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Our team of financial experts help you navigate to and through retirement in this six-part series. See all stories.<\/a><\/p>\n Many people assume it\u2019s best to reach retirement with zero debt, but it\u2019s not the be-all and end-all, according to financial experts.<\/p>\n Avoiding debt repayments after you\u2019ve finished earning a regular income seems sensible, but there are financial and lifestyle considerations, says Jason Chew, head of advice at Vista Financial Group.<\/p>\n He explains that although many Australians access their superannuation to clear debt, including their mortgage, the potential downside is missing out on compounding returns.<\/p>\n \u201cYou\u2019re eating into your retirement savings, which will undoubtedly have an impact on how much you can spend while retired,\u201d says Chew.<\/p>\n Know your financial position Deciding whether to pay down or manage outstanding debt upon retirement is informed by a range of factors, says Peter Hogg, general manager guidance and advice at Aware Super.<\/p>\n \u201cThe key is understanding the trade-offs across financial, emotional and flexibility dimensions, and making informed choices rather than just defaulting to one approach,\u201d he says.<\/p>\n \u201cBeing debt-free in retirement can bring peace of mind, and for many people that comfort is just as important as the financial maths.<\/p>\n \u201cBut some people choose to carry a manageable level of debt if they have the right income streams and a clear plan to service it.\u201d<\/p>\n Smart strategies for managing debt<\/p>\n Chew explains one approach is to channel your super into a retirement income account. \u201cThen you can accelerate your monthly loan repayments, which doesn\u2019t extinguish the debt all together, but it fast tracks the reduction of debt.<\/p>\n \u201cIt diminishes quicker without having as big a negative impact on your retirement savings.\u201d<\/p>\n Any Australian over 65 can access super while still employed (in some instances earlier if certain requirements are met) and tapping that while still working can make a real difference, says Chew.<\/p>\n \u201cSay you\u2019ve got $150,000 left on your mortgage, getting [a lump sum] out of super, while you\u2019re still working full-time and not planning to retire, makes a massive difference to that small debt left on your home loan.\u201d<\/p>\n Related Article Giving your super a boost via before-tax contributions is another approach to consider, says Hogg: \u201cFor higher income earners, salary sacrifice can be a powerful strategy.\u201d<\/p>\n Downsizing and changing lifestyles<\/p>\n Another strategy frequently utilised by Australians to boost their super in the lead up to retirement is selling the family home.<\/p>\n \u201cThat can solve the debt problem and free up cash at the same time,\u201d says Hogg.<\/p>\n Provided certain conditions are met, including length of home ownership<\/a>, this provides access to the downsizer contribution, explains Chew.<\/p>\n \u201cIf you downsize and there\u2019s money left over, you can put up to $300,000 into super, per person, so a couple could [add] $600,000.\u201d<\/p>\n The reality of retirement spending<\/p>\n Establishing what your retirement life is going to look like can really help when it comes to planning. Many make the mistake of assuming their spending will drop just because they\u2019ve stopped working.<\/p>\n \u201cThere are usually phases [to retirement],\u201d explains Hogg. \u201cThe early years can be the \u2018honeymoon phase\u2019 where you\u2019re taking holidays, buying a caravan, maybe helping the kids out.\u201d<\/p>\n Related Article Spending can then plateau around mid-retirement before the period where health and aged-care costs come to the fore.<\/p>\n Hogg says the good news for many people is they\u2019re not relying solely on super and savings: \u201cThe age pension plays a much more prominent role in retirement than many expect.\u201d<\/p>\n If you\u2019re wondering when\u2019s a good time to start thinking about this, the answer is \u2018now\u2019.<\/p>\n \u201cMany people start thinking seriously about retirement in their late 50s and 60s,\u201d says Hogg. \u201cBut those who engage earlier tend to have more options available to them and more confidence in their plan.\u201d<\/p>\n Planning ahead, educating yourself and talking to professionals are all good ways to help reduce anxiety around debt as you head towards retirement.<\/p>\n Advice given in this article is general in nature and is not intended to influence readers\u2019 decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.<\/p>\n Expert tips on how to save, invest and make the most of your money delivered to your inbox every Sunday. Sign up for our Real Money newsletter<\/a>.<\/p>\n Save<\/p>\n You have reached your maximum number of saved items.<\/p>\n![\"Consider](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/05\/85ab756a4d011bf452743567188a9bec76f6f89be3290aef7d6efdb8859cfcde.jpeg\")
Consider your property options carefully.Simon Letch<\/p>\n![\"Aware](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/05\/7c5b347d47e233513fc3ce4cdb547a08a6eb4f1c.jpeg\")
Aware Super\u2019s Peter Hogg<\/p>\n![\"What](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/05\/1779240378_842_eaea90ab339cb7ce60e42d2e5169e920a1607a8a1112425c2e26b8a1f745c4d5.jpeg\")
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