Navigating a happy retirement on a shoestring

Many of us look forward to retirement, but for some of us with modest super balances, the idea can be daunting.  

While a small super balance may present challenges, it's important to know that a happy retirement is still possible with careful planning and the right strategies in place. Here’s how to pave the way to a fulfilling retirement. 

1. Assess your lifestyle needs 

The first step to a happy retirement is to set realistic expectations, understanding that you may not be able to maintain the same lifestyle you had during your working years. Adjust your expectations and focus on the essentials that will contribute to your happiness. 

2. Consider delaying retirement 

If your super balance isn’t quite where you want it to be, an effective strategy is to delay retirement. Continuing to work for a few more years allows you to accumulate additional savings, increase your super balance, and qualify for higher pension payments when you do retire. 

3. Consider part-time work 

If continuing full-time employment isn't feasible or desirable, consider part-time work or consulting in your field of expertise. Part-time income can supplement your super, providing more financial security and allowing you to enjoy retirement activities. 

4. Revise your budget  

Creating a detailed retirement budget is crucial for those with limited savings. Track your expenses, prioritise essential costs, and identify areas where you can cut back without sacrificing your quality of life. Budgeting software and apps can help you manage your finances effectively. You can also use our retirement income needs calculator. 

5. Explore government benefits 

Australia offers various government benefits and pension schemes to support retirees. You may be eligible for the government Age Pension which can help your super last longer. Refer to Services Australia for more information including eligibility.  

6. Downsize and reduce expenses 

Consider downsizing your home and reduce ongoing housing costs. Smaller homes or retirement communities may offer a more budget-friendly and maintenance-free lifestyle. You can also evaluate your discretionary spending and look for ways to save. 

7. Optimise your super  

Consider if you can make voluntary contributions such as salary sacrifice or co-contributions.

8. Embrace a fulfilling lifestyle 

Happiness in retirement isn't only dependent on financial resources. Nurture your social connections, pursue hobbies, volunteer and engage in activities that make you happy and bring purpose to your life. A fulfilling lifestyle can enhance your overall wellbeing. 

A modest super balance may present challenges, but it doesn't have to dictate the quality of your retirement. With careful planning, realistic expectations, and a proactive approach to managing your finances, we can still enjoy a happy retirement. Take on opportunities available to you, talk to us when needed, and focus on the aspects of retirement that truly matter—your health and happiness. 

For more information on planning your ideal retirement, head to our retirement hub.

The retirement hub

Speak with a super specialist 

Navigating retirement may seem daunting, but with the right information and support, you can make informed decisions. 

We’re always here to help, whether you have questions about retirement or when might be the right time to begin winding down from work. 

Book a time to talk with a super specialist, phone one of our team members on 1800 675 839 between 8am and 8pm AEST Mon-Fri or email us.