RADIANCE WEALTH GUIDE
Ravi Moolchandani, Principal Financial Adviser & Director
Ages 50–64 are your critical window. The earlier you start planning, the more options you have to shape a comfortable retirement.
Start with lifestyle, not numbers. Define the retirement you want first — the financial plan follows from there.
Focus on income, not just a lump sum. You need a realistic annual income target based on how you actually want to live.
Your spending changes over time. Retirement has three distinct phases — your plan and investment strategy need to evolve with each one.
Powerful tools are available to you. Super contributions, catch-up rules, investment strategy, and tax planning can all help you retire on your terms.
A good adviser asks the questions you don't know to ask. Professional guidance helps you coordinate everything and avoid costly mistakes.
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In the financial planning world, pre-retirement generally refers to the period roughly 5 to 15 years before you plan to stop full-time work. For most Australians, that puts us somewhere in the 50 to 64 age bracket.
But here is an important nuance. From my experience working with hundreds of clients at Radiance Wealth, I would actually break this bracket into two distinct phases:
Why do I draw the line at 55 rather than 50? It comes down to longevity. Australians are living longer than ever. According to the Australian Bureau of Statistics, life expectancy at birth is now 81.1 years for men and 85.1 years for women. A 60-year-old man today can expect to live another 24.2 years on average, and a woman another 27.1 years.
Source: Australian Bureau of Statistics, Life Expectancy 2022–2024, released November 2025.
Because we are living longer, the government has raised the Age Pension age to 67. It used to be 65, and it may well increase again over time. So the goalposts have shifted — what we used to call pre-retirement at 50 is now more accurately an accumulation phase. You are still building, still growing. Pre-retirement planning, in the truest sense, really kicks in from around 55.
That said, if you are reading this at 50 and thinking about your future — that is a great instinct. The earlier you start, the more runway you have to build wealth, correct course, and set yourself up properly. 50 is a good age to begin getting ready, even if the real pre-retirement work intensifies from 55 onwards.
There is a unique challenge with planning for retirement that does not apply to most other major life projects. If you are building a house or launching a business, you generally know your start date and your end date. Retirement planning is different — you have an approximate start date, but the end date is completely uncertain.
At 55, you might live to 70, or you might live to 95. That is a potential 25-year difference in planning horizon. No other financial project asks you to plan for that level of uncertainty.
This is precisely why the 5 to 15 year window before retirement is so important:
From my conversations with clients, there are typically two main triggers that prompt someone in the 50 to 55 age bracket to make that first appointment:
In both cases, what they are really seeking is confidence. They want to know: am I on track? Can I actually do this? What do I need to change?
It does not matter whether you are in a strong asset position or a more modest one. If you still have a mortgage, kids at home, and an average super balance, you need to work harder and smarter to get retirement-ready. If you are debt-free with a solid asset base, then it is about restructuring those assets to work harder for you in the next phase. Either way, an adviser helps you create a clear path forward and protect what you have built.
The triggers I just described — an inheritance or a desire to retire early — are what typically bring people through our door. But there are a number of other reasons you should be thinking about retirement planning in your 50s, even if none of those triggers apply to you yet.
These are the things that many people do not think about until it is too late:
When people sit down with me for the first time, the same questions come up again and again:
If any of these worries sound familiar, you are not alone. And the fact that you are thinking about them now, rather than ignoring them, puts you ahead of most people.
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This is always where we start the conversation at Radiance Wealth, because the money side of retirement planning only makes sense when you know what kind of life you are planning for.
Retirement does not mean the same thing to everyone. Some people want a complete stop — they are done with work and want to enjoy their freedom. Others want a phased transition, working one or two days a week while they ease into it. From my experience, here are the three things most Australians over 60 tell me they are most focused on:
Hobbies tend to sort themselves out naturally. Once people retire, they find time for the things they enjoy. But travel, part-time work, and volunteering are the three pillars that most pre-retirees I work with are actively planning around.
That said, your priorities may be completely different — and that is perfectly fine. Perhaps you are passionate about starting a small business, or you want to spend more time with grandchildren. Maybe your focus is on creative pursuits, study, or caring for an ageing parent. Some people dream of a sea change to the coast; others want to stay exactly where they are and simply slow down. There is no standard template for a good retirement.
The point is that your retirement plan should be built around your life, not someone else’s. Whatever matters most to you — whether it appears on the list above or not — is what your financial plan needs to support. Every person’s situation is unique, and the best retirement plans are the ones that reflect that.
Before you can put numbers on your retirement plan, you need to get clear on the lifestyle questions. These are conversations to have with your partner, or with yourself if you are planning solo:
Here is the key insight: money is the support act to your lifestyle, not the main event. Too many people start with the question “how much money do I need?” when they should be starting with “what kind of life do I want to live?”
Once you have a clear vision for your retirement, the financial planning becomes much more purposeful. You are not chasing arbitrary numbers or overreacting to headlines. You are building a plan that supports a specific, realistic lifestyle.
And a clear vision helps you avoid two common traps: underspending and overspending. I cannot emphasise enough how important it is to get this balance right. You do not want to leave too much money behind for your kids while denying yourself a comfortable life right now. But you also do not want to burn through your savings in the first five years.
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One of the biggest misconceptions in retirement planning is that you need to hit a single magic number — some mythical lump sum that means you are “set for life.” The reality is more nuanced than that.
What actually matters is income. Specifically, you need to understand:
Both are important. If you have assets that can produce your income, you are in a strong position. So during the accumulation phase between 50 and 60, you are constantly growing those assets — through super contributions, inheritance, savings, and investments. The goal is to build an asset base that, combined, gives you a comfortable income from 60 through to 85 and beyond.
This is something that surprises a lot of people: your spending needs in retirement are not constant. They change significantly as you age. At Radiance Wealth, we plan around three distinct phases:
| Phase | What Life Looks Like | Income Needs |
|---|---|---|
| Phase 1: Ages 60–67 | Still working part-time, travelling overseas annually (4–5 week trips), active lifestyle, mortgage ideally paid off. | Higher income needed to fund travel and active living while bridging the gap before Age Pension. |
| Phase 2: Ages 67–75 | Less overseas travel, more time with grandchildren, local outings, family gatherings, potentially part Age Pension. | Moderate income. Overseas travel reduces, but local spending and family support continue. |
| Phase 3: Ages 75–85+ | Mostly local, interstate travel tapers off, more time at home, potential health and care costs. | Lower lifestyle spending, but possible increase in health and care expenses. |
Source: Based on Radiance Wealth client planning methodology.
Understanding that your income requirements are different in each of these phases is critical. It means your investment strategy also needs to evolve over time — from growth-focused in the early years to more income-focused as you move through retirement.
This is one of the most important transitions in retirement planning, and it is something many people miss.
During the accumulation phase (50 to 60), you might be perfectly comfortable holding an investment property for its capital growth, even if the rental income is modest. Capital growth is the priority because you are building your asset base.
But from 60 onwards, the conversation shifts. Income becomes the big priority. Some clients tell me: “I do not want capital growth anymore — I want products that drive more income.” So we help them transition their asset base from growth-oriented investments to income-producing ones.
And when you are making that switch, timing matters. There are capital gains tax considerations about when you sell or restructure assets. Getting the timing right can save you tens of thousands of dollars. This is exactly the kind of nuance that a financial adviser helps you navigate.
The Association of Superannuation Funds of Australia (ASFA) publishes the ASFA Retirement Standard, which is a widely used benchmark for retirement spending. As of the December quarter 2025, the numbers for homeowners aged 65 and over are:
| Lifestyle Level | Couple (per year) | Single (per year) |
|---|---|---|
| Comfortable | $77,375 | $54,800 (approx.) |
| Modest | $50,866 | $35,199 |
Source: ASFA Retirement Standard, December Quarter 2025. Assumes homeownership. See superannuation.asn.au.
A comfortable lifestyle includes things like private health insurance, a reasonable car, regular dining out, domestic and occasional international holidays, and a good standard of living. A modest lifestyle covers the basics — essential healthcare, a cheaper car, limited dining out, and one domestic holiday per year.
The lump sums ASFA estimates you need at retirement to fund these lifestyles are $730,000 for a couple or $630,000 for a single person at the comfortable level. For a modest retirement, it is $120,000 for a couple and $110,000 for a single — with the Age Pension making up most of the income.
Source: ASFA Retirement Standard lump sum estimates, updated February 2026. See superannuation.asn.au.
From my experience, the average Australian couple spends about $72,000 a year after retirement at a moderate level — not the bare minimum, but not extravagant either. That lines up closely with the ASFA comfortable standard.
People ask me this all the time: “Ravi, how much do I need to retire?” And the honest answer is: there is no magic number.
The right amount depends entirely on your spending habits, where you live, your household expenses, and your goals. It all comes back to your individual situation.
Most people actually know their own situation quite well. They have a realistic sense of what they can and cannot afford. That makes the planning process easier, because we are working with realistic numbers from the start.
Interestingly, I find that most people tend to overestimate what they will actually do in retirement. They imagine a very active, expensive lifestyle, but in practice, spending often settles into a more moderate pattern. That is not a bad thing — it just means the plan needs to be realistic, not aspirational.
What I encourage clients to do is think in terms of a range: what is your “comfortable minimum” and what is your “ideal”? Then we plan for both and revisit regularly.
There are some useful online tools available, such as ASIC’s Moneysmart Retirement Planner, where you can input your own information and get an estimate of your retirement income.
These tools are useful as a starting point, particularly for people who are diligent about tracking their expenses and who know their financial situation well. But they have significant limitations. A standard online calculator will not factor in your capital gains tax liability, inflation adjustments, your specific risk profile, or the interaction between different asset types.
Several key factors can significantly shift how much you need for a comfortable retirement:
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Understanding the key ages in Australia’s retirement system is essential for planning. There are three important age milestones, and they are not the same thing:
Your preservation age is the earliest age you can access your superannuation savings, provided you meet a condition of release (such as permanently retiring from the workforce). For anyone born on or after 1 July 1964, the preservation age is 60.
| Date of Birth | Preservation Age |
|---|---|
| Before 1 July 1960 | 55 |
| 1 July 1960 – 30 June 1961 | 56 |
| 1 July 1961 – 30 June 1962 | 57 |
| 1 July 1962 – 30 June 1963 | 58 |
| 1 July 1963 – 30 June 1964 | 59 |
| From 1 July 1964 | 60 |
Source: Australian Taxation Office (ATO). See ato.gov.au.
Once you reach 60 and leave an employer, you can access your super without having to declare permanent retirement. At age 65, you can access your super regardless of your employment status.
Important: there is a difference between taking a lump sum and starting an income stream (pension). Many people choose to convert their super into an account-based pension that provides regular payments in retirement, rather than withdrawing everything as a lump sum. We help clients determine which approach suits their situation.
The Age Pension age in Australia is 67 for anyone born on or after 1 January 1957. This is completely separate from your superannuation preservation age.
To receive the Age Pension, you must meet both age requirements and means testing (which considers your assets and income). As at March 2026, the full Age Pension rate is approximately $1,178.70 per fortnight for singles and $1,777 per fortnight (combined) for couples.
Source: Services Australia. Rates current as at March 2026. See servicesaustralia.gov.au.
Many retirees use a combination of their own super savings and a part Age Pension. Whether you qualify for the full pension, a part pension, or no pension at all depends on your total assets and assessable income.
For people in their 50s, the Age Pension is not the primary planning focus. The means testing thresholds change over time, and what applies today may be different in 10 to 15 years. At this stage, the priority is accumulating and saving on tax. The Age Pension becomes a more active planning consideration as you approach 65.
Here is where it gets interesting from a planning perspective. Many people want to stop full-time work before they can access the Age Pension — sometimes even before they reach preservation age.
For example, if you want to retire at 60 but cannot access the Age Pension until 67, that is a seven-year gap where you need to fund your lifestyle entirely from your own resources. Planning for this gap is one of the most important things you can do.
Strategies to bridge the gap include accessing super after reaching preservation age, using non-super investments, Transition to Retirement (TTR) income streams, and careful management of any redundancy or long service leave payouts.
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One of the first things I do with every client is what I call a super health check. A superannuation review is critically important, because the vast majority of people I see are in a default investment option. And that default is almost always too conservative for someone with 10 to 15 years until retirement.
Here is what I mean. If you joined your employer’s super fund at 25 or 30 and never changed your investment option, you have probably been sitting in a “balanced” or “moderate” profile for your entire working life. For someone with decades of earning ahead of them, that is a significant missed opportunity.
In my experience, being in the wrong investment option at a young age can cost you hundreds of thousands of dollars by the time you reach retirement. If you were earning $100,000 and sitting in a moderate profile from age 27, you may have compromised as much as half a million dollars of potential retirement savings.
So, the three questions to ask about your super right now are:
One of the most powerful tools available to Australians aged 50 to 64 is the ability to boost super contributions. Here are the key options:
As of 1 July 2025, the Superannuation Guarantee rate is 12% of your ordinary time earnings. This is the minimum your employer must contribute. It represents the completion of the legislated increase from 9.5% that began in 2021.
Source: ATO; AustralianSuper FY26 guidance. The SG rate reached 12% from 1 July 2025.
The concessional contributions cap for 2025–26 is $30,000 per financial year. This includes your employer’s SG contributions, any salary sacrifice arrangements, and personal contributions for which you claim a tax deduction. Concessional contributions are taxed at a flat 15% inside your super fund, which for most people is significantly less than their marginal tax rate.
Source: ATO, Key Superannuation Rates and Thresholds 2025–26.
If your total super balance is less than $500,000 at 30 June of the previous financial year, you may be able to carry forward unused concessional cap amounts from the last five years. This is one of the best catch-up strategies available, particularly for people returning from career breaks, parental leave, or periods of part-time work.
For example, if you did not use your full $27,500 cap in the 2021–22 through 2024–25 years, those unused amounts can be added to your current year’s $30,000 cap — potentially allowing you to contribute $80,000 or more in a single year.
The non-concessional contributions cap for 2025–26 is $120,000 per financial year. If you are under 75 and your total super balance is below $1.76 million, you can also use the bring-forward rule to contribute up to $360,000 over three years.
This is particularly relevant for people who receive an inheritance. If you inherit a lump sum, the money goes into your bank account first, as a normal transaction. If that money is sitting in a bank account earning interest, that interest is taxable at your marginal rate. But if you contribute it to super via a non-concessional contribution, the earnings inside super are taxed at just 15%. So the strategy here is about getting the right amount into the right structure at the right time.
Source: ATO, Non-Concessional Contributions Cap. Caps current for 2025–26 financial year.
If your spouse is a low-income earner or not working, you may be eligible for a tax offset of up to $540 per year by making super contributions on their behalf. Additionally, the Low Income Super Tax Offset (LISTO) provides a government contribution of up to $500 per year for people earning $37,000 or less.
| Contribution Type | Cap (2025–26) | Key Conditions |
|---|---|---|
| Concessional (before-tax) | $30,000/year | Includes SG + salary sacrifice + personal deductible. Taxed at 15% in fund. |
| Catch-up concessional | Varies (up to 5 years unused caps) | Super balance must be under $500,000 at prior 30 June. |
| Non-concessional (after-tax) | $120,000/year | Bring-forward: up to $360,000 over 3 years if balance < $1.76m. |
| Spouse contribution offset | Up to $540 tax offset | Receiving spouse income < $40,000. |
| LISTO | Up to $500 govt payment | Adjusted taxable income $37,000 or less. |
Source: ATO Key Superannuation Rates and Thresholds 2025–26.
This is where I find the biggest gap between where people are and where they should be. Most people I see are in a default option that is less aggressive and more passive than it should be for their age and time horizon.
There are two broad approaches to investing inside super:
Active strategies tend to carry a higher risk profile, but they also offer the potential for higher returns. The right balance depends on your age, your time horizon, and your appetite for risk.
If you are 50 with 10 to 15 years until retirement, you still potentially have 30 or more years of life ahead of you. That is a long investment horizon. Being too conservative too early can cost you significantly in missed growth. On the other hand, if you are 63 and planning to retire next year, taking on too much risk is dangerous because you do not have time to recover from a downturn.
The question of whether to invest inside or outside super is one I discuss with virtually every client. The answer depends on three key factors: whether you have a mortgage, your age, and your tax bracket.
The key trade-off is always between tax efficiency and accessibility. Super gives you the best tax treatment but locks your money away until preservation age. Outside super, you pay more tax but can access your money whenever you need it. Your adviser helps you find the right mix.
If there is one section of this guide you turn into an action plan, make it this one. Here is what I recommend for anyone in their 50s:
This first part has covered the essential foundations: understanding where you are now, defining your retirement lifestyle, figuring out how much money you need, when you can actually retire, and getting your super working harder.
In Part 2, we will continue working through the remaining steps:
Book a pre-retirement planning conversation with Ravi or Sunny. A simple conversation today can provide the clarity and confidence you need for tomorrow.
Disclaimer: The information provided in this guide is general advice only. It has been prepared without taking into account any of your individual objectives, financial situation or needs. Before acting on this advice, you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs.
Radiance Wealth is a Corporate Authorised Representative of RI Advice Group Pty Ltd ABN 23 001 774 125 AFSL 238429, an Australian Financial Services Licensee.
All figures, rates and thresholds referenced in this guide are believed to be current as at March 2026 but are subject to change. Readers should verify current rates with the Australian Taxation Office (ato.gov.au), Services Australia (servicesaustralia.gov.au), and ASIC Moneysmart (moneysmart.gov.au) before making financial decisions.
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