Key Takeaways
- It’s never too late to start planning for retirement—clarity comes from action
- Understand how much you’ll need based on your lifestyle goals
- Review your super, debts, assets and income sources early
- Small business owners and tradies have extra options like selling a business or property
- Getting advice from a professional can turn overwhelm into a confident plan
If the idea of retirement feels more like a question mark than a destination, you’re not alone. Many SME owners and tradies spend years focused on running the business and providing for their families—only to realise they haven’t given serious thought to what life might look like after work.
The good news? It’s never too late to start planning. Whether you’re five years away or just starting to think about retirement, there are clear steps you can take to get on track and improve your financial future.
Step 1: Define What Retirement Looks Like for You
Everyone’s ideal retirement is different. Some want to travel the country in a caravan. Others want to stay close to grandkids, start a hobby business, or work part-time on their terms.
Think about:
- When you’d ideally like to retire
- What lifestyle you want to maintain
- Whether you’ll downsize or stay in your current home
- How active your retirement will be—travel, social activities, hobbies
These decisions influence how much money you’ll need and what sources of income to plan around.
Step 2: Understand How Much You’ll Need
According to ASFA (the Association of Superannuation Funds of Australia), a couple aiming for a comfortable retirement will need around $70,000 per year. That includes household bills, healthcare, travel, entertainment and more.
If you don’t know how much you currently spend each year, start there. Review bank statements or use a budgeting tool to calculate your living costs. Then project what might change in retirement—fewer business expenses, more leisure activities, no mortgage, or higher medical bills.
Once you know your target retirement income, you can compare it with your expected income sources to identify any gaps.
Step 3: Review Your Superannuation
Super is one of the most tax-effective ways to save for retirement, yet many small business owners have neglected it while reinvesting in their business or property.
Take time to:
- Check your current super balance
- Consolidate multiple accounts (if any)
- Understand how your super is invested
- Review recent returns, fees and insurance
- Consider voluntary contributions or salary sacrificing
Even small additional contributions can make a big difference over time thanks to compound growth and tax savings.
Step 4: Assess Your Business and Assets
If you’re a business owner or tradie, your exit plan could be a major part of your retirement funding. Ask yourself:
- Is your business something you could sell?
- Can it operate without you?
- Would a team member, competitor or family member buy it?
You may also have assets like tools, vehicles, equipment, or commercial property that could be sold or leased to generate income.
Review your property portfolio and personal investments too—rental income, shares, or savings may all form part of your retirement picture.
Step 5: Reduce Debts Strategically
Heading into retirement with fewer debts means you’ll need less income to maintain your lifestyle.
Focus on paying off high-interest debt like credit cards or personal loans first. Then set a plan to reduce or eliminate business loans or your mortgage by the time you plan to retire.
Be careful not to drain all your savings or super to pay off debt without considering the broader financial picture—sometimes keeping a loan with manageable repayments and investing elsewhere may work better.
Step 6: Understand Government Entitlements
Even if you don’t qualify for the full Age Pension, you may still be eligible for partial payments, the Commonwealth Seniors Health Card, or other benefits.
Eligibility depends on your age, income, and assets. Keeping an eye on thresholds and planning your finances accordingly can maximise your entitlements.
Step 7: Get Personalised Advice
Retirement planning doesn’t need to be overwhelming. A good financial advisor or accountant can help you:
- Understand your current position
- Model different retirement scenarios
- Maximise tax savings through super and investments
- Plan a business exit that works for you
The earlier you get advice, the more options you’ll have—and the better you’ll sleep at night knowing you’ve got a plan in place.
Final Thoughts
You don’t have to be rich to retire well. What you do need is a clear plan that reflects your lifestyle goals, financial reality, and the unique opportunities that come with being a small business owner or tradie.
Start by understanding where you stand today, then take small steps to improve your position over time. The sooner you start, the more freedom, flexibility and confidence you’ll have when it’s time to put the tools down for good.
