. But it’s all about striking a balance.
Be sure to account for inflation
Your retirement plan won’t be of much use if it assumes that today’s dollars will be worth the same in the future. To really be prepared, you need to take into account inflation and the effect it’s likely to have on your spending and saving.
One of the ways you can combat the effects of inflation is to diversify your investments. Here, it might be helpful to talk to a financial adviser about spreading your money across asset classes that serve different purposes. For example, growth assets have the potential to deliver above inflation returns, while more defensive assets can help preserve your shorter and medium term funds.
Beyond your investments, you might be able to weather any inflationary shocks by making tweaks to your lifestyle. That might mean trimming your discretionary spending, holding off on major purchases, or even re-entering the workforce on a part-time basis.
Know your Government entitlements
Assuming you satisfy the income and assets tests, the Age Pension can be a much-needed supplement to the money you get from super. Just remember to apply as soon as you’re eligible so that any waiting times are kept to a minimum.
But there’s more on the table besides the fortnightly payments. If you qualify, Centrelink will automatically send you a Pensioner Concession Card. This can make life easier by getting you discounts on doctor visits, certain medications, energy bills, and public transport.
And if you’ve reached pension age but your income and assets are above the allowable limits, don’t worry – you might be eligible for a Commonwealth Seniors Health Card. This offers discounts on healthcare and other services, but unlike the Pensioner Concession Card, you’ll have to apply for one yourself.
Keep healthcare and aged care costs in mind
The fact we live longer than we used to might be a blessing, but it opens the door to a whole lot of logistical concerns. In particular, you’ll need to be prepared for your expenses to go up later in life as you become more dependent and require more care.
Fortunately, there are relatively low-cost residential aged care options out there, and depending on your assets and income, further government support might be available to help ease the burden. You can also choose to ‘age in place’ by accessing in-home care services, or even by fitting your home with features that make it a tad more safe.
