When should I start retirement planning? (hint: it’s sooner than you think)

Retirement might feel like a distant dot on the horizon—especially if you’re in your 30s or 40s—but here’s the truth: the earlier you start planning, the easier it is to achieve the lifestyle you want when work becomes optional.

At McMillans, we work with individuals and families across Gippsland to develop personalised retirement plans that grow with them. Whether you’re years away or retirement is just around the corner, it’s never too early—or too late—to take action.

Why early retirement planning matters

The main advantage of planning early? Time. Thanks to the magic of compounding, even modest regular contributions can grow significantly over time.

Let’s say you invest $5,000 annually from age 30 with a 7% average return. By 60, that’s grown to over $500,000. Wait until age 40 to start, and you’ll have less than half that amount.

Early planning gives you more options, more flexibility, and more peace of mind.

Key questions to ask yourself

Before diving into investment options or super balances, ask:

  • At what age would I like to retire?

  • What kind of lifestyle do I want?

  • Will I still have a mortgage or dependants at retirement?

  • What income will I need per year?

  • Do I want to travel? Downsize? Start a business?

These answers shape the kind of retirement plan that’s right for you.

Superannuation: your retirement powerhouse

Super remains one of the most tax-effective ways to build wealth for retirement. Contributions (especially salary sacrifice or concessional contributions) can reduce your taxable income now, while building a solid nest egg for later.

Things to consider:

  • Are you making enough super contributions?

  • Could salary sacrificing boost your balance?

  • Do you know your fund’s fees, insurance and investment performance?

  • Would a Self-Managed Super Fund (SMSF) offer more control?

We can help you review your options and develop a strategy tailored to your income, stage of life and goals.

What if I’m in my 50s or 60s?

It’s not too late. In fact, the years leading up to retirement can be some of the most powerful in terms of planning.

In your 50s or 60s, we’ll help you:

  • Review your super balance and contribution opportunities

  • Maximise tax benefits before retirement

  • Create an income plan that includes super, savings, investments and government benefits

  • Consider transition-to-retirement strategies

  • Plan for aged care, healthcare and estate considerations

These years are about fine-tuning, optimising, and ensuring security.

Don’t forget about lifestyle and non-financial goals

Retirement planning isn’t just numbers on a page. It’s about designing a future you’re excited about. That could mean:

  • More time with family

  • Volunteering or part-time work

  • Hobbies or travel

  • Sea-change or tree-change plans

We’ll help you map your finances to support the life you want—whether that means scaling down or living it up.

What a retirement plan should include

A well-rounded retirement plan considers:

At McMillans, we take a holistic approach, ensuring every piece of the puzzle fits together.

Real life, real advice

One of our clients, a Gippsland couple in their early 50s, came to us unsure if they were “behind” on their planning. We reviewed their super, suggested a salary sacrifice strategy, restructured their investments for better tax outcomes, and created a roadmap that had them retiring comfortably at 60. They didn’t just avoid stress—they gained confidence.

SuperannuationCristy Houghton