What to Do in the Last 5 Years Before You Retire

Photo source: openverse, Anastasia Shuraeva

The final five years before retirement are some of the most important of your working life. Good retirement planning at this stage can turn uncertainty into confidence. Here is a general guide for New Zealand seniors on where to focus your time and energy.

Check Your Money Picture

Start by finding out what you will actually have to live on. Review your KiwiSaver balance, any other savings, and what you can expect from NZ Super, which is generally available from age 65. Free tools such as the Sorted website can help you estimate your weekly income and see whether it matches your lifestyle. Retirement planning works best when it is based on real numbers rather than guesses.

Reduce Debt and Review Your Home

Aim to enter retirement with as little debt as possible. Paying down your mortgage, credit cards, and loans can ease pressure on a fixed income. It is also a good time to think about your housing needs. Ask yourself whether your current home will still suit you in ten or fifteen years, or whether downsizing or moving closer to family might make life easier.

Look After Your Health

Your health is a key part of retirement planning. Book regular check-ups, stay active, and build habits that support you for the long term. Staying fit now helps you enjoy your free time later and may reduce future health costs.

Get Your Legal Affairs in Order

Make sure your will is up to date and consider setting up enduring powers of attorney for both property and personal care and welfare. These documents give you and your family peace of mind. Speak with a lawyer if you need guidance.

Plan How You Will Spend Your Time

Retirement is a big change in daily routine. Think about hobbies, volunteering, travel, and time with grandchildren. Some people ease into retirement by reducing their hours or working part-time, which can soften the transition and keep income flowing. Having purpose and social connection is just as valuable as having money.

Know What Support Is Available

Learn about entitlements such as the SuperGold Card and the Community Services Card, which may offer discounts on transport, health care, and everyday costs. Work and income can explain what you may qualify for.

The last five years are your chance to prepare with confidence. Start retirement planning today, seek independent advice where needed, and look forward to the years ahead.