Most people assume that the more money they accumulate before retirement, the more peace of mind they’ll have during it.
However, research commissioned by the Australian Securities and Investments Commission (ASIC) on retirement planning and the readiness gap, found that 48% of Australians aged 50 to 66 worry they will run out of money in retirement, while only 41% feel confident or very confident about managing their retirement finances.
For women, that confidence gap is even wider. Only 23% feel confident they will be able to live comfortably in retirement, compared with 36% of men.
Retirement, however, is not the end of financial management. Before retirement, the focus is on growing your superannuation, investments and other assets. As you approach and move through retirement, the focus typically shifts from primarily accumulating wealth to balancing capital preservation, income and continued growth.
Generating a sustainable income, managing risk, and preparing for your future needs become increasingly important. This is why ongoing retirement planning and working with a financial planner remain valuable well beyond your final day at work.
Transitioning from accumulation to preservation
During your working years, wealth creation follows a fairly straightforward formula: earn, save, invest and let time and compounding do the rest. But once regular employment income stops, retirees become acutely aware that the ability to recover from a financial setback becomes more difficult.
Priorities therefore shift towards preserving capital and maintaining enough liquidity while generating a sustainable income to support your needs and desired lifestyle. Once you start drawing an income, though, it’s natural to worry about your capital shrinking faster than anticipated.
Drawing on your retirement savings doesn’t necessarily mean growing wealth stops. That’s why financial planning during retirement remains crucial, helping you protect wealth while living on a comfortable income.
While a diversified portfolio can help balance growth potential and investment risk, it’s also worth keeping in mind that retirement can last 20, 30 or more years. A portfolio that’s too conservative too early may struggle to keep pace with rising inflation over that time.
A financial planner who specialises in retirement planning can help you develop an investment strategy that reflects your lifestyle needs, risk tolerance and a realistic time horizon.
Balancing growth and income in retirement
For many, the transition into retirement is often handled in one of two ways: spending too much in the early years of retirement or restricting spending because of a fear of running out of money.
Neither approach tends to serve retirees well. Spending too freely early on can leave a shorter runway for the later years, when health and aged care costs may rise. Being overly cautious, on the other hand, can mean missing out on the retirement lifestyle you spent decades saving for.
The goal is to find a sustainable balance, one that allows you to enjoy a comfortable lifestyle today while continuing to manage your capital for the years ahead.
A Gold Coast financial adviser can develop a financial plan that may include:
- Investment strategies designed to balance growth, income and your risk tolerance.
- Income planning that draws from multiple sources, such as superannuation, investments and the Age Pension if applicable.
- Tax-efficient strategies, such as structuring income streams and timing withdrawals in a way that aims to reduce your tax burden.
- Building cash reserves to cover unexpected expenses without having to make withdrawals from investments.
- Scenario planning based on projected inflation and living costs on the Gold Coast, with adjustments to your income strategy where appropriate.
- Contingency planning for significant future expenses, including medical and aged care costs.
- Legacy and estate planning to protect your wealth for the next generation.
- Regular reviews and adjustments to your retirement plan to account for changes in markets, legislation, your financial position and lifestyle.
A good plan considers both today’s lifestyle needs and the potentially long stretch of retirement ahead, helping to remove some of the guesswork and provide a greater sense of reassurance about your financial future.
How a financial planner can simplify your retirement finances
By the time you retire, you may have superannuation, pensions, investment portfolios, property and cash holdings, each with different considerations around access, investment risk and tax treatment.
For example, income drawn from superannuation in retirement may be treated quite differently from income from an investment property or a term deposit. Decisions about your assets – such as selling an investment or changing how you draw your retirement income – may also affect your overall tax position or eligibility for government benefits such as the Age Pension.
Managing these financial complexities yourself can be confusing and increase the risk of making decisions in one area without considering the implications in another.
A financial planner specialising in retirement planning can help bring these elements together into a single, coordinated plan. Rather than managing each asset or decision in isolation, a financial planner can help you see the broader picture, including where your income comes from, how your assets are invested, the tax implications of different decisions and how your strategy may need to evolve as you move through retirement.
If you need retirement planning guidance, we can help. Contact RFS Advice to speak with one of our experienced Gold Coast financial advisers about creating a sustainable strategy that supports your lifestyle today while planning for your needs tomorrow.
Frequently asked questions
The Association of Superannuation Funds of Australia (ASFA) suggests that, at age 67, a single person needs around $630,000 in retirement savings and a couple needs a combined $730,000 to support a comfortable retirement – based on ASFA’s March quarter 2026 estimates. However, what counts as “comfortable” varies from person to person and depends on factors such as your desired lifestyle, where you live, housing costs, health and aged care needs, and other assets and income sources.
There’s no simple answer, as it depends on several factors. But common strategies include building investment portfolios that balance growth and risk, drawing income at a sustainable rate, and reviewing and adjusting your plan as market conditions, living costs and your needs change. A financial planner can help tailor these strategies to your specific situation.
Growing wealth focuses on increasing the value of your assets over time, often accepting more investment risk in the process. Preserving wealth shifts the focus towards protecting what you’ve accumulated, while generating enough income and growth to support your needs throughout retirement.
Common risks include higher than projected inflation, market volatility affecting investment growth, unexpected expenses, rising healthcare and aged care costs and outliving your savings. These can put pressure on your retirement savings if they haven’t been factored into your financial planning.
General advice warning:
The information and any advice provided in this article has been prepared without taking into account your objectives, financial situation or needs. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to those things.
