A Simple Guide to Retirement Planning for Young Professionals

When you're in your twenties or thirties, retirement can feel like a lifetime away. But the truth is, the earlier you start, the more freedom and financial security you'll have down the track.

In fact, Australians who begin saving in their 20s can retire with nearly double the super balance of those who wait until their 30s to start planning.

Retirement planning for young professionals isn’t about sacrificing your lifestyle. It's about building smart habits now that set you up for a future of choice, not compromise.

Whether you're just starting your first job or climbing the career ladder, this guide breaks down the essentials in a way that’s easy to follow and actually useful.

Ready to take control of your financial future? Read on and learn how to start planning for retirement today, without the overwhelm.

Why Retirement Planning Matters Now

Let’s face it, retirement isn’t what it used to be. With life expectancy increasing, superannuation rules evolving and the rising cost of living, young professionals can no longer rely solely on employer super contributions or the age pension. 

Starting early allows compound interest to work in your favour and gives you greater flexibility in how and when you choose to retire.

Step 1: Understand Your Super

Your superannuation is the cornerstone of your retirement savings in Australia. Here’s what you need to know:

• Employer Contributions: Employers must contribute 11% of your salary to your super fund (as of 2025).

• Fund Choice: You can choose your super fund. Compare fees, investment options and performance using tools like the ATO’s YourSuper comparison tool.

• Consolidate Your Super: If you’ve had multiple jobs, you might have more than one fund. Consolidating them can save on fees and simplify tracking.

Pro tip: Log into your MyGov account and link the ATO to check your current super fund and contributions.

Step 2: Set a Retirement Goal

Don’t worry, you don’t need to have it all figured out; just start with a vision:

• What kind of lifestyle do you want in retirement?
• Do you want to retire early or ease into part-time work?
• Will you own your home or be renting?

A comfortable retirement in Australia (for a single person) is currently estimated to require around $595,000 in superannuation savings, according to the Association of Superannuation Funds of Australia (ASFA). But your number may differ depending on your plans.

Step 3: Boost Your Contributions

Small extra contributions now can significantly increase your retirement nest egg, thanks to compounding interest.

• Salary Sacrificing: You can ask your employer to pay a portion of your pre-tax income into your super. This may also reduce your taxable income.
  
  
• Voluntary Contributions: Add after-tax dollars to your super. You may even be eligible for government co-contributions.
  
  
• Spouse Contributions: Contributing to your partner’s super (if they earn a lower income) can provide tax offsets.

Example: An extra $20 a week in your twenties can turn into tens of thousands more by retirement.

Step 4: Diversify Your Investments

While super is crucial, consider building wealth outside of it too:

• Shares and ETFs: Investing in the share market can deliver long-term growth. Platforms like CommSec or SelfWealth make it accessible.

• Property: Whether it’s your first home or an investment property, real estate can be a strong long-term asset.

• Managed Funds or Robo-Advisors: If DIY investing isn’t your thing, consider low-fee managed solutions.

Don’t put all your eggs in one basket. Diversification helps manage risk and grow wealth sustainably.

Step 5: Get Financial Advice Early

Many young professionals think financial advice is only for the wealthy or those nearing retirement, but getting advice early can supercharge your future.

• A financial adviser can help with goal-setting, budgeting, investment strategies and super planning.

• At ALCHEMYFIN, we specialise in helping young Australians make confident, informed financial decisions without the jargon.

Step 6: Review and Adjust Regularly

Life changes. New job, home, partner, kids. Your financial plan should evolve too.

• Set a reminder to review your super annually.
• Revisit your budget and savings goals every 6–12 months.
• Stay informed about changes to superannuation laws and market conditions.

Consistency is key. A little effort each year goes a long way towards financial freedom.

Final Thoughts

Retirement may be decades away, but the choices you make in your twenties and thirties have a massive impact on the kind of life you’ll live in your sixties and beyond. It’s not about making huge sacrifices now, it’s about being smart, consistent and proactive.

At ALCHEMYFIN, we’re here to help you turn your income into long-term wealth. Whether you’re looking to make your first super contribution or map out your dream retirement, we’ll help you put the right plan in place.

Ready to start planning your financial future? Get in touch with us at ALCHEMYFIN and book your free strategy session with one of our friendly financial experts.