You’re 57. Or 61. Or 63.
You’ve been thinking about retirement for years now. Maybe decades.
But every time you get close to making a decision, the doubt creeps in.
“Am I really ready?”
“What if I’ve missed something?”
“Everyone else seems so confident about their retirement plan. Why don’t I?”
Here’s the truth: Most Balmain pre-retirees I meet aren’t “not ready” to retire. They just don’t know how to assess their readiness properly.
They’re using the wrong measuring stick. Comparing themselves to generic internet advice. Worrying about things that don’t actually matter while ignoring the things that do.
So I created this test.
Ten questions that actually determine whether you’re ready to retire. Not whether you’ve hit some arbitrary super balance. Not whether you match some national average. But whether YOU are ready for YOUR retirement in Balmain.
Answer these honestly. No one’s watching. No one’s judging.
By the end, you’ll know exactly where you stand – and what needs to happen next.
For each question, I’ll give you:
This isn’t a pass/fail test. It’s a reality check.
Some questions matter more than others. Some might not apply to you at all. That’s fine.
The goal is clarity, not a score.
Not roughly. Not “about $4,000.” Exactly.
Can you tell me right now what you spent last month on:
You can’t plan retirement income if you don’t know your retirement expenses.
Most people drastically underestimate or overestimate their costs. I’ve seen people retire thinking they need $70,000/year when they actually spend $52,000. I’ve also seen the opposite – people thinking they’re frugal who are actually spending $85,000.
Both scenarios cause problems. Underestimating means running short. Overestimating means working years longer than necessary.
You can pull up your bank statements and show me your last three months of spending, broken down by category, within 10 minutes.
You know what percentage goes to essentials vs discretionary spending.
You’ve thought about what changes in retirement (no more work lunches, commuting costs, professional wardrobe, but potentially more travel and entertainment).
Start tracking now. Use your banking app, a spreadsheet, or even a notebook.
Track for three months minimum. Six months is better.
Be honest. Don’t change your behavior just because you’re tracking – you need real data.
Simple question. Critical answer.
This is the single biggest factor in retirement readiness for Balmain locals.
A mortgage-free home means you need $20,000-$30,000 LESS per year in retirement income.
Over 25 years, that’s $500,000-$750,000 difference in super required.
Plus, your home doesn’t count in the Age Pension assets test. It’s an invisible asset that dramatically improves your retirement position.
“The $1 Million Retirement Myth”
Your mortgage is paid off, OR you have a clear plan to pay it off within 2-3 years using super, redundancy, or accelerated payments.
You’re not planning to retire while still carrying a $300,000 mortgage with 10 years remaining.
Option 1: Delay retirement until mortgage is cleared.
Option 2: Make accelerated payments now using salary sacrifice or lump sums.
Option 3: Use accessible super (if over 60) to clear the debt at retirement.
Option 4: Consider downsizing to a cheaper property and banking the difference.
Don’t ignore this one. Housing costs in retirement will destroy even a decent super balance.
Not “I think I’ll get something.” Not “probably nothing because we own our home.”
Have you actually calculated it?
Even a part Age Pension is worth $300,000-$500,000 over a 25-year retirement.
Most Balmain couples with $600,000-$800,000 in super still qualify for at least a partial pension.
Ignoring this in your planning means you’re either:
You’ve used the Services Australia Age Pension calculator within the last 6 months.
You know approximately what you’ll receive (full, part, or zero).
You understand how the assets test works and how your home equity, super, and other investments affect your entitlement.
“How the Age Pension Actually Works”
Go to servicesaustralia.gov.au right now and use the Age Pension calculator.
It takes 10 minutes.
Input your actual numbers – super balance, other investments, whether you own your home.
The result might shock you (in a good way).
Quick test: Which number do you know off the top of your head?
If you answered A, you’re thinking about retirement wrong.
Retirement isn’t about having a pile of money. It’s about having enough income to live on.
Obsessing over your super balance is like obsessing over your employer’s company valuation. It’s interesting, but irrelevant to your day-to-day life.
What matters is: Can your super generate $40,000/year? $50,000? $60,000?
That’s the number that determines whether you can retire.
Balmain Financial Adviser: How Much Do You Need to Retire?
You can tell me approximately how much annual income your super will generate using a sustainable withdrawal strategy.
You understand that $600,000 in super generates roughly $30,000-$36,000/year.
You know your total retirement income = super drawdown + Age Pension + any other sources.
Use this rough formula:
Super balance × 5% = Sustainable annual income
Example: $650,000 × 5% = $32,500/year
Then add your Age Pension entitlement.
That’s your total retirement income.
Does it cover your costs from Question 1?
Not financially. Practically.
What will you do on Tuesday at 10am?
What will give you purpose when work is gone?
Financial readiness is only half the equation.
I’ve seen dozens of Balmain locals retire with perfect financial plans, only to become miserable within six months because they had no idea what to do with themselves.
Work provides structure, social connection, purpose, and identity. When it’s gone, you need something to replace it.
This isn’t touchy-feely stuff. It’s critical.
You have specific plans for how you’ll spend your time:
You’ve talked to friends who’ve already retired about how they structure their days.
Start building your “retirement life” now, before you retire.
Take up that hobby you’ve been putting off.
Strengthen friendships outside work.
Volunteer one Saturday per month.
Have lunch with three people who’ve already retired and ask them about the reality (not the Instagram version).
If you’re in a relationship, this question is non-negotiable.
Have you both actually agreed on when you’re retiring? Not vaguely discussed it – actually agreed?
Retirement timing disagreements destroy relationships.
One partner retires at 62 and expects to travel. The other wants to work until 67 and isn’t ready to spend money yet.
One partner retires and is home all day. The other is still working and suddenly has zero personal space.
These aren’t small issues. They’re marriage-enders.
You’ve had explicit conversations about:
You’re on the same page. Not “we’ll figure it out” – actually aligned.
Have the conversation. Now.
Don’t avoid it because it’s uncomfortable.
Book a dinner out (not at home with distractions) and actually talk through:
If you can’t align, consider couples counseling or speaking with a financial planner together.
If you’re retiring in 3 years, is your super still 100% in high-growth assets?
If you’re retiring in 15 years, is your super sitting in cash earning nothing?
Your super investment strategy should match your retirement timeline.
If you’re retiring in 2-5 years and your super is heavily weighted toward volatile growth assets, a market crash could delay your retirement by years.
If you’re 52 and your super is in ultra-conservative investments earning 2%, you’re missing out on a decade of compounding growth.
You know what your super is invested in (not just the fund name, but the actual allocation).
Your investment strategy matches your timeline:
Log into your super fund website today.
Find out exactly what you’re invested in.
If it doesn’t match your timeline, change it.
Most super funds let you switch investment options online in minutes.
Not just private health insurance premiums. Actual healthcare costs.
GP visits. Specialists. Medications. Dental. Physio. The stuff that adds up.
Healthcare costs increase significantly in retirement, especially from your late 60s onward.
Most people budget for health insurance but forget about:
For Balmain locals, expect $4,000-$6,000/year in healthcare costs beyond insurance premiums.
You’ve budgeted $5,000-$7,000/year total for healthcare in early retirement (insurance + out-of-pocket).
You understand this will likely increase to $8,000-$12,000/year in your 70s and 80s.
You’ve got a buffer in your retirement income for unexpected medical costs.
Add a healthcare line item to your retirement budget.
Start with $5,000/year beyond insurance premiums.
Build a separate emergency fund for major health events ($10,000-$20,000).
Can you access your super at 60 but not Age Pension until 67?
How will you cover those gap years?
Many Balmain locals want to retire at 60-62. But the Age Pension doesn’t kick in until 67.
That’s 5-7 years of living entirely off super (or other savings).
If you haven’t planned for this, you might:
You’ve run the numbers on retiring before Age Pension age.
You know that drawing $45,000/year from super for 7 years means using $315,000 of your super balance before Age Pension kicks in.
You’ve either:
Model it out:
Current super balance: $______
Annual drawdown (60-67): $______
Total drawn over gap years: $______ (multiply annual by number of years)
Remaining super at 67: $______
Can you live on that remaining balance + Age Pension from 67-90+?
Not a vague idea. Not “we’ve talked about it.”
An actual written plan.
Retirement without a plan is just unemployment with a positive spin.
Every successful retirement I’ve seen has a plan. Not necessarily a 50-page financial document. But something written down that includes:
Writing it down forces clarity. It turns anxiety into action.
You have a document (even just one page) that outlines:
You can show this plan to someone and they’d understand your retirement strategy immediately.
Stop right now and create a one-page retirement plan.
It doesn’t need to be perfect. It just needs to exist.
Write down:
That’s it. You now have a plan.
Here’s how to interpret your answers:
You’re in great shape.
You probably just need validation and maybe some fine-tuning around tax optimization, Centrelink positioning, or investment strategy.
You could likely retire within 12 months if you wanted to.
You’re close, but there are gaps.
The good news: These are usually fixable gaps. You’re not starting from scratch.
Focus on the questions where your answer was concerning. Tackle them one at a time over the next 6-12 months.
You could be retirement-ready within 1-2 years.
You’ve got work to do.
But don’t panic. This isn’t bad news – it’s clarity.
You now know exactly what needs to happen before you can retire confidently.
Start with Questions 1, 2, and 3 (costs, housing, Age Pension). These are foundational.
Once you’ve nailed those, the rest becomes much easier.
If you’re short on time and can only focus on a few questions, prioritize these:
Question 2 (Mortgage): This single factor determines whether you need $600k or $1M in super.
Question 1 (Costs): You can’t plan income without knowing expenses.
Question 3 (Age Pension): Ignoring this costs you hundreds of thousands of dollars.
Question 4 (Income vs Balance): Shifting your thinking from net worth to income changes everything.
Get these four right, and you’re 80% of the way there.
After helping hundreds of Inner West locals through this process, here are the patterns I see:
“5 Signs You’re Ready to Retire”
They’re obsessed with hitting $1 million when they actually only need $650,000 because they own their home.
They assume they won’t get any, miss out on $15,000-$25,000/year, and work 3-5 years longer than necessary.
They nail the financial side but completely forget about the lifestyle side. Six months into retirement, they’re bored and depressed.
They assume they’re aligned. They’re not. Conflict erupts the moment one person retires.
Don’t make these mistakes.
Retirement readiness isn’t about ticking every single box perfectly.
It’s about having clarity on the things that actually matter:
If you’ve got those four dialed in, the rest is just details.
But if you’re fuzzy on any of them, you’re not ready – no matter how big your super balance is.
Use this test to identify your gaps. Then fill them.
That’s how you move from “I think I’m ready” to “I know I’m ready.”
Done the test and realized you need help filling the gaps?
The One Page Financial Plan gives you a complete retirement readiness assessment tailored to your Balmain lifestyle.
For $660 (inc GST), you’ll get:
✓ A clear answer on whether you’re ready to retire
✓ Your exact retirement income (super + Age Pension + other sources)
✓ What needs to change if you’re not quite there yet
✓ A one-page roadmap for your next steps
✓ 100% satisfaction guaranteed
📧 Email: adam@suncow.com.au
📞 Phone: 0418 785 200
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Information provided by Suncow Wealth is general in nature and does not take into consideration your personal financial situation. It is for educational purposes only and does not constitute formal financial advice. Remember, the value of any investment can go down as well as up. Before acting, you should consider seeking independent personal financial advice that is tailored to your needs. Suncow Wealth Pty Ltd is a Corporate Representative No.441116 of AFSL 342766.