Six ways to prepare in your lead up to retirement

If you’re in your 50s, you may already be considering when you plan to retire.

In fact, for many people, it’s a time when the runway to retirement suddenly comes into view.

When you choose to land on that runway is largely up to you, but keep in mind that individuals can only start legally accessing their super after turning 60, with some limited exceptions including financial hardship and on compassionate grounds.

Your 50s are often a prime opportunity to maximise your super balance, lock in long term financial security and set yourself up for a rewarding and comfortable retirement.

Below are six steps that can help you to reshape your retirement financial trajectory before you decide to fully stop working.

1. Get clear on your retirement goals

Before you start fine tuning your super strategy, it’s important to know what you’re aiming to achieve.

Do you already have a picture of your ideal retirement life? Maybe it’s simply having the total freedom to choose how you spend your days, which could include doing some travel or volunteering work. Whatever your vision looks like, it will come with a price tag.

So, your 50s is a good time to run some numbers. Use your super fund’s retirement modelling tools to project your future balance and compare it with what you expect to realistically need.

We have a range of calculators on the legalsuper website to help you track your progress and see how you can improve your retirement savings outcome. Click here to access the calculators on our website.

If you see that there’s a financial gap, the good news is you still have time to close it.

2. Recheck your investment strategy

Superannuation should always be regarded as a long-term investment; however in your 50s it’s worthwhile rechecking that your current investment strategy still aligns with your personal objectives and risk profile.

With retirement potentially 10-15 years away, the balance between growth and capital preservation becomes more important. High-growth strategies may carry more volatility than you are comfortable with as retirement approaches.

A major market downturn close to retirement can materially impact your super balance, so consider how well you’re positioned to weather future volatility.

Another thing to consider is that once you do retire you are likely to be more dependent on having a regular income stream to cover your living expenses. It’s important to ensure that your current investment strategy will meet your future income needs. You can check legalsuper’s wide range of super investment solutions here. For personalised investment advice consider consulting a licensed financial adviser.

3. Dial up your super contributions

Your 50s often bring some relief in financial pressures. Your mortgage may be smaller, or completely paid off, kids may now be independent, and your income may be at its peak.

When considered together, now could be a perfect time to start funnelling more money into your super. Salary sacrificing is one of the most effective tools at your disposal. By directing part of your pre tax income into super, you reduce your taxable income and boost your retirement savings at the same time.

If you’ve got savings sitting outside of super, perhaps in a bank account or investment portfolio this is an opportunity to boost your retirement. These savings can be considered non-concessional contributions by being brought into super and as such, receive the benefits of a lower-tax environment while still growing.

Remember that there are limitations on how much money you can put into your super in any one financial year. You can check those annual contribution limits on our website here.

Investment earnings inside super are taxed at just 15%*, which means more of your money stays invested, working for your future. When you retire and move your super into an account-based pension all earnings will become tax-free.

Every extra dollar you contribute now will help on your journey towards achieving a more financially secure retirement.

4. Catch up using unused concessional contributions

If your contribution history hasn’t always been consistent, you may be able to take advantage of the carry forward concessional contribution rules. These allow eligible members[AM8.1] to use unused portions of their concessional cap from the past five financial years. To be eligible your total super balance must be less than $500,00 at 30 June of the previous financial year.

This is a powerful catch up mechanism. It lets you make larger pre tax contributions in years when you have the capacity, helping you rebuild momentum and strengthen your retirement position quickly.

For many people in their 50s, this is one of the most effective ways to close the gap between their current balance and their long term goals.

5. Split contributions with your spouse

This is an often-overlooked strategy that can be particularly useful in your pre-retirement years, especially if you and your spouse have a significant difference in your super balances.

It involves reallocating pre-tax contributions such as employer Super Guarantee contributions, salary sacrificed amounts, or personal deductible contributions to your spouse’s super account.

Doing this can help even out super balances between couples. Another key benefit is that it can allow an older spouse to access tax-free super benefits earlier once they retire and move their money into an account-based pension, and it may also improve access to the government’s Age Pension. You can learn more about contributions splitting on our website  here.

6. Consider downsizing your home

The Federal Government’s home downsizer measure provides another method of boosting retirement savings.

The downsizer measure allows eligible Australians aged 55 or older to contribute up to $300,000 from the sale of their home into super, outside the usual contribution caps. Couples combined can contribute up to $600,000.

There are a range of conditions that need to be met before being able to take advantage of this measure. You can read more about this measure on our website here.

Take control in your 50s

Your 50s are often your power years because they are the time where smart decisions can dramatically reshape your retirement future.

Assess your goals, maximise your contributions and consider all the strategies that are available to you. Doing so will give you the best chance of achieving your retirement goals.

Note: *From 1 July 2026, an additional 15% tax is applied on the proportion of super earnings relating to super balances above $3 million. A further 10% earnings tax is applied when a super balance exceeds $10 million.