Financial planning for retirees: making your money last

One of the biggest concerns we hear from clients is, “How do I make sure I don’t run out of money in retirement?”.

The truth is your retirement savings need to last as long as you do. Poor financial planning for retirees can leave people short without realising it until it’s too late. That’s why having a solid strategy is essential.

At Precision Wealth Management, we build tailored financial strategies to keep you financially secure. Here’s what you need to know about managing your income for the long haul.

Can you use your home to fund your retirement?

For many Australians, their home is their biggest asset. If you need to unlock equity in retirement, there are a few options:

• Downsizing – selling your home and buying something smaller or cheaper can free up cash. You can also put up to $300,000 per person into super tax-free. But downsizing doesn’t always mean having more money, so it’s important to plan carefully.
• Reverse mortgage – you can borrow against your home’s equity without selling, but it means less for your estate when you pass.
• Renting out a room – if you have extra space, renting it out can provide extra income, but it may impact your Age Pension entitlements.

Working in retirement: can you work part-time and still receive benefits?

Many retirees choose to keep working part-time to maintain their lifestyle and stay active. But it’s important to understand how extra income affects your finances.

• You can earn up to $180 per fortnight (single) or $320 per fortnight (couple) before your Age Pension is reduced, however this also includes income from your investments
• The Work Bonus lets you earn from employment income an extra $300 per fortnight before your pension is affected.
• If you’ve reached your preservation age, you can draw from your super while still working using a Transition to Retirement strategy.

Understanding tax in retirement

Your tax obligations depend on where your income comes from. Here are a few pointers:

• The Age Pension is taxable however if it is your only source of taxable income, you will not need to pay tax on it.
• Superannuation withdrawals and pension payments after 60 are also tax-free.
• Other income, such as rental properties or investments, may be taxable—but with the right financial structure, you can minimise how much you pay.

The biggest retirement risk you need to know

Sequencing risk. Most people don’t know about it, but it’s one of the biggest dangers in retirement.

If you get bad investment returns in the early years of retirement, it can wipe out your savings faster than expected. That’s why investment strategies for retirees are so critical when you’re in your 60s.

We build a strategy that protects your portfolio against volatility and risk. Our investment strategy & advice in retirement are based on academic research and proven results, not guesswork or commissions.

Smart money strategies in retirement

• Invest wisely – a balanced mix of investments can provide a steady income while managing risk.
• Budget realistically – retirement is a trade-off; you need to balance spending with sustainability.
• Use a structured retirement income plan – the right strategy can optimise your super, pension, and investments to ensure long-term security.
• Adjust as needed – retirement isn’t set-and-forget. You need to review and tweak your financial plan as life changes.

Financial planning for retirees

Many retirees think, “I’ll figure it out when I get there”, but by then, it might be too late to make the right moves.

Smart financial planning for retirees strategy means you can enjoy life without the fear of running out of money. And that’s what we do at Precision Wealth Management – help you build a plan that keeps you financially secure, no matter what happens.

Want to make sure your money lasts? Book a chat with us today.

DISCLAIMER – The information provided in this blog is general and does not consider your individual financial needs or objectives. It does not constitute personal advice. We recommend seeking out professional and independent financial, legal and tax advice which has been designed for your individual situation before acting on any information contained below.