Hello Fellow Investors,
Ever wondered about the different types of retirement, where you fit in, and how a financial planner can help?
Retirement is a goal for most working Australians, but the way people retire – and the support they need – can look very different from person to person.
3 Types of Retirement
From my experience in the financial planning industry, most retirees broadly fall into one of three categories, each with different needs, timelines, and planning considerations.
1. Age Pension Retirees
The first type of retiree is the Age Pension retiree. These individuals typically retire at the age they can access the Age Pension (currently 67), and rely primarily on Centrelink payments to fund their lifestyle.
Age Pension retirees generally:
- Live modestly
- Have limited superannuation and personal assets
- Must remain within strict Centrelink asset and income test thresholds
Because of their limited financial complexity, many Age Pension retirees do not require ongoing guidance and advice from a financial planner.
2. Medium‑Means Retirees
The second group consists of the Medium‑Means retirees. These retirees typically stop full‑time work around age 65 and have a combination of superannuation and personal assets to support their retirement.
This group often benefits the most from the professional financial advice. A financial planner can help by:
- Structuring assets tax‑effectively, both during retirement and for estate planning
- Setting up and managing superannuation pensions to ensure investments are appropriate and sustainable
- Maximising Centrelink entitlements through effective structuring and strategy
- Developing a clear retirement income strategy to help ensure funds last as long as needed
With the right planning, medium‑means retirees can significantly improve both their lifestyle and long‑term financial security.
3. High‑Means Retirees
The final group is the High‑Means retirees.
These individuals often retire earlier – commonly around the age of 60 – and have sufficient superannuation and personal assets to fully self‑fund their retirement without relying on the Age Pension.
Despite their strong financial position, high‑means retirees still benefit greatly from advice in areas such as:
- Tax‑effective structuring of assets and estate planning
- Investment strategy management, ensuring portfolios remain appropriately invested and not overly conservative. (Even large super balances can be at risk of erosion if left entirely in cash earning 3–4% per annum.)
- Minimising tax in retirement, including pension and investment income strategies
- Asset protection and intergenerational planning, particularly for children and future beneficiaries
For this group, advice is less about affordability and more about efficiency, protection, and longevity.
Final Thoughts on Retirement Types
These categories are, of course, generalisations. No matter where you fit within the 3 types of retirement, everybody’s financial and personal circumstance is unique. The right strategy depends on taking your personal goals, assets, lifestyle expectations, and family situation into account.
If you’d like to understand how a financial planner could help you personally, you may wish to book a meeting with one of our Brisbane‑based financial planners to explore your options.
Joshua Napier
Financial Planner
Fleming Financial Planning