Am I Ready to Retire?

When clients ask “Am I ready to retire?”, the answer isn’t simply about age or even a single savings number. It’s about how future lifestyle, assets, and the uncertainties ahead align.

1. Start with the lifestyle question

What does an ideal retirement look like? For some it’s travel, hobbies, time with family; for others it’s more modest, maybe staying local, reducing work gradually or pursuing a passion project. The Association of Superannuation Funds of Australian (ASFA) Retirement Standard[1] provides recent benchmarks: for example, a couple seeking a ‘comfortable’ lifestyle might target around $75,319 per year, while a ‘modest' lifestyle might require closer to $49,992 per year.[2]

That kind of clarity helps turn the vague “I want to retire” into “I need ~$X per year”.

2. Align savings targets with goals

Compare the day-to-day living expectations, with what savings required to make them a reality. ASFA estimates that to fund a comfortable retirement at age 67 a single person would need $595,000 and a couple would need $690,000 (in today’s dollars).[3]

Use these numbers as reference-points, not absolutes, and adjust for own home-ownership status, spending patterns and income sources.

3. Don’t underestimate the risks

Even with a clear target and savings path, retirement planning must factor in what can go wrong. Inflation, investment volatility, longer lifespans, health costs, changing family dynamics, these all matter and need to be factored into retirement planning.

ASFA’s figures make lots of assumptions and that a part-Age Pension support will be in place for many. However, the Age Pension may not be as generous 20 years in the future and the rules may change over time.

Ask yourself: what if investments under-perform? What if life extends 10, 15 years longer than planned? What if health needs and associated costs rise? Building in flexibility and buffers is a critical part of financial planning.

4. Prepare for the non-financial side

Retirement isn’t just a financial milestone, it’s a life transition. Many new retirees find the shift difficult if they haven’t planned for structure, meaning and social connection. As a Financial Planner, I encourage clients to think about how they’ll stay active, engaged and fulfilled once employment ends.

Conclusion

• Financial readiness to retire isn’t about one magic figure. It’s about having a:

• Clear vision of what the day-to-day of retirement looks like;

• Savings and income that reasonably align with that vision; and

• Plan that anticipates risk and change.

Book a confidential consultation with a Hood Sweeney Securities* adviser today if you need support with your financial plan including how your portfolio is structured and any income objectives.

Author: Jake Mounfield (Representative of Hood Sweeney Securities AFS Licence No. 220897) is a Financial Planner | Strategy & Investments at Hood Sweeney Securities.

*The information in this article contains general advice and is provided by Hood Sweeney Securities Pty Ltd AFSL 220897. This article has been prepared without taking your personal objectives, financial situation or needs into account. Before acting on this general advice, you should consider the appropriateness of it having regard to your personal objectives, financial situation and needs. Please refer to our FSG (available at https://www.hoodsweeney.com.au/services/financial-planning/how-we-service-our-clients/financial-services-guide) for contact information and information about remuneration and associations with product issuers.

1. https://www.superannuation.asn.au/consumers/retirement-standard

2. ‘Comfortable’ and ‘modest’ retirement are defined by ASFA in their Retirement Standard.

3. ASFA figures assume home ownership and part-Age Pension support.