Last updated: 22 July 2026
Retirement has a habit of feeling far away until it suddenly does not.
For years, super sits in the background. Employer contributions arrive, statements appear and the balance moves around. Then someone reaches their fifties, runs a calculator and realises the numbers may not support the retirement they pictured.
That moment can be uncomfortable. It can also be useful.
A financial consultant can help turn a vague hope into a plan built around dates, spending, debt, super and the income you may need after work ends.
The consultant should not begin by selling an investment product. They should begin with your life.
According to my research, useful retirement planning starts with four practical questions: when do you want to stop working, what will your household spend, where will the income come from and what happens when the assumptions go wrong?
General information only: Retirement outcomes depend on personal circumstances, investment returns, tax, super rules, government-payment rules and future spending. A financial consultant may not be authorised to provide personal financial product advice. Check the person’s registration, qualifications and authorised services before acting on a recommendation.
First, check who is giving the advice
“Financial consultant” is a broad title.
It may describe someone who prepares budgets, reviews business finances or helps households organise debt. It may also describe a registered financial adviser who provides personal advice about super, investments and retirement-income products.
The title does not prove what the person can legally do.
Before discussing your retirement savings, ask:
- Are you registered to provide personal financial advice?
- Who holds the Australian financial services licence?
- Which advice areas are you authorised to cover?
- Will you recommend specific financial products?
- How will you be paid?
Our guide to financial consultants and financial advisers explains why the wording on a business card should not decide who handles your retirement money.
A retirement plan needs more than a target balance
People often arrive with one number in mind.
They may say they need $500,000, $1 million or some other amount they heard in a podcast.
A balance by itself says very little.
The same amount can produce very different outcomes for:
- A homeowner with no mortgage.
- A renter whose housing costs keep rising.
- A couple sharing household expenses.
- A single retiree supporting an adult child.
- Someone with large medical or travel costs.
A consultant should work backwards from expected spending.
They need to understand where you plan to live, what debts may remain and how much flexibility you want. A household planning frequent overseas travel needs more than one expecting a quieter retirement close to home.
There is no useful retirement target without a lifestyle attached to it.
Decide what retirement means to you
Retirement does not always mean finishing work on one Friday and never earning another dollar.
You may want to:
- Leave full-time work and continue casually.
- Run a small business for a few years.
- Retire at the same time as your partner.
- Stop work early because of health or caring duties.
- Move into a less demanding role before fully retiring.
The consultant should ask what you want the first ten years of retirement to look like.
Do you expect to travel more while you are healthy? Will you help grandchildren or adult children? Are renovations planned before work ends?
From my experience comparing retirement projections, people often focus on the final account balance and overlook the calendar attached to it. Retiring at 60 and retiring at 67 are not minor variations of the same plan.
An earlier retirement means fewer years of contributions. The savings may also need to support more years of spending.
Calculate your current spending before estimating retirement spending
Guessing retirement expenses usually produces a neat number and a weak plan.
Start with bank statements.
Review at least several months and separate spending into categories:
- Housing.
- Food and household goods.
- Transport.
- Insurance.
- Health costs.
- Utilities.
- Entertainment.
- Travel.
- Family support.
- Home repairs.
Then identify what may change after work.
Commuting and work clothes may disappear. Mortgage repayments may end. Travel, health care and home maintenance could rise.
Do not remove tax from the budget without checking how your retirement income will be treated. Do not assume the family home becomes cost-free once the mortgage is gone. Rates, insurance, repairs and maintenance continue.
A consultant should produce an annual spending figure and a monthly cash-flow figure. You need both.
Keep inflation in the calculation
A retirement planned twenty years ahead should not use today’s spending figures without adjustment.
If your household spends $60,000 a year now, the same standard of living will probably cost more by the time you retire.
A consultant may present projections in:
- Future dollars, showing the amount expected at the later date.
- Today’s dollars, showing estimated buying power in terms you understand now.
Ask which version you are looking at.
A projected balance of $1.5 million in future dollars may sound generous. Its value in today’s buying power could be much lower.
Every retirement-income figure and every spending figure should use the same dollar basis. Mixing future dollars with today’s expenses can create false comfort.
Map every expected source of retirement income
Super may fund a large part of retirement, but it may not be the only source.
Your consultant should list:
- Superannuation.
- Cash savings.
- Shares and managed investments.
- Rental income.
- Business income.
- Defined benefit payments.
- A possible Age Pension entitlement.
- Income earned through part-time work.
Each source has different risks and access rules.
Super may be unavailable until a legal condition of release is met. Rental income may fall after repairs and vacancies. Part-time work may become unrealistic after a health change.
A government payment should not be inserted as a guaranteed amount without checking the household’s likely income, assets, age and residency position.
The consultant should show which income sources are dependable, which may move and which require assets to be sold.
Find the retirement-income gap
Once expected spending and income are estimated, the shortfall becomes visible.
Suppose a couple expects to spend $65,000 a year in today’s dollars.
Their expected income may include:
| Income source | Estimated annual amount |
|---|---|
| Account-based pension withdrawals | $42,000 |
| Interest and dividends | $6,000 |
| Part-time work during the first two years | $8,000 |
| Total during the first two years | $56,000 |
The initial gap is $9,000 a year.
After the part-time work ends, the gap becomes larger unless another income source starts or spending changes.
This calculation gives the consultant something concrete to solve.
Possible changes may include saving more, working longer, lowering the planned budget or reviewing investments. The answer may involve several modest changes rather than one severe cut.
Review your super before changing it
A consultant should examine more than the balance.
The review should cover:
- Employer contributions.
- Personal contributions.
- Investment options.
- Administration and investment fees.
- Insurance premiums.
- Beneficiary nominations.
- Any older super accounts.
Do not transfer super merely because a new fund has a lower headline fee.
A transfer may cancel life, disability or income-protection cover. An existing policy may be difficult to replace because of age, health or occupation.
The consultant should compare total costs, investment risk and insurance before recommending a change.
A recommendation to switch funds should explain what you gain, what you lose and how the consultant or adviser is paid.
Extra contributions need to fit the household budget
Adding more to super may improve the retirement projection.
That does not mean the maximum possible contribution is always sensible.
Money inside super is generally preserved until a legal release condition is met. A household with no emergency savings may create a new problem by locking away too much cash.
A consultant should compare several contribution levels.
For example:
| Extra monthly contribution | Extra annual contribution | Effect on current cash flow |
|---|---|---|
| $100 | $1,200 | Small but noticeable |
| $250 | $3,000 | Requires a budget adjustment |
| $500 | $6,000 | May reduce other savings or debt repayments |
The consultant should also check current contribution limits and amounts already being paid by employers.
The most aggressive option on the calculator may not be the one you can maintain.
A worked retirement projection
Consider an illustrative couple, Karen and Michael.
They are both 50 and have a combined super balance of $420,000. They plan to retire at 65.
The model assumes:
- A 15-year investment period.
- A 4% annual real return after inflation and investment costs.
- Annual contributions made at the end of each year.
- No withdrawals before retirement.
- Figures shown in today’s dollars.
Their current contribution path adds about $18,000 a year after contribution tax.
The consultant tests a second path that adds another $4,000 a year, bringing the amount credited to $22,000.
Our data shows the difference under those assumptions:
| Scenario at age 65 | Modelled balance in today’s dollars |
|---|---|
| Current contribution path | About $1,116,821 |
| Higher contribution path | About $1,196,915 |
| Difference | About $80,094 |
This is a mathematical illustration, not a forecast.
Actual returns will vary. Fees, tax, insurance and contribution timing can change the outcome.
The table does show why a consultant should model several options rather than present one final number as though it were certain.
Working longer can change the result quickly
Retiring later affects the plan in several ways.
More contributions enter the account. Existing investments remain untouched for longer. The number of retirement years needing funding may also reduce.
Using the higher-contribution assumptions from the previous example:
| Retirement age | Modelled balance in today’s dollars |
|---|---|
| 63 | About $1,065,121 |
| 65 | About $1,196,915 |
| 67 | About $1,339,463 |
Two extra years between 65 and 67 add roughly $142,548 under the model.
That does not mean everyone should work longer.
Health, redundancy, caring duties and workplace conditions may remove that choice. A useful plan includes an earlier-retirement scenario in case work ends sooner than expected.
Mortgage debt can change the retirement date
A household may have healthy super and still struggle to retire while carrying a large mortgage.
Suppose the planned retirement budget is $60,000 a year without loan repayments. A mortgage requiring another $18,000 a year lifts the income target to $78,000.
The consultant should compare:
- Paying extra into super.
- Paying down the mortgage.
- Splitting extra cash between both.
- Working until the loan is cleared.
- Downsizing or changing housing plans.
The answer depends on interest rates, tax, access to cash and personal priorities.
Do not assume super contributions always produce the best result. A paid-off home can reduce the amount of income needed every year.
Keep accessible money outside super
Retirement plans sometimes direct every spare dollar into super because the long-term projection looks better.
That can leave the household short of cash.
Accessible savings may be needed for:
- Home repairs.
- Dental and medical treatment.
- A replacement vehicle.
- Travel planned soon after retirement.
- Helping family.
- A period of poor investment returns.
The consultant should estimate how much cash or short-term savings you want available when work ends.
This money may earn less than a growth investment. It also reduces the chance of selling growth assets during a market fall to pay for an urgent expense.
Investment risk changes near retirement
A market fall at age 40 is unpleasant. A similar fall immediately after retirement can be harder to manage because withdrawals may have started.
If investments fall and you continue selling units to fund living costs, fewer units remain available for a later recovery.
A consultant should discuss:
- The amount held in growth investments.
- The amount held in defensive investments.
- Cash available for short-term withdrawals.
- How often the portfolio will be reviewed.
- What happens after a market decline.
Moving everything into cash can create another problem. Retirement may last decades, and inflation can reduce the buying power of cash over time.
The investment mix should reflect the time over which the money will be spent, not only the date employment ends.
Do not choose investments by recent performance
A fund that performed well last year may not repeat the result.
A consultant should compare investment options over longer periods and explain the risk taken to achieve the return.
Ask:
- What does the option invest in?
- How sharply has it fallen during weak markets?
- What fees apply?
- How does it compare with a suitable benchmark?
- Why does it suit this retirement timeframe?
A high return does not tell you whether the investment suits someone planning withdrawals in two years.
The recommendation should connect the investment to your spending plan and tolerance for losses.
Plan how retirement income will be withdrawn
Retirement planning should continue beyond the final day of work.
The consultant needs to explain how income may be drawn.
Possible arrangements include:
- Regular payments from an account-based pension.
- Lump-sum withdrawals for large expenses.
- Cash savings used alongside super.
- Investment income held outside super.
- Part-time earnings.
A withdrawal plan should account for minimum payment rules, tax treatment, investment risk and expected spending.
Taking the minimum may preserve the balance for longer, but it may not cover the household budget.
Taking large withdrawals early can provide a more active retirement. It can also leave less money for later health and housing costs.
Tax planning should be part of the conversation
Retirement income can come from accounts with different tax treatment.
The consultant should identify:
- Taxable investment income.
- Tax treatment of super withdrawals.
- Capital gains on assets sold outside super.
- Tax consequences of contribution strategies.
- When an accountant or tax agent is needed.
A financial consultant may discuss tax effects as part of a wider plan, but personal tax advice may require another qualified professional.
Ask who will check the calculations.
Do not accept a retirement strategy built around a tax claim that nobody is willing to put in writing.
Health costs deserve their own estimate
Healthcare spending can change throughout retirement.
The early years may involve ordinary insurance premiums, dental work and occasional treatment. Later years may bring home modifications, support services or aged-care costs.
A consultant should not insert one flat health figure and leave it unchanged for thirty years.
Discuss:
- Private health insurance.
- Regular medication.
- Dental and optical costs.
- Existing health conditions.
- Home modifications.
- Possible care needs.
No consultant can predict future health. They can include a reserve and test what happens when spending rises.
Couples need one household plan
Super accounts remain individually owned, but retirement spending is often shared.
Both partners should attend the planning meetings when possible.
The consultant should consider:
- Each person’s super balance.
- Different retirement dates.
- Income earned by either partner.
- Household debt.
- Insurance.
- Expected spending after one partner dies.
A plan that works only while both partners are alive is incomplete.
Some household costs fall after a death, but they rarely fall by half. Housing, utilities, insurance and maintenance can remain substantial.
Our article on planning your financial future as a couple or family can help you prepare the household figures before meeting a consultant.
Estate planning should connect with retirement planning
A will does not automatically control every superannuation death benefit.
Beneficiary nominations, fund rules and pension arrangements may affect where the money goes.
The consultant should ask about:
- Current beneficiary nominations.
- The type and expiry of each nomination.
- Reversionary pension arrangements.
- Life insurance held inside super.
- Wills and powers of attorney.
- Ownership of assets outside super.
A solicitor may need to prepare or update legal documents.
The consultant should recognise that boundary rather than pretending to replace legal advice.
Stress-test the plan
One optimistic projection is not enough.
Ask the consultant to model several versions:
- Lower investment returns.
- Higher inflation.
- Retirement two years earlier.
- Higher health spending.
- A period without voluntary contributions.
- One partner dying earlier than expected.
The result may show that the plan still works with minor spending changes.
It may reveal that one assumption carries too much weight.
For example, a plan that succeeds only with strong investment returns and no unexpected expenses has very little room for error.
The consultant should tell you which assumptions matter most.
Review the plan after major life changes
A retirement plan becomes outdated when your circumstances change.
Review it after:
- A new job.
- A redundancy.
- A divorce or separation.
- An inheritance.
- A serious illness.
- A property purchase or sale.
- A change in retirement date.
- A large market fall.
An annual review may also be sensible during the final years before retirement.
Do not pay for a yearly service without knowing what will be reviewed. Ask for a written list of work included in the fee.
How much does retirement advice cost?
Consultants and advisers may charge in different ways.
You may see:
- An hourly rate.
- A fixed planning fee.
- An implementation fee.
- An annual service fee.
- A percentage based on assets.
- Product-related commissions where permitted.
Ask for the amount in dollars.
A fee described as 1% equals $5,000 a year on $500,000. The same percentage becomes $10,000 on $1 million.
Find out what you receive for that amount.
Our article on financial consultant costs explains how to compare fixed, hourly and ongoing fees.
You can also read our comparison of fee-only and commission-based consultants before agreeing to a payment structure.
Questions to ask before hiring a consultant
- Are you registered to provide personal financial advice?
- What retirement-planning work do you regularly perform?
- Which products can you recommend?
- Are you restricted to an approved product list?
- What will the full service cost in dollars?
- Do you receive commissions or referral payments?
- Will I receive a written plan?
- Which assumptions will appear in the projections?
- How will inflation be treated?
- Will you review both partners’ finances?
- Who handles tax and legal work?
- What happens if I reject a product recommendation?
- How can I end the ongoing service?
- Who will manage my file when you are unavailable?
Take our longer checklist of questions to ask a financial consultant before hiring into the first meeting.
Warning signs during the first meeting
Walk away when the conversation includes:
- A guaranteed investment return.
- Pressure to transfer super immediately.
- A recommendation before your finances are reviewed.
- Fees that cannot be explained in dollars.
- Requests for banking or government passwords.
- Claims that one product suits every client.
- Refusal to provide registration details.
- Pressure to sign before reading the documents.
A retirement plan can involve decades of savings.
You are allowed to take the proposal home, ask questions and obtain another opinion.
What should the written plan contain?
A useful retirement plan should state:
- Your proposed retirement date.
- Expected household spending.
- Current assets and debts.
- Projected income sources.
- Super contribution assumptions.
- Investment return and inflation assumptions.
- Fees and tax assumptions.
- Insurance considerations.
- Withdrawal strategy.
- Risks and alternative scenarios.
- Actions required now.
- Review dates.
It should also explain what falls outside the advice.
The plan should be understandable without the consultant sitting beside you.
A twelve-month retirement-planning schedule
Month one: gather the numbers
- Collect super statements.
- List debts and savings.
- Record household spending.
- Check insurance and beneficiary details.
Months two and three: define the retirement
- Choose a preferred retirement age.
- Estimate annual spending.
- Discuss housing plans.
- Identify large future expenses.
Months four to six: run the projections
- Model current contributions.
- Test extra contributions.
- Compare earlier and later retirement dates.
- Use lower-return and higher-inflation scenarios.
Months seven to nine: review the structure
- Compare super fees and investment options.
- Review debt repayment.
- Build accessible savings.
- Check insurance before transferring any account.
Months ten to twelve: complete the paperwork
- Update beneficiary nominations.
- Arrange approved contribution changes.
- Update wills and legal documents where needed.
- Set the next review date.
Starting late does not make planning pointless
Someone in their late fifties may feel that the best years for saving have already passed.
Time is shorter, so the available choices may be narrower. The plan can still improve.
Possible changes include:
- Increasing contributions where affordable.
- Reducing avoidable fees.
- Clearing expensive debt.
- Working slightly longer.
- Changing the retirement budget.
- Building cash outside super.
- Reviewing housing plans.
The consultant should show the effect of each option in dollars.
Do not accept shame as a planning method. The current numbers are the starting point.
The consultant should leave you with decisions, not fear
Retirement planning can uncover a shortfall.
That does not automatically mean retirement will be bleak or impossible.
A good consultant breaks the problem into choices you can evaluate. They explain which change has the largest effect and which assumptions remain uncertain.
The plan should tell you what to do next month, not merely what balance you may have in fifteen years.
Start with spending, housing, debt and retirement timing. Review super after those decisions are clear. Test the plan against lower returns and higher costs.
Then choose a consultant whose authority, experience and fees you understand.
The later you begin, the fewer years remain for adjustments. Starting today still gives the plan more time than starting next year.