How to Retire Debt-Free by 65

Want to retire at 65 and be completely debt-free? It may be possible, but the strategy depends on your individual circumstances. In this example, the assumption is that you're 55 years old with a $100,000 mortgage and around $500,000 in superannuation. For the next five years, the focus is on maximising superannuation contributions. This means contributing up to the concessional cap of $32,500 per year, including employer contributions. Once you reach age 60, you may be able to start a Transition to Retirement Income Stream (TTR), even if you're still working. A TTR allows you to access up to 10% of your super balance each year. If your super balance has grown to around $600,000 by age 60, you could access approximately $60,000 and put that directly towards your mortgage. If there's still debt remaining, the process could be repeated the following year. Under these assumptions, the mortgage could be fully repaid by age 62, leaving the remaining years before retirement to continue building your super balance. One of the key benefits of this approach is the tax advantage of making concessional super contributions. Depending on your marginal tax rate, the tax savings from contributing to super may outweigh the interest being paid on your mortgage. This is a highly specific example using a particular set of assumptions, so it won't be the right strategy for everyone. The numbers will vary depending on your age, super balance, income, debt, and financial goals. General advice only. Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).

Disclaimer || The information provided in this post is general in nature only and does not constitute personal financial advice. Amy Lehmann is an Authorised Representative(No. 1292710) of AFSL 495401.