Retirement investment options

The right investment options to generate income depend entirely on your circumstances, but there are tried-and-tested approaches that often work well for Australian retirees. For example:

• Dividend-paying shares can offer regular income while keeping your capital invested for potential growth.
• Bonds and fixed-income securities provide stability, which can help balance riskier assets.
• Rental properties are great for those comfortable managing real estate, offering steady rental income.
• An account-based pension allows you to draw a reliable income from your super while keeping your funds invested.
• Term deposits offer secure, low-risk returns for short- or medium-term income stability.

We take the time to understand your needs and craft a strategy that combines these elements in a way that works for you. Every decision is aimed at keeping your income stable and your nest egg secure.

How long $500,000 lasts in retirement depends on a variety of factors, including your lifestyle, investment strategy, and whether you qualify for government support like the age pension. Here’s how to think about it:

1. Annual expenses:
   • If your annual living costs are modest, say $40,000, your savings could last around 12-15 years, depending on investment returns and inflation.
   • For more comfortable lifestyles with annual expenses of $60,000, you’d be looking at around 8-10 years.
2. Investment strategy:
   A portion of your $500,000 could be invested to generate returns, helping extend its longevity. For instance, investing in a diversified portfolio with a 5% annual return could stretch your funds significantly longer.
3. Supplementary income:
   If you qualify for the age pension, it could supplement your income and reduce the amount you need to withdraw from your savings each year. This can add several years to your retirement funds.

Our personalised retirement planning helps you determine how long your savings will last and provides strategies to make the most of your resources.

Retiring on $100,000 a year requires a well-thought-out plan, as it’s above the typical income needs for retirees in Australia. Here’s a breakdown of what you’ll need to consider:

1. Savings target:
   • To maintain an income of $100,000 annually, assuming no Age Pension support, you’ll likely need at least $2.5 million in super and investments, depending on your expected investment returns and the duration of your retirement.
   • This figure assumes a retirement length of 25 years, with annual withdrawals adjusted for inflation.
2. Investment strategy:
   A diversified portfolio, combining income-producing assets like dividend-paying shares and bonds with growth investments, can help you sustain this income level while keeping your capital working for you.
3. Tax implications:some text
   • Superannuation: If you draw your income from a super account, much of it could be tax-free, especially if you’re over 60.
   • Other Investments: Income from property or shares might be subject to tax, so efficient structuring is key to maximising your post-tax income.
4. Additional considerations:some text
   • Factoring in lump sum withdrawals for big expenses like travel or home renovations can impact how long your savings last.
   • Accounting for living costs such as healthcare or lifestyle changes will also play a role.

We work with you to build a strategy that ensures your savings and investments support your goal of $100,000 annually while minimising risks and maximising returns.

Market volatility is a natural part of investing, but that doesn’t mean it has to derail your retirement plan. When markets fluctuate, our focus is on ensuring your portfolio stays resilient through strategies like:

• Diversification, which reduces your exposure to any single risk by spreading investments across multiple asset classes.
• Regular portfolio rebalancing to keep your investment mix aligned with your goals, even as markets change.
• Income-focused assets, like bonds or high-dividend shares, which can provide steady returns regardless of market conditions.

When you work with us, you’ll have a strategy in place that’s designed to weather the storms while keeping your long-term goals in sight.

This is a question we explore with every client, and the answer depends on your priorities. Investing within super is incredibly tax-effective — for example, once you’re over 60, you can often draw from super tax-free. On the other hand, investing outside of super gives you more flexibility and liquidity, particularly through accessible options like a bank account or other investments that can be quickly converted to cash if needed.

Additionally, we’ll consider how investing might impact your eligibility for government support, such as the age pension, which could play an important role in supplementing your retirement income. If you anticipate needing significant funds for major expenses, lump sum withdrawals from your super could be an option. However, it’s important to plan these carefully to avoid depleting your savings too quickly or incurring unexpected tax implications.

We often recommend a blend of both approaches to balance flexibility and tax efficiency. During our sessions, we’ll look closely at your current financial situation and goals to find the right balance for you.

The best way to answer this is through a comprehensive review of your portfolio. During this process, we focus on key areas:

• Are your returns meeting your income needs? If not, we’ll adjust your investment mix to bridge that gap.
• Is your portfolio balanced? We’ll ensure you’re not overexposed to risk or too conservative, which could hinder long-term growth.
• Are you optimising for tax? We help identify opportunities to reduce your tax burden, leaving more money in your pocket.

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If you’re unsure, a review with us can provide clarity. We’ll help you understand where you stand and outline any adjustments needed to stay on track.

Longevity is a key concern for many retirees, and rightfully so. The challenge is to strike a balance between enjoying your retirement now and ensuring your retirement savings last. Here’s how we approach it:

First, we work on sustainable income planning so you have a clear strategy for drawing income without depleting your assets too quickly. Then, we integrate growth investments to help your portfolio continue growing, offsetting inflation risk over the years.

We also incorporate options like a lifetime annuity, which can provide guaranteed income for as long as you live, offering peace of mind that your essential expenses are covered. Additionally, we consider your living costs, ensuring your income streams match your lifestyle and help you maintain financial security.

Finally, we focus on withdrawal strategies, ensuring you draw from the right accounts at the right time to maximise tax benefits and keep your investments working for you. With our guidance, you’ll have a plan that adapts as your life and needs evolve, giving you the confidence to enjoy your retirement without financial anxiety.