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3 things to consider when preparing for retirement

3 things to consider when planning for retirement1

A staggering 710,000 Australians intend to retire in the next five years,ᵃ but many are finding themselves unprepared for this significant life transition.

The Retirement Income Review highlights that much of Australia’s growing retiree population isn’t adequately ready for their post-work chapter, so it’s no surprise that two-thirds of Australians worry they won’t have enough for the retirement they want ᵇ.

As many of us spend almost a third of our lives in retirement,ᶜ naturally, the transition away from work life can be overshadowed with uncertainty and the fear of running out of money, but it doesn’t have to be. The key is to start planning today because retirement is not tomorrow’s problem. To support you along your journey to a more secure and well-deserved retirement, we unpack the 3 things you should consider to prepare for this significant milestone.



3 things to consider to retire with confidence

1. Are you financially prepared for retirement?

Retirement is an emotional journey, not just a financial decision.

Retirement represents a significant milestone for many, marking the wrap up of their professional careers and the transition into a new phase of life, hopefully with the financial capability to enjoy an almost childhood-like freedom.

Therefore, it’s important to take a moment to review your current financial position along with your retirement goals, such as your desired retirement age, lifestyle, expenses and income sources to see if you’re on track to retire with confidence. Knowing how long you’ll be in retirement, how much you’ll need and where that income will come from, are key considerations of the initial retirement planning phase.

Seeking advice from a financial adviser can help you better understand your current position including other retirement income sources available and to shape your retirement strategy so that you’re emotionally and financially prepared for the next chapter of life.

How long you may spend in retirement could be based on life expectancy estimates*

3 things to consider when planning for retirement

*Life expectancy estimates have been calculated based on the Australian Life Tables 2015-2017 with 25-year mortality improvements, as provided by the Australian Government Actuary.

2. Do you know when you can access superannuation and other government entitlements?

Did you know Australians often apply for the Age Pension an average of 2.3 years after becoming eligible? It’s estimated that single retirees are foregoing an average of $37,000 in Age Pension entitlements while couples may forego close to $60,000ᵈ. There’s also no back pay when it comes to the Age Pension, that’s why being aware of age requirements is essential for effective retirement planning to maximise your financial resources.

When it comes to accessing some or all of your super, you generally gain access once you reach preservation age, which ranges between 55 and 60, depending on your birthdate. You also need to have met a condition of release, which includes reaching your preservation age and permanently retiring or ceasing an employment arrangement on or after age 60. The qualifying age for the Age Pension is now 67 and you can submit your claim in the 13 weeks before you turn 67.

3. Do you know the retirement income sources?

A key consideration for a good retirement plan is to maximise your retirement income from a combination of retirement income sources. Let’s recap four means Australians use to support their retirement:

Account-Based Pension

A flexible superannuation income stream offering a wide range of investment choices, lump sum withdrawals, and variable income. It’s important to keep in mind that your account-based pension only lasts as long as your super money does and it’s not a guaranteed income for life.

Age Pension

Government social security support that includes income and benefits like healthcare discounts. Eligibility for the Age Pension offers essential benefits. The amount received changes with indexation and varies based on your total assets and income. Approximately two-thirds of  Australians over 66 years old receive the Age Pension.ᵉ


Wealth accumulated over time being savings, the family home, inheritance, shares and other investments.

Lifetime Annuities

Lifetime annuities provide regular income that’s guaranteed for life and can enhance access to the Age Pension. They can complement account-based pensions by addressing longevity risks. Generally, individuals aged 50 - 95 can purchase LifeIncome, a lifetime annuity, using super or non-super monies. Please note that when using super monies, individuals will need to have met a condition of release.

Investment-linked lifetime annuities, pioneered by Generation Life, are the new breed of flexible, lifetime annuities where performance is linked to your investment choice. Lifetime annuities can generate an income for life that grows over the longer term.




At Generation Life, we understand that retirement is an emotional journey, not just a financial decision. LifeIncome, Generation Life’s investment-linked lifetime annuity, offers retirees the confidence to enjoy their retirement by receiving a regular income that’s guaranteed for life.

Being investment-linked with 29 investment options, LifeIncome provides more income, more certainty, and more choice along with the option to have higher income during the earlier, more active years to minimise 'regret risk'. It can complement other income sources like account-based pensions and  potentially enhance access to the Age Pension. LifeIncome helps address longevity risks for you to enjoy the secure and happy retirement you deserve.



Are you an investor?

For more information about how Generation Life’s innovative investment-linked lifetime annuity solution can help you unlock your dream retirement, please speak to your financial adviser.


Are you a financial adviser?

We can run technical strategies and tailored case scenarios to help you and your clients achieve their retirement and legacy goals.

a. Retirement and Retirement Intentions, Australia 2022-2023, 22 May 2024, accessed 17 June 2024 

b. Australian Retirement Trust Research Run by YouGov, 2022, accessed 17 June 2024

c. Based on ABS: Retirement and Retirement Intentions, Australia 2020-2021, 29 August 2023, accessed 17 June 2024 and ABS: Life Expectancy 2020-2022, 8 November 2023, accessed 17 June 2024

d. The most expensive mistake retirees can make, SuperEd, 15 March 2015, accessed 17 June 2024

e. Am I eligible for the Age Pension , 14 June 2024, accessed 17 June 2024