💳 How Do I Manage Debt in Retirement? A 10-Step Checklist
- Norma Falconer
- Aug 6
- 4 min read
Updated: Aug 7
Retirement is meant to be a time of freedom and peace - but lingering debt can quickly turn it into a source of stress.
Whether it’s a mortgage, credit card balance, or personal loan, managing debt in retirement requires careful planning and smart strategies.
To help you manage this challenge, we’ve created a 10-step checklist that covers everything from budgeting and prioritising repayments to accessing government support and avoiding scams.
This guide draws on trusted sources like Moneysmart, Services Australia, and the ATO to help you make informed decisions and protect your financial wellbeing.
Whether you're already retired or planning ahead, this checklist will help you take control of your debt and enjoy a more secure retirement.
✅ 1. Assess All Your Debts
Start by listing all your debts - mortgage, credit cards, personal loans, and Centrelink debts. Understanding your full debt picture is the first step to managing it.
✅ 2. Create a Retirement Budget
A realistic budget helps you avoid overspending and ensures you can meet debt repayments. Include all income sources and expenses.
✅ 3. Prioritise High-Interest Debt
Focus on paying off high-interest debts first, such as credit cards. This reduces the overall cost of debt over time.
✅ 4. Consider Using Super Wisely
You may choose to use part of your super to pay off debts, but weigh the impact on your long-term retirement income.
✅ 5. Explore Government Support
Services Australia offers concessions and payments that can ease financial pressure, including the Age Pension and Rent Assistance.
✅ 6. Seek Professional Advice and ask How do I manage debt in retirement
Talk to your financial adviser, or use Services Australia’s Financial Information Service (FIS) for free, confidential advice on managing debt and budgeting.
✅ 7. Avoid New Debt
Limit new borrowing unless absolutely necessary. Consider alternatives like downsizing or accessing equity in your home.
✅ 8. Monitor for Scams
Retirees are often targeted by scams. Stay informed and cautious with financial offers and online activity.
✅ 9. Review Insurance Policies
Ensure you’re not overpaying for insurance. Cancel unnecessary policies and adjust coverage to suit your retirement lifestyle.
✅ 10. Plan for Unexpected Expenses
Set aside a small emergency fund to avoid relying on credit for unexpected costs like medical bills or home repairs.
References
📅 Ready to Take Control of Your Finances and Manage Your Debt in Retirement?
Debt doesn’t have to define your retirement. With the right advice and a clear plan, you can reduce financial stress and focus on what matters most.
👉 Book a retirement planning appointment today to get personalised guidance on managing debt, budgeting, and making the most of your super.
Let’s build a retirement that’s financially independent and worry-free.
🔗 Schedule your appointment now using the link below
At Think Capital Advice, we believe in empowering our clients with tailored financial strategies to achieve their goals. Curious to know more about who we are?
Visit our About Us page and learn how we’re committed to delivering prudent advice, practical solutions, and progressive results.
Norma Falconer is a Business Owner, Entrepreneur, Financial Planner, Portfolio and Invesment Manager, Personal Insurance Specialist and Estate Planner, in Australia, known for her prudent advice, practical solutions, and progressive results.
As the Founder of Think Capital Advice, Norma combines deep technical expertise with a compassionate, personalised and client-centric approach. Norma specialises in guiding high-income-earning business owners, professionals, and their families toward achieving their version of financial independence. Her dedication to excellence is matched by a commitment to making complex financial concepts accessible and actionable for her clients.
She is Professionally Licensed, FASEA-accredited, a Tax (Financial) Adviser, and holds multiple qualifications, including a Post-Graduate Diploma of Financial Planning and certifications in results coaching. Beyond her professional achievements, Norma is an advocate for community empowerment and has served on various boards, including the Cansa Association and Business Women’s Association. She is also a best-selling author, recognised speaker, and media contributor, sharing insights that simplify the path to financial independence.
Leveraging over 36 years of working with high-net wealth families, the team at Think Capital Advice excel in working with you to improve financial stability through maximising cashflow, growing wealth, utilising tax-effective strategies, and ensuring that your legacy is protected. Learn more at Think Capital Advice
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