Now I have turned 55, I have an increased interest in superannuation and retirement if I want to meet my goal of retiring at age 60. In Australia, if you are able to support yourself, you can gain access to your superannuation and begin retirement. Likewise, you can also transition to retirement and reduce your working hours and move to part-time employment.

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. 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 hold 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 and I just need to finance the outgoings in my retirement. I want to enjoy retirement just like everyone and that will include travel, I have to travel cheaply – that’s the challenge.

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. 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. That might be a little harder to plan, who knows where I will be physically in 8 years time, I have to keep fit and healthy. 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. That is the challenge, the government changes.