Here are five tips to help you enjoy a smooth transition while making the most of your money.

Understand important dates

There is no fixed age for retirement.

You can hang up your work boots whenever you choose though a few dates may shape your decision.

Once you reach your preservation age, that's between 55 and 60 depending on when you were born, you can start a transition-to-retirement income stream (TRIS).

This is a superannuation pension stream that you can draw on while you're still working.

It can be a way to scale back working hours and plan effectively for your retirement.

Then, from age 65, you can start drawing on your superannuation - even if you're still working.

The age pension is available (assuming you're eligible) from age 66 years and six months for people born between July 1, 1955, and December 31, 1956. If you were born after January 1, 1957, you'll have to wait until you turn 67.

Clear debts

People often focus on giving their super and other investments a last-minute boost before retiring.

Yes, that matters. But it's also worth entering retirement with as little debt as possible. Paying down debt means more of your money goes to your lifestyle instead of your lender.

Work out likely living costs

Draw up a retirement budget to understand how much you'll need to live on.

The latest estimates from the Association of Superannuation Funds of Australia suggest it costs a single person $28,775 annually to fund a modest retirement lifestyle, or $45,239 for a comfortable lifestyle.

Couples can expect to spend around $41,446 annually for modest living versus $63,799 for a comfortable retirement.

These figures assume you own your home debt-free.

Get to know your financial resources

Retirement income can come from a variety of resources, including the age pension, personal investments, super and even the family home.

How you use your super deserves careful thought.

Taking a lump sum means shifting money out of super's very low-tax environment.

By contrast, using your super to invest in a personal income stream such as an account-based pension, delivers ongoing tax savings and provides regular payments making budgeting easier.

Invest in good advice

Deciding how to use your super can call for professional financial advice.

For many Australians, retirement is the first time they have a large sum of money to tap into - and it can be pretty scary. With retirement money, you get no second chances, so you need to choose wisely.