Redundant at 69: retirement without a plan

Most people downsize when they retire. Helen* went the other way, to nine acres in regional NSW, where her husband slashes the paddocks by tractor and she grows the vegetables she donates to a community centre.

“I’m retired. I’ve got all the time in the world,” says the 71-year-old, laughing. But the date that time began was never hers to pick. Two years ago, after roughly 30 years with the same construction company, Helen returned from an overseas family funeral to a meeting with her manager. Her office role had been made redundant. She was 69.

“It didn’t worry me at the time,” she says. “I thought, no, that’s good.” The fine print stung more: her contract recognised only 10 of her 30 years, and past retirement age the payout was taxed harder. After tax, including her long service leave, it came to about $30,000.

The fear that kept her working

For years, Helen’s retirement remained a moving target. She originally planned to stop working at 55, but financial anxiety kept her working. Rather than quitting cold turkey, she cut back to four days, then three. “I didn’t want to jump straight from five days to zero,” she says. Remote work through COVID pushed the finish line even further back — until it was finally moved for her.

It happens more often than people expect, says AMP general manager of guidance and advice Andrea Boss. “Retirement doesn’t always happen on your timetable,” she says. “Health challenges, caring responsibilities, redundancy or changing family circumstances can bring it forward unexpectedly.”

The fear had deep roots. She salary sacrificed hard through her 50s, then watched the global financial crisis knock her balance. “That scared the hell out of me,” she says. The couple moved their super into cash, and left it there. “If I’d left it where it was, I’d probably have half a million sitting in super, not 250 thousand.” Her fix, in hindsight: “Just leave the super as it was and let it do its bit.”

The instinct is common, and costly, says AMP chief investment officer Anna Shelley. “Cash is obviously stable, but over a long retirement its buying power is eroded by inflation,” she says. “A common approach is to spread money across different types of investments and keep enough in cash or other defensive assets for nearer-term expenses.”

Income from multiple angles

No single payment replaced Helen’s salary. The household runs on a combination: her super, drawn as a lump sum when needed; a part Government Age Pension of about $400 a fortnight each; savings and her husband’s two remaining days a week working.

Helen has about $250,000 left in super, a paid-off home, and a family that lives long: one of her sisters is 97. “If I live to 97, we’re going to run out of money,” she says. “But I assume we’re not going to live here on nine acres till I’m 97 either.” It’s a common concern; 58 per cent of Australians worry about running out of money in retirement, according to AMP’s 2026 Retirement Confidence Pulse.

What they spend is shaped by who comes after. They have an adult child with ongoing support needs, and the couple’s planning considers him and their other children. “If it was just us, we could live quite comfortably and die with no money left, and that would be fine,” Helen says. “But I want to leave some money to my kids.”

10,000 days, calmer

Retirement can now stretch 10,000 days or more, and Helen is filling hers deliberately: volunteering weekly at a community centre serving three-course meals for $10, and driving three and a half hours to watch her grandchildren play footy. The worries of her 50s have not eventuated. “I’m certainly calmer. There’s no pressure. If I didn’t do something today, it doesn’t matter.”

Her advice, when her daughter asks? “Salary sacrifice if you can afford to. And pay your house off.”

While absolute certainty never arrived, confidence did. According to Ben Hillier, AMP’s director of retirement, spending your super isn’t a failure to protect your nest egg; it’s fulfilling its purpose. You built those savings specifically to fund this stage of life, so spending them means the plan is working.

To understand how to turn your fears into retirement confidence, visit AMP Super’s Retire the Fear hub at amp.com.au/retirethefear

*Names and some identifying details have been changed at the family’s request.

This information is general in nature and does not constitute financial product advice. Readers should consider their own circumstances and seek independent professional advice.