Now I have turned 50, I have an increased interest in superannuation and retirement if I want to meet my goal of retiring at age 60 then I really need to get organised. The years from the age 50 to 60 are the decade to really prepare for retirement, this is the decade to get going.

The challenge is now to manage the final decade of my career to retire debt free with more than adequate funds in my retirement account to give me a 20 year retirement account beginning at 60 – that’s assuming I live to age 80. Naturally I wish to live above the poverty line, there is no value retiring early and then having to live a life of poverty unable to experience life. In such a scenario, I would be better off remaining in the workforce because at least then I would maintain a degree of financial freedom.

As an individual with no net debt, the critical criteria is to remain debt free during that period. For me, that’s not going to happen as I need to upgrade my motor vehicle. So I would expect to undertake a 3 year motor vehicle loan during that period. Fortunately, I have no mortgage as my primary residence is owned so I just need to finance the outgoings in my retirement. Paying off your mortgage before retirement is important otherwise a lump sum needs to be withdrawn to pay that debt down first.

I won’t qualify for a pensioner card until I at least turn 65, that should be 5 years into my retirement so I won’t receive discounts on state government charges such as water, electricity and rates until then. That makes a difference, a reduction in those outgoings is important to the longevity of your retirement funds. That is a downside of retiring when you can get your retirement funds, the early years are going to be a little more expensive than the later years – still, one has to enjoy the early years of retirement.

Really, the final decade of my career should be to maximise my earning potential, remain largely debt free during that period and to ensure I make maximum contributions to my retirement account during that period. This will also include maximising employer contributions in this period, that will require full employment and minimising sick leave. Finally, reducing income tax along with maximising tax efficient investments during the decade under the continuing onslaught of federal government changes to the superannuation system.