So what are you doing for the rest of your life? Your post-work life, that is.
There's a lot more to planning for retirement than money. For our grandparents and earlier generations this wasn't such a burning question. Their expectations and living standards were shaped by poorer health and less affluent times. Many were happy just to reach retirement, and lower life expectancies meant they would be likely to die within five years of leaving the workforce.
Today, life expectancy has stretched to 83 for women and 78 for men. But that's an average, and depending on your gene pool, your planning may need to include strategies to sustain you to age 100.
Retirement is no longer seen as the end of an era, a quiet slide into our dotage. Increasingly it's the beginning of a new phase of life at its best it is a "third age of opportunity".
If you haven't visualised much beyond the overseas trip and finally getting the garden straightened out, think for a moment about what you'd like to achieve.
I heard a psychologist say recently that we should plan for about three significant activities a week in retirement. "Significant" means different things to different people, but essentially they should be stimulating, or meaningful to us. This could include some work (paid or voluntary), a vocational course or educational interests, arts, social or sporting activities.
Some retirees have even set up their own small business around their interests. This needs careful planning. In a book by Jill and Owen Weeks Retire Bizzi the authors profile more than 100 case studies and the associated business lessons. Examples range from: running a bed and breakfast by the sea; becoming a clown; using counselling skills part time and cleaning ovens.
Their key messages include:
Choose a business or activity that suits your skills and abilities;
Make sure you know what you are doing before you try it;
Never put at risk your retirement income for investments;
Remain inspired and challenged.
You might be planning to work flexible hours and have longer holidays. But what happens if your partner doesn't have the same flexibility?
Although not everyone will have the luxury of negotiating a phased departure from work, retiring gradually and trying out new options can make a great deal of sense. Part time, casual or contract work may be the way to go for others.
Equally, new ground rules may need to be negotiated if both partners are now at home. Some people who live in cities may realistically be able to downsize or have a sea change.
But there can be important differences between a holiday destination and a retirement location, so it's vital to do your research before you decide to settle in that beaut little coastal village.
Your retirement locality needs to be well served by good medical facilities, transport and amenities. Otherwise, selling up and relocating can be a costly mistake and not only in terms of money.
Plan to make the most of your "third age". Think of it like this: you're not retiring from something, you're retiring to something.
Philippa Smith is the CEO of ASFA (The Association of Superannuation Funds of Australia).
