Redundancy, Retirement and the #1 key mistake people make (It’s different to what you think)
General
| July 27, 2026
The Key Mistake People Make
If you’re a public servant, you’re probably aware of the State Governments Voluntary Targeted Severance scheme. And if you’re of a certain vintage, you are probably considering applying if you haven’t done so already.
If you’re considering a voluntary redundancy, you’re probably focused on the numbers.
- How much will I receive?
- What portion is tax-free?
- What happens to my leave entitlements?
These are important questions. But they’re not the most important question. The biggest mistake I see people make isn’t getting the tax wrong. It’s misjudging how much healthy time they have left to enjoy retirement.
The average number of disability free years a man can expect after 65 is 8.9. For a woman, it’s 10*
Let that number sink in. It is this number that should have you lying awake at night far more than a Trump presidency, middle east war or global pandemic.
What it means in practice is that your ability, desire and independence will probably decline faster than you think. An overseas holiday at 62 is a far, far different experience from an overseas holiday at 72. The walking trip through Sicily that is easily manageable becomes a miserable experience a decade later. In your mid 60’s, volunteer work will be easy to manage, you have the energy to learn new things, to take on new projects. By your mid 70’s life fundamentally changes, and not necessarily in the way that you think it will.
The biggest concern health-wise that I hear from clients is usually about some kind of catastrophic event due to which retirement gets shortened dramatically. Think of the terminal cancer diagnosis or heart attack which happens 3 months into retirement.
Everyone has one of these anecdotes they are willing to share. To be fair, there is some medical evidence that retirement isn’t ideal for health. I will explore this in a future article).
A Knowledgeable Take
But again, from 20 years of experience and having helped thousands of people into and through retirement, I can count on one hand the number of clients this has happened to. By far the biggest limitation in retirement is a gradual decline in physical and mental ability over time. Think the sore knee that doesn’t limit travel at 65 but at 75 becomes a reason not to go on the trip. The increased tiredness that makes towing a caravan exhausting. Spending reduces due to physical limitation – it’s not driven by a lack of money. A person with $1m at 80 will probably have more money than they can realistically enjoy spending. You may have seen this with your parents. It just won’t be possible! And then the question becomes what was it all for in the first place?
What does this mean when considering a redundancy?
The key questions to answer when considering a redundancy are not tax or super related (that’s for your financial adviser to work out). The key consideration should be balancing the need to retire early enough to enjoy it, with the need to avoid dying poor. You’re probably worrying far too much about the latter and far too little about the former.
How we can help
Profusion Planning has decades of experience with GESB members approaching retirement. If you’re considering the above questions (and if not – you definitely should be), we can talk you through where you sit and the choices available. And probably help design a retirement that isn’t just better structured, but helps you worry less about having enough money and more about how to spend it wisely!
*Australian Institute of Health and Welfare (AIHW), Australia’s Health 2024: Health of Older People, Australian Government, available at: https://www.aihw.gov.au/reports/australias-health/health-of-older-people
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Our team can help you navigate these changes and optimise your retirement strategy. Contact us today for a personalised consultation.
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