Financial goals guide 2025
Your future’s on the line. Don’t stay on hold in 2025.
Is it March already? It’s time to start nurturing your future self by doing this one thing to get your long-term finances in order. Nine in 10 wealthy Australians are quietly doing it already*, new research from Colonial First State (CFS) shows.
If it still feels like you just left 2024 behind, time may be flying by so fast it’s hard to plan for the weekend, let alone for something that may be years or even decades away.
New research from CFS bears this out, revealing only two in five* Australians feel prepared for life after work and less than half expect to be able to live comfortably when they get there.
Getting on top of your finances is one of the most common new year’s resolutions, set by one in two Australians, according to new research from the government’s Moneysmart website. Despite that, only one person in eight sticks to it.
In contrast, new CFS data on the secret strategies of the wealthy indicates that nine in ten of the well to do have set a long-term financial goal, such as identifying the age at which they want to stop working.
So, as 2025 gathers momentum, CFS have put together a plan to help you look after your future self by taking one crucial step towards getting your long-term finances in order.
The importance of setting a financial goal
A key difference between those who have planned well for their long-term future and those who haven’t is making the decision to set a specific, long-term financial goal.
This might be the age at which you want to retire. You might want to travel for a year when you stop work. Maybe you’re planning to move or take up a new hobby.
Whatever it is, once you’ve got a vision for your long term future, you can establish the short term and medium term goals to help you get there.
The long and the short of it
Most people will have a mix of short-term and longer-term financial goals that are very personal to their needs.
The beauty of setting short-term goals is that once you are in the habit of setting money aside to achieve them, it should be easier to maintain that discipline and direct that money to achieving your longer-term objectives.
- Short-term goals are things you would expect to achieve within the next five years.
These might include paying off credit cards and other higher interest debts, getting your super in order, saving for a holiday, accumulating an emergency fund or buying a car. - Medium-term goals are those you might achieve in a five to 20 year time frame.
Saving for a house deposit or creating an education fund might fall into this category. - Long-term goals might include things like paying off your mortgage, making additional super contributions or investing outside your super.
Get smarter about goal setting
When it comes to determining your goals, it’s important to set what are known as SMART goals, which means they should be:
- Specific
- Measurable
- Achievable
- Realistic
- Time bound.
In practice, rather than aiming to “save more”, an example of a simple, short-term SMART goal might be “set up an automatic deposit of $25 a week to pay off my $1,000 credit card debt by the end of 2025”.
How super can help you save
We know from the CFS research that the biggest regret of people as they approach retirement is not contributing more to their retirement savings. In fact, it’s the most common reason people feel they are off track financially, experienced by almost three in five Australians.
Using your super to save and preserve those savings for when you ultimately stop working, is a great way to help prepare financially for the long term.
The earnings your super makes are generally taxed at 15%, which is lower than many people’s marginal tax rate. This means your savings are likely to compound and grow faster.
As the earnings on your super are reinvested and taxed at a lower rate than earnings outside super, you can generate returns on your returns, leading to exponential growth over time.
Compound returns in action in super
Even small, regular contributions to your super can grow significantly. It works even better if you start early and remain consistent, although there are ways to leverage the benefits of super at any age.
For example, say you decided to give up one takeaway meal a week, saving $25. If you make a $35 pre-tax voluntary contribution to your super each week (assuming a 30% tax rate this would leave you $25 less in your take home pay), here’s how it could compound and contribute meaningful amounts by the time you retire^:
- $89,980 if you start at the age of 30
- $56,622 if you start at 40
- $30,264 if you start at 50.
If you set up a salary sacrifice contribution through your employer using pre-tax income, you might not notice much difference to your take home pay after tax is taken into account.
Month by month steps to establishing your long-term financial goals
So, if you only do one thing for your financial future this month, try setting your financial goals.
Then do one more thing each month between now and the end of the financial year to organise your finances so you’re more prepared for when you eventually stop working.
MARCH: Set your financial goals
Set your short, medium and long term goals, and make them specific, measurable and achievable.
How much will you need to retire? Use a Retirement Calculator to determine how much money you will need for the lifestyle you want when you stop working.
APRIL: Understand how your super is invested
Review your super to ensure it is invested to suit your risk appetite, timeline and financial goals by logging into your account or downloading our mobile app.
Growth options may generate more money at a higher level of risk that may be appropriate if you have a longer investment time frame.
You can use the ATO’s online tools to check for any lost super accounts and consolidate them into your main super fund. This can help reduce fees and make it easier to manage your super.
However, it’s also important to check you won’t lose key benefits that your provider may offer, such as insurance.
MAY: Make an additional contribution
There are many ways to make a tax effective extra contribution to your super including:
- salary sacrifice
- personal tax deductible contributions.
Other ways to contribute include:
- after-tax contributions
- spouse contribution
- downsizer contribution (may be applicable if you’re aged over 55 and you meet the eligibility conditions).
Be aware your money will be preserved in your super until you meet the conditions of release or satisfy other special circumstances.
JUNE: Can super help you catch up or get ahead?
Consider whether you can catch up on super you may have missed out on if you took time out of the workforce, or think about other ways to boost your super balance, including:
- Making a pre-tax contribution using the carry forward rules
- Making an after-tax contribution using the bring forward rules
- Saving for a first home deposit faster using the First Home Super Saver scheme.
JULY: Double check the basics
Assess your insurance cover within your super to ensure its adequate for your needs. This includes life insurance, total and permanent disability (TPD) insurance, and income protection insurance.
Make sure you have nominated your beneficiaries to ensure that, in the event of your death, your super passes to those you intend as your super doesn’t form part of your will.
Remember, if you need more help, speak to a financial adviser.
It’s also important to update your beneficiaries when something changes, such as having children or ending a relationship.
* Rethinking Retirement 2025, commissioned by CFS and conducted with more than 2247 Australians from July-September 2024.
^ These calculations are based on modelling provided by moneysmart.gov.au – superannuation calculator, using the following assumptions: ages as indicated, salary $80,000PA, retirement age 65, superannuation starting balance of $65,000, employer SG plus weekly $36.76 voluntary pre-tax contribution, earning rate 7.5%, effective tax rate on investment earnings 7.0%, investment fees 0.85%, fund fees $74, insurance costs $214, 2.5% inflation, 1.5% additional rise in living standard. Tax rates applicable for the 2025-26 financial year.
Source: Colonial First State
