Plan your path to a brighter retirement

5 August 2025

Retirement is one of life’s major milestones. It’s a time to enjoy the rewards of your working years with more freedom to travel, pursue hobbies, spend time with loved ones, and live life at your own pace.

Achieving this sense of freedom and peace of mind in retirement doesn’t happen by accident. It takes careful planning.

We understand the financial and psychological uncertainty many pre-retirees experience as they approach this major life transition. It’s natural to ask: Will I have enough? What will life look like without work? What if I need to retire earlier than expected?

Financially, emotionally and practically, preparing for retirement is about more than just setting a date. It’s about building the confidence to take that step, knowing you're ready for what comes next.

Australians are living longer – planning matters more

Today’s retirees are healthier, more active and living longer than ever. According to the Australian Bureau of Statistics, Australians aged 60 can expect to live, on average, another 24.2 years for men and 27.1 years for women¹.

That means many Australians will spend almost as many years in retirement as they did working. For some of us, retirement could last 30 years, making superannuation a vital source of income over the long term.

This extended life expectancy is a gift, but it also creates financial complexity. Your savings and super need to last across multiple decades, while also withstanding market volatility, rising living costs, unexpected health issues and changing personal circumstances.

Planning for more than just your finances

Brighter Super is helping members prepare for both the financial and emotional realities of retirement. That support is critical for wellbeing, especially during times of uncertainty.

Many Australians retire earlier than planned, often due to health concerns, redundancy or family responsibilities. And for those who’ve worked in the same job or industry for decades, stepping away from work can bring a sudden shift in identity.

According to the 2024 Retirement Income Report from Brighter Super and Investment Trends, 47% of Australian pre-retirees feel unprepared for retirement, with confidence at a 10-year low. Four in five retirees said they want more support in planning, investing and building their super.

Because without the right preparation – even with a healthy super balance – retirement may not deliver the certainty and comfort you’ve worked hard for.

Understand where you stand today

For most Australians, superannuation is their largest financial asset after the family home. It plays a central role in shaping retirement outcomes. That’s why understanding your current position is a vital first step in planning for the future.

When reviewing your super, it’s important to consider the following key elements:

• How your money is invested
• The contributions being made by you and your employer
• The fees being deducted
• Your insurance cover and what it costs
• Your account’s investment performance over time

Your Annual Statement provides a detailed overview of your account. For a real-time snapshot, log in to Member Online or use our mobile app to generate your current Member Report.

At our retirement seminars and webinars, members often tell us they feel more confident when they can answer questions such as:

• How much do I need to retire?
• How can I improve my retirement outcome?
• How much income will my super provide?
• What will I be entitled to from the Government Age Pension?

Having clear answers turns uncertainty into action.

Picture your future lifestyle

Retirement means different things to different people. Your lifestyle choices play a big role in determining how much income you’ll need.

The Association of Superannuation Funds of Australia (ASFA) Retirement Standard is a widely recognised benchmark that estimates the income required for various retirement lifestyles.

ASFA suggests the following annual incomes are needed for a comfortable retirement (as at March 2025)²:

• $73,875 for a couple
• $52,383 for a single person

Modest lifestyles require less income, but they may have to sacrifice flexibility and quality of life.

ASFA also provides guidance on the super balances typically needed at age 67 to support a comfortable lifestyle, assuming the retiree receives a part Government Age Pension and draws down their capital:

• $690,000 super balance for a couple
• $595,000 super balance for a single person

More modest lifestyles require lower super balances, but they may also come with trade-offs in flexibility, leisure and overall quality of life.

Everyone’s situation is different. The amount you’ll need will depend on your personal circumstances, such as your health, housing situation, family commitments, and how you want to spend your time.

That’s why it’s important to define your ideal lifestyle – and build your plan around it.

→ Learn more: ASFA Retirement Standard

Boost your super savings

Your 50s and 60s can be a powerful time to build your super – whether you’re catching up, changing careers, or simply planning for more flexibility in retirement.

Even small changes now can make a meaningful difference later.

Understanding which contributions you’re eligible to make, and how they affect your tax, Age Pension status and long-term balance, can help you make informed choices.

There are two main types of contributions you can make to grow your super:

1. Concessional contributions – made from before-tax money.

• Employer contributions, including Superannuation Guarantee (SG) contributions, currently at 12% of salary per year (2025/26) – some industry or individual arrangements may be higher.
• Money put into your super through salary sacrifice.
• Any personal contributions you claim as a tax deduction.

The annual concessional cap is currently $30,000 (2025/26). If you have unused cap space from previous years, you may be able to contribute more under the carry-forward rules (see our contribution caps info sheet).

2. Non-concessional contributions – using money that has already been taxed.

• Personal contributions you’re not claiming a tax deduction for.
• Spouse contributions.
• Government co-contributions.
• Downsizer contributions (up to $300,000 per person if you sell your home after age 55).

Non-concessional contributions are capped at $120,000 (2025/26), or up to $360,000 over three years if you’re eligible for the bring-forward rule (see our contribution caps info sheet).

Individuals with a Total Superannuation Balance of $2.0 million or more are not eligible to make non-concessional contributions.

→ Learn more: Ways to grow your super

Invest for the long term

Super is designed to be a long-term investment – and that doesn’t stop when you retire.

Even after you begin drawing down your super, the remaining balance continues to be invested. That means your investment strategy still plays a vital role in supporting your income throughout retirement.

Brighter Super offers a range of investment options to suit different needs and preferences:

• MySuper – our default option, offering a balanced mix of growth and defensive assets.
• Ready-made Multi-manager options – diversified investment across a range of asset classes.
• Single-sector options – for members who prefer to tailor their strategy by choosing individual asset types.

When reviewing or adjusting your investments, consider:

• When you plan to retire and how long you think you’ll be in retirement
• Your financial and lifestyle goals
• Your income needs and timing
• Your comfort with risk and market changes
• How inflation may affect your buying power

Conservative options may feel safer but may not grow enough to last 20–30 years. Growth options may offer higher returns but come with more volatility. Striking the right balance is key, and financial advice can help.

You can change your investment options at any time through Member Online or by contacting us. We encourage members to avoid making rushed decisions during periods of market volatility – long-term planning is what matters most.

→ Learn more: our guide to your super investment options

Consider transitioning into retirement

Retirement doesn’t have to happen all at once. Many people choose to ease into it gradually – by reducing their work hours, taking on more flexible roles, or adjusting their career pace.

Brighter Super’s Transition to Retirement (TTR) Pension account is designed to support this phase of life.

• Access up to 10% of your super balance each year while still working.
• Supplement your income if you reduce your work hours.
• Use your super to help pay down debt or reduce your tax.
• Keep building your super through employer contributions.

To be eligible, you must be aged 60 or over, still in the workforce, and have at least $20,000 in your super account.

This flexible and practical strategy can help you maintain your lifestyle while accommodating other priorities as you ease into full retirement. That might include more family time, part-time study or reducing stress.

→ Learn more: Transition to retirement

Don’t fall into the ‘accumulation trap’

One of the most important steps in preparing for retirement is moving your super from an Accumulation account to a Pension account once you’ve stopped working.

A common and costly mistake that many retirees make is staying in their Accumulation account after they’ve stopped working. This is known as the ‘accumulation trap’ – and sometimes in the context of superannuation as the ‘apathy tax’.

Accumulation accounts are designed for building super while you’re working. But once you retire, they no longer offer the same tax advantages. If you don’t switch to a Pension account, you could end up paying 15% tax on your investment earnings, even though you may now be eligible for a tax-free income stream.

It’s a simple oversight, but one that can cost thousands over time. By moving to a Pension account, you can:

• Enjoy tax-free investment earnings
• Receive tax-free income payments (from age 60)
• Access your money with flexibility, including lump sum withdrawals

This one smart move can significantly improve your financial position in retirement.

Things to consider before opening a Pension account

While Pension accounts offer attractive tax advantages, they may not be the best fit for everyone. There are some important factors to keep in mind:

• Minimum withdrawals: Once you open a Pension account, you’re required to withdraw a minimum amount each financial year, based on your age. This could reduce your balance faster than expected, especially in volatile markets.
• Longevity risk: Drawing down on your super means your retirement savings won’t last forever. It’s worth planning carefully to make sure your money can support you for the long haul.
• Centrelink impacts: A Pension account balance counts towards both the income and assets tests for Centrelink entitlements. This could affect your eligibility for the Age Pension or other government benefits.

At Brighter Super, we’re here to help you weigh up the potential benefits and drawbacks so you can make the most of what you’ve worked hard to save – and retire with confidence.

→ Learn more: Brighter Super Pension account

Make retirement easier with the Retire Easy Pension

Managing your savings in retirement can feel complex and overwhelming, especially when trying to balance income needs, investment choices and long-term goals.

That’s why Brighter Super recently created Retire Easy Pension – a simple, smart way to take the guesswork out of managing your income in retirement. It reduces complexity, provides regular payments, and supports long-term financial confidence. All of this is delivered with minimal effort on your part.

Retire Easy Pension provides a set of pre-selected investment and payment settings designed to suit most retirees. It’s built on three key principles:

• Regular automated income – set to meet the Government’s minimum pension requirements
• Automatic investment strategy – across short-, medium- and long-term strategies, with annual rebalancing.
• Easy setup – just tick a box when setting up your Pension account to get started.

It’s ideal for members who want a dependable ‘set and forget’ option that still manages risk and adapts over time.

→ Learn more: Retire Easy Pension

Unlock your Retirement Reward

When you open a Pension account with Brighter Super, you may be eligible for a Retirement Reward – a one-off bonus between $1,600 and $16,000, depending on your balance.

This reward returns part of the tax provision set aside in your Accumulation or TTR Pension account. Once you move to a Pension account, that tax no longer applies – and we pass the benefit on to you.

It’s our way of helping you get more from your retirement and making the transition even more worthwhile.

→ Learn more: Retirement Reward

Understand your Age Pension options

Even with a strong super balance, many Australians rely on the Government Age Pension. It can provide a valuable source of income, either on its own or alongside your super.

To be eligible, you must be 67 years or older, meet residency requirements, and pass both an income test and an assets test. Age Pension eligibility is updated regularly on the Services Australia website.

Don’t wait to understand your Age Pension options. It’s worth preparing well before you turn 67, as payments aren’t back paid and delays could mean missing out on thousands of dollars in benefits.

Even if you don’t qualify for the full Age Pension, you may still be eligible for a Pensioner Concession Card, which can provide discounts on health care, prescriptions and utilities.

It’s also important to note that your super income stream counts towards both the income and assets tests. That’s why it’s so valuable to get advice about how to structure your super withdrawals effectively – it can impact both your Age Pension eligibility and your overall retirement income.

→ Learn more: Age Pension (Services Australia website)

Get advice and support every step of the way

Retirement planning can feel overwhelming, but you don’t have to do it alone. Brighter Super offers personalised support to guide you at every stage. 

Here’s how we can support you:

• Retirement Health Check – a 45-minute appointment with one of our financial advisers over the phone to assess your retirement readiness.
• Personal advice – a deeper analysis of your financial situation and future goals.
• Seminars and webinars – in-person events at workplaces and communities, and webinars using Zoom.
• Online learning tools and calculators – to help you explore your options and model different scenarios.

Some advice and support services are covered by your administration fee. If you need more detailed personal advice, there may be an extra cost – and in some cases, this can be deducted from your super balance.

We’re proud to have been recognised with the SuperRatings 2025 Member Education Award, celebrating the depth and quality of the education we provide to our members.

Your next steps: get retirement ready

Thinking about your retirement is an important first step. Here are some practical actions you can take next:

• Use our retirement calculators to check you're on track.
• Register for Member Online, if you haven’t already.
• Log in to your account where you can complete tasks such as:
• See if you can contribute more without exceeding your cap.
• Review your investment options.
• Consolidate any lost or unclaimed super.
• Update your beneficiary nominations.
• Check your insurance cover.
• Explore salary sacrifice.
• Book a Retirement Health Check or speak to one of our financial advisers.

Why choose Brighter Super?

Brighter Super is 100% member-owned – we work for you, not shareholders. We are dedicated to being right by your side, guiding members to retire confidently, with a commitment to solid performance, low fees, personal support and advice.

Since 1965, we have been a reliable and trusted provider of investment, advice and insurance services. Backed by our strong Queensland heritage and award-winning member education program³, we’re proud to help our members retire with confidence.

Ready to retire with confidence?

For more information, tools and guidance, explore the following resources:

• Your Brighter Retirement Guide – on our Retire your worries page
• Considering Retirement info sheet
• Brighter Super and Investment Trends 2024 Retirement Income Report

When you feel ready to plan your retirement and take control of your future, call us on 1800 444 396 or visit brightersuper.com.au/retirement.

Your brighter tomorrow starts with the actions you take today.