Helen had worked for the same construction company for roughly 30 years. She was 69 years old, had just returned from an overseas family funeral, and was called into a meeting with her manager. Her office role had been made redundant. Retirement had arrived — not on her terms, but on the company's. Today, at 71, she lives on nine acres in regional New South Wales, grows vegetables she donates to a local community centre, and says the transition has been calmer than she ever expected. Getting there, though, was far from straightforward.
When Redundancy Forces the Retirement Decision
For years, Helen's retirement was a moving target. She had originally planned to stop working at 55, but financial anxiety kept pushing that date forward. She gradually reduced her hours — from five days a week to four, then to three — unwilling to make an abrupt exit. Remote work during the COVID-19 pandemic extended her working life further still. In the end, the decision was made for her.
Her redundancy payout stung in ways she hadn't anticipated. Although she had been with the company for around 30 years, her contract recognised only 10 of those years for payout purposes. Because she was past retirement age, the payment was also taxed at a higher rate. After tax — including long service leave — she walked away with approximately $30,000.
Retirement specialists say Helen's experience is far from unusual. Health issues, caring responsibilities, changing family circumstances or redundancy can all bring retirement forward unexpectedly, catching people without a clear financial plan in place. The challenge is that many Australians assume they will retire on their own schedule — and plan accordingly.
The Superannuation Mistakes That Cost Her Dearly
Helen's financial anxiety had deep roots. Through her 50s she salary sacrificed heavily into superannuation, building her balance steadily. Then the global financial crisis hit — and it rattled her badly. "That scared the hell out of me," she says. She and her husband moved their entire super balance into cash and left it there for years.
The cost of that decision became clear in hindsight. "If I'd left it where it was, I'd probably have half a million sitting in super, not $250,000," she says. Her own advice now: "Just leave the super as it was and let it do its bit."
Financial experts caution that moving retirement savings into cash during a market downturn — and leaving them there — is one of the most common and costly errors retirees make. While cash offers stability, inflation steadily erodes its purchasing power over what can be a very long retirement. A more sustainable approach, advisers suggest, is to spread investments across different asset classes while keeping enough in cash or defensive assets to cover near-term expenses.
For anyone wondering whether cautious retirement planning is worth the effort, the true costs of retirement decisions can be far less obvious than they first appear.
Making the Money Last — and What Keeps Her Up at Night
Helen's household income now draws from several sources: her superannuation, accessed as a lump sum when needed; a part Government Age Pension of around $400 a fortnight each for her and her husband; personal savings; and her husband's two remaining days of paid work each week.
Her longer-term concern is longevity. With approximately $250,000 left in super and a paid-off home, Helen notes that one of her sisters is 97. "If I live to 97, we're going to run out of money," she says. She is not alone in that worry — research indicates 58 per cent of Australians fear outliving their retirement savings.
The couple's planning is also shaped by family responsibility. They have an adult child with ongoing support needs, and Helen is clear she wants to leave something behind for her children. "If it was just us, we could live quite comfortably and die with no money left, and that would be fine," she says. "But I want to leave some money to my kids."
Life After the Finish Line
Whatever the financial complexities, Helen says the lived reality of retirement has surprised her in the best way. She volunteers weekly at a community centre, helping serve three-course meals for $10 a head. She drives more than three hours to watch her grandchildren play football. The financial dread that defined her 50s has not materialised. "I'm certainly calmer. There's no pressure. If I didn't do something today, it doesn't matter."
Her practical advice to her own daughter, and anyone else who asks: salary sacrifice into super if you can afford to, and pay off your home. Simple principles — but ones she wishes she had applied with more confidence, and less fear, far earlier.
