IFA Awards for Excellence – August 2014

Cash Rate

What a Cash Rate Cut Means for Your Retirement in Perth

And why it might be time to review your strategy.

If you’re starting to think seriously about retirement, or you’re already counting down the years, you’re probably paying closer attention to how the economy is tracking. But what about the cash rate? It’s a term that gets thrown around a lot, especially when the Reserve Bank of Australia (RBA) makes a move. But if you’re in your 50s or early 60s and planning for retirement in Perth, what does a cash rate cut really mean for you?

Let’s break it down and talk about how it could impact your income, your investments, and your long-term lifestyle plans.

First, a Quick Refresher: What Is the Cash Rate?

The cash rate is set by the RBA and acts as the benchmark interest rate for lending across the country. When it drops, banks typically lower the rates they charge borrowers and the rates they offer savers.

In short: a cash rate cut tends to make borrowing cheaper and saving less rewarding. That shift can flow through to mortgages, term deposits, superannuation returns, and even the broader investment market.

If you’re a pre-retiree in Perth, with one eye on your super and the other on your future lifestyle, understanding this impact is more important than ever.

How It Affects Your Income in Retirement 

If you’re planning to transition into retirement over the next few years, a cash rate cut can change how much income your retirement savings generate.

That’s especially true if:

  • You’re relying on term deposits or savings accounts to provide some of your income 
  • You’re planning to move your super into a more conservative allocation as you get closer to retirement 
  • You’re considering a pension stream that draws income from cash or fixed interest assets 

Lower interest rates mean these strategies may not stretch as far as you’d hoped and could affect how long your retirement savings last.



Why Your Investment Strategy May Need a Rethink 

Many pre-retirees gradually shift into more conservative investments to preserve capital. But in a low-rate environment, being too conservative can limit your long-term growth.

That doesn’t mean chasing risk. It means making sure your portfolio is balanced in a way that supports both security and sustainability.

Now might be the right time to review:

  • Your superannuation mix and how it’s positioned for both growth and protection 
  • Whether your current investment strategy still suits your retirement goals 
  • How much income do you realistically need, and whether your current plan delivers that 

At LIFE Financial Planners in Perth, we help people in this stage of life find that sweet spot, so your retirement strategy doesn’t just look good on paper — it actually supports the lifestyle you want.

What About Property and Debt? 

If you’re still paying off your home or holding an investment property, a lower cash rate could mean lower repayments. That’s good news for reducing debt before retirement.

But it can also influence:

  • Property values, which may impact when or whether you downsize 
  • The cost of borrowing if you’re thinking about taking on a new investment loan 
  • Your cash flow planning, especially if you’re balancing mortgage repayments with super contributions.

It’s all interconnected, and it’s worth making sure these moving pieces are still working in your favour.

Should You Be Doing Anything Right Now?

A rate cut doesn’t mean you need to make sudden moves. But it’s a good prompt to review the strategy you already have in place and whether it’s still fit for purpose.

You might want to ask:

  • Is my retirement income plan still on track?
  • Is my super growing in line with my retirement timeline?
  • Should I reassess my risk tolerance as market conditions shift?
  • Could I be missing opportunities to maximise contributions or reduce tax? 

Your Opportunity 

Whether you’re five years away from retiring or thinking about stepping back sooner, now is a great time to pause, reflect, and ask:

Are your finances still set up to support the lifestyle you want in retirement, even if the market changes again?  At LIFE Financial Planners, we help people all over Perth turn uncertainty into opportunity. 

Traveling

What Does a Financial Planner Do For You? 

If you’ve ever Googled “Do I need a financial planner?”, you’re not alone. Many people in Perth are quietly wondering the same thing, especially when life gets busy, complex, or just a little overwhelming financially.

It’s not always about having a big salary or preparing for retirement tomorrow. Sometimes, it’s about wanting more clarity, more structure, and more confidence in the decisions you make today. That’s where a financial planner can help.

But what do we actually do? And is financial advice really worth it for someone like you? Let’s take a closer look.

A Financial Planner Helps You Understand the Big Picture 

At its core, working with a financial planner in Perth is about understanding your current financial picture, not just where your money goes, but where you want it to take you.

A good planner doesn’t just offer you a one-size-fits-all solution. They start by getting to know your goals, your concerns, and what peace of mind looks like for you.

Whether it’s owning your first home, getting on top of cash flow, planning a comfortable retirement, or simply making better use of your income, financial advice helps you make confident decisions across every life stage.

Here at LIFE Financial Planners in Perth, we specialise in making that journey clearer, calmer, and completely personalised to you.

Financial Planner helping retired couple live their dream

But Isn’t That What a Financial Advisor Does? 

In Australia, financial planner and financial advisor are often used interchangeably. Both terms refer to licensed professionals who provide financial advice. The important thing is that the person you choose is qualified, ethical, and puts your best interests first.

Our team at LIFE Financial Planners are Perth-based financial advisors, fully licensed, transparent, and here to guide you with care, not pressure.

What Do We Help With?

When most people think of a financial planner, the first thing that comes to mind is usually superannuation or retirement, and while those are important, they’re just one part of the bigger picture.

At LIFE Financial Planners, we’re here to support the whole of your financial journey, not just the finish line. We work with people across Perth who want more clarity, more confidence, and more control over where their money’s going and where their life is heading.

We help you:

  • Understand and structure your cash flow
    Ever feel like your income looks good on paper, but somehow there’s never quite enough left at the end of the month? We’ll help you get a clear picture of your money, what’s coming in, what’s going out, and how to redirect it toward what actually matters to you.
  • Make your superannuation work harder
    Super is one of your biggest long-term assets, but for many people, it just sits there,  unmanaged and underperforming. We help you review your fund, align your investments with your goals, and make sure your super is actively growing your future.
  • Build an investment strategy that suits you
    Whether you’re just getting started or looking to grow your wealth, we’ll help you design an investment approach that fits your goals, timeframe, and comfort with risk — no jargon, no guesswork, and no one-size-fits-all portfolios.
  • Protect the things (and people) you love
    We’ll work with you to assess and arrange personal insurance cover that actually suits your needs — from life insurance to income protection — without you paying for unnecessary extras or outdated policies.
  • Navigate life’s big (and unexpected) changes
    New job? New baby? Starting over after separation or dealing with the loss of a loved one? Big life shifts can throw your finances into uncertainty, but with the right support, they can also be a chance to rebuild stronger.
  • Plan for retirement — your way
    Retirement isn’t a finish line; it’s the start of a whole new phase of life. We help you plan not just for what you’ll need but for the life you want — whether that’s more time with the grandkids, traveling around WA, or simply having peace of mind.

And perhaps most importantly, we’re in it with you for the long haul. Life changes. Your goals shift. And your financial plan should grow with you. That’s why we offer ongoing financial advice tailored to your journey — so you always feel supported, no matter what stage of life you’re in.

When Is the Right Time to Work with a Financial Planner?

There’s no perfect time to see a financial planner — and honestly, if you’re waiting for a big moment or milestone to “qualify”, you might be waiting too long.

The truth is, the best time to seek advice is whenever you feel unsure, overwhelmed, or ready to take control. It’s not about having everything lined up. It’s about wanting more clarity, confidence, and direction.

You might be:

  • Juggling young kids, a mortgage, and career pressure, and wondering how to plan for your family’s future without burning out in the present.
  • Thinking about buying your first home and unsure how to save for a deposit, manage your spending, or structure your loan?
  • Earning a decent income but noticing that it disappears faster than it should and unsure where it’s really going.
  • Heading toward retirement and starting to question whether your super will really be enough to give you the lifestyle you’re dreaming of.
  • Recently separated or navigating the loss of a loved one, suddenly responsible for finances you didn’t manage before.
  • Running a small business and struggling to balance tax planning, personal savings, and future growth.
  • Feeling like you should have it “together” by now, but still living paycheck to paycheck with no long-term plan in place.

Even if nothing major is happening — even if things are okay — a financial planner can help you make the most of it.

Because “okay” isn’t a plan. And when you get the right guidance early, you build something stronger for every chapter ahead.

Let’s Make a Plan That Works for You 

Here in Perth, we work with people at every life stage — not just retirees or high earners. If you have goals, questions, or even just a gut feeling that something could be working better, now’s the time to have that conversation.

Get in touch with LIFE Financial Planners and let’s plan a future that works for you clearly, confidently, and on your terms.

Managing Your Legacy: A Thoughtful Guide to Estate Planning

Australia is in the midst of a major generational wealth transfer. With over $3.5 trillion projected to be passed down from baby boomers to their children and grandchildren, families across the country are being presented with opportunities—and responsibilities—that will shape their futures for decades to come.

But with great wealth comes great risk. Studies, like the 25-year research conducted by The Williams Group, show that 70% of family wealth is lost by the second generation, and a staggering 90% disappears by the third. While these statistics stem from the U.S., the pattern is just as relevant in Australia. Whether due to inadequate planning, family conflict, or a lack of financial literacy, legacies often unravel before they can create a lasting impact.

So, how do you preserve your financial, emotional, and spiritual wishes so that they empower future generations? The key lies in strategic estate planning, clear communication, and expert support.

Understanding the Importance of Responsible Estate Planning

Managing your legacy can feel like an overwhelming responsibility, but it’s a step that many of us will face at some point in our lives. Whether it’s sorting through assets, making important decisions about the distribution of their estate, or addressing financial obligations, the process is often emotional, and it requires careful thought and planning.

The first thing to understand is that a legacy isn’t just about inheriting possessions or financial assets. It’s about preserving your values, memories, and intentions that you wish to leave behind.

Like any significant financial decision, managing a legacy requires a plan. Being responsible means understanding the complexities of your estate, whether it involves property, investments, or business interests, and considering the practical side, such as taxes, debts, and potential family conflicts.

By taking proactive steps, you can ensure that your wishes are respected, your legacy is protected, and you’re setting your family up for long-term financial stability.

Assessing Your Financial Situation

Before making any major decisions, it’s crucial to have a clear picture of your financial situation. This might seem daunting, especially if you haven’t reviewed your finances in detail before, but taking it step-by-step can bring clarity.

Start by gathering key documents like wills, trusts, insurance policies, investment records, and bank statements. This will give you an overview of your assets, liabilities, and any outstanding debts. If there are business interests or properties that require ongoing attention or potential tax implications, make sure to address them now.

This step might be overwhelming, but it’s essential to ensure your legacy is properly protected. Consider working with a trusted financial planner who can help you take a thorough look at your situation. With the right advice, you’ll be in a much better position to make informed decisions.

Making Thoughtful Decisions About Estate Distribution

Once you have a clear view of your finances, the next step is deciding how to distribute your estate. This is often a deeply personal decision and should reflect not only the value of your assets but also your intentions for them. Think about how you want your wealth to support your loved ones and any causes that matter to you.

When deciding on asset distribution, consider whether there are specific items, such as family heirlooms, real estate, or investments, that should be passed on to certain people or charities. This is the time to think through how you want to divide both financial and sentimental assets in a way that aligns with your values and wishes.

Taking the time to consider these details can avoid future conflicts and ensure that your legacy is passed on in the way you envision. Whether it’s ensuring certain family members are supported or setting aside resources for charitable causes, being thoughtful in your approach will allow your estate to reflect your values, both financial and personal.

Navigating the Legal Aspects of Estate Management

Estate management involves more than just making decisions about what happens to your assets; it also requires understanding and navigating the legal framework around your estate. It’s essential to ensure that your estate plan is legally sound and reflects your true wishes. This starts with ensuring that your will or trust is up to date and legally binding.

If you have complex assets like businesses or real estate, it may be wise to create a trust to manage them effectively. The legal process also involves understanding the potential tax implications of your estate and how to minimise them.

It’s essential to work with a professional to ensure that your estate is structured in a way that honours your wishes while avoiding legal complications down the line. This may involve revisiting your will or trust, ensuring beneficiaries are correctly designated, and preparing any necessary documents for asset transfer. Taking care of these legal aspects early on will save your family from potential challenges later.

Protecting Your Legacy for Future Generations

Once you’ve navigated the initial stages of managing your estate, it’s time to think about how to protect your legacy for future generations. This goes beyond safeguarding your financial assets, it’s about ensuring that the values, traditions, and memories that have been important to you continue to be honoured.

Consider establishing family trusts or clear guidelines on how your wealth should be managed and used in the future. You may also wish to designate certain family heirlooms or make charitable donations in your name, which can have a lasting impact. These actions can ensure that your legacy isn’t just about wealth but also about leaving behind meaningful contributions for your family and the wider community.

Additionally, think about how your wealth may continue to grow. Consider how investments or real estate can be managed and preserved to ensure long-term stability for future generations. The goal is not just to pass on wealth but to lay the foundation for the future prosperity of your loved ones.

Seeking Professional Guidance

At LIFE Financial Planners, we understand that estate planning can be overwhelming, but you don’t have to navigate it alone. Our expert West Perth team is here to guide you through every step of the process, ensuring your wishes are carried out and your legacy is protected for future generations. Whether it’s optimising asset distribution, minimising tax liabilities, or addressing any legal considerations, we provide tailored advice to make it as seamless as possible.

Your legacy deserves the attention of experts who understand your unique needs. Contact LIFE Financial Planners today, and let us help you secure your future and the future of those you love.

Financial Advisor in Perth

Creating a Retirement Bucket List That Fits Your Budget in Perth

It’s the time to slow down, soak it in, and finally enjoy the things you’ve been putting off, whether that’s taking a coastal road trip, learning something new just for fun, or spending more time with the people who matter most. And while it’s exciting to think about what’s next, it’s also important to make sure your finances can support the lifestyle you’re dreaming of.

That’s where thoughtful retirement planning comes in. With the right guidance from a trusted Perth financial advisor, you can build a plan that’s realistic, flexible, and focused on what matters most to you.

Why a Bucket List Matters More Than You Think

Too often, retirement planning focuses solely on numbers: how much you’ve saved, how long it will last, and what you need to live on. But the emotional side of retirement is just as important.

A well-thought-out bucket list brings direction, purpose, and even joy to your retirement years. It helps you stay active, socially connected, and mentally engaged. And when it’s tied to a clear financial plan, it gives you the confidence to enjoy what you’ve worked so hard for.

In our experience as Perth financial advisors, retirees who map out what they want to experience, not just what they need to afford, often feel more fulfilled and less anxious about money.

Start With What Matters Most

Building your retirement bucket list isn’t about cramming in every dream at once. It’s about identifying what matters most to you.

Ask yourself:

  • What have I always wanted to do but never had the time for?
  • Are there any places I’ve dreamed of visiting?
  • What kind of lifestyle do I want to maintain day to day?
  • How do I want to spend my time with family and friends?
  • Are there any personal goals or new skills I’d love to explore?

Write everything down: big dreams, little pleasures, once-in-a-lifetime adventures, and quiet moments you want to create. Your list doesn’t have to be extravagant. It just needs to reflect you.

Aligning Your Bucket List With Your Budget

Once you’ve built your dream list, the next step is working out how it fits into your financial reality. This is where retirement planning becomes powerful.

At LIFE Financial Planners, we often help clients map their lifestyle goals against their cash flow and superannuation strategies. Some goals may be easily achievable right away, while others might need more time, planning, or adjustment.

Here are a few things we help you consider:

  • What income streams will be available to you in retirement?
  • What is a sustainable withdrawal rate for your investments?
  • Can you prioritise high-impact, lower-cost experiences?
  • Is it worth adjusting the timing of certain goals to make them more affordable?

We also help you break your goals down into short-term, mid-term, and long-term plans—so your bucket list feels realistic, not rushed.

Local Adventures That Won’t Break the Bank

You don’t have to fly to Paris or sail the Mediterranean to tick meaningful things off your list. Some of the best experiences might be right here in Perth.

A few local favourites our clients often include are

  • Exploring WA’s Coral Coast or Margaret River on a road trip
  • Taking a cooking class or art workshop through community centres
  • Volunteering for causes close to your heart
  • Weekends spent discovering hidden gems in the Perth Hills
  • Joining active seniors’ groups for fitness and social connection

These kinds of experiences bring richness and connection to retirement, and many come at little or no cost.

Protecting the Plan as You Go

Even with the best-laid plans, life happens. Markets shift. Unexpected expenses come up. Health can change. That’s why flexibility is key to a financially sustainable bucket list. Working with an experienced Perth financial advisor allows you to revisit and revise your goals as circumstances change. We’ll help you:

We’ll help you:

  • Adjust your spending without sacrificing what matters most
  • Keep your income plan aligned with your lifestyle needs
  • Maintain a safety net for peace of mind

The goal isn’t just to tick things off a list—it’s to create a lifestyle that continues to feel exciting, rewarding, and financially stable throughout retirement.

Let a Perth Financial Advisor Help You Make It Happen

At LIFE Financial Planners, we’re here to make sure your retirement is not only secure but deeply satisfying. As a Perth financial advisor team specialising in retirement planning, we help you take control of your future with clarity, strategy, and zero guesswork.

Whether retirement is around the corner or already underway, it’s never too early (or too late) to start dreaming and planning. Your retirement should feel like the reward it is. Contact us below.

Financial Planning for Couples

Financial Planning for Couples: Best Practices for Retirement in Perth

Retirement is a major life transition, and planning it together as a couple is key to ensuring financial security and the lifestyle you envision. At LIFE Financial Planners, we work with Perth couples to help them create a tailored retirement plan that aligns with their goals. The right strategies can make all the difference in how comfortable and stress-free your retirement will be.

Financial Planning Strategies for Perth Couples

Superannuation

Your super is one of your most powerful tools for retirement planning as a couple. Here are some key strategies to ensure both partners are maximising their retirement savings.

Contribution Splitting

Balancing superannuation between partners can be an effective long-term strategy. You can transfer up to 85% of concessional contributions from one partner’s super to the other’s. This is particularly useful if there’s a large difference in balances, helping to even out super savings and potentially reducing tax burdens in retirement.

Spouse Contributions

If one partner earns less than $40,000 per year, the other can contribute up to $3,000 to their super and receive a tax offset. This strategy helps boost the lower-earning partner’s retirement savings while providing tax benefits.

Downsizer Contributions

Thinking about selling your home? If you’re over 55, each of you can contribute up to $300,000 from the sale proceeds into your super. This can significantly boost your retirement savings, giving you more flexibility in how you enjoy retirement. Learn more about Downsizer Contributions.

Creating a Shared Financial Vision

Aligning Goals

We always encourage couples to sit down and discuss their retirement goals—whether that means travel, downsizing, or simply maintaining their current lifestyle. Having a clear, shared vision helps you make informed financial decisions and ensures both partners are on the same page.

Age Pension Considerations

Your combined income and assets affect your eligibility for the Age Pension. Structuring your superannuation correctly, such as keeping more in the younger spouse’s super, can help improve your entitlements. Understanding these nuances can help you make the most of available government support. Visit the Age Pension page for more information.

Regular Financial Reviews

Your financial situation will change over time, whether due to market shifts, health considerations, or new opportunities. Regularly reviewing your retirement strategy with a financial planner ensures you stay on track and adapt to changes as they arise.

Estate Planning Essentials

Retirement planning isn’t just about growing wealth; it’s also about ensuring your assets are protected and distributed according to your wishes. Here’s what couples should consider when structuring their estate plans. Read more about creating a will in Australia.

Wills and Beneficiary Nominations

Ensuring your wills and superannuation beneficiary nominations are up to date means your assets will be distributed according to your wishes. We can help you navigate the complexities of estate planning to protect your legacy.

Powers of Attorney

It’s essential to have financial and medical powers of attorney in place to ensure that decisions can be made if one partner becomes unable to do so.

Testamentary Trusts

For those wanting to provide for a surviving spouse while managing obligations to other family members, testamentary trusts can be a smart option. These allow for the structured distribution of assets, offering both security and flexibility.

Lifestyle Planning for a Fulfilling Retirement

Shared Pursuits

Retirement is about more than just finances—it’s also about enjoying life together. Whether it’s travel, hobbies, or community involvement, planning for shared activities can help keep your retirement fulfilling and rewarding.

Different Retirement Timelines

If one partner plans to retire earlier than the other, it’s important to consider how this will impact your finances. Planning ahead ensures a smooth transition and financial stability during different life stages.

Health and Longevity

As part of your retirement planning, we consider potential healthcare costs, long-term care, and life insurance needs. Factoring these in early can prevent financial stress later on.

Getting Started with Expert Guidance

At LIFE Financial Planners, we help Perth couples take control of their financial future. Retirement planning isn’t just about numbers; it’s about ensuring you have the means to live the life you’ve worked so hard for.

If you and your partner are ready to take the next step in securing your future, we’re here to help. Book a consultation today, and let’s start planning your retirement in Perth, together.

How to Avoid Common Retirement Planning Mistakes in Perth 

Retirement in Perth should be a time to relax and enjoy the rewards of your hard work, but without the right planning, you could find yourself financially unprepared. From missing out on government benefits to underestimating living costs, small mistakes can have a big impact on your financial security. The good news? With the right strategies in place, you can avoid these pitfalls and enjoy a comfortable retirement.

At LIFE Financial Planners, we help you navigate the complexities of retirement planning, ensuring you make informed decisions that maximise your income and secure your financial future. Below, we outline some of the biggest mistakes to watch out for and how you can avoid them.

Waiting Too Long to Start Retirement Planning

The Age Pension is designed to support older Australians by supplementing retirement income, yet many retirees delay applying, often assuming they won’t qualify or should use it as a last resort. Delaying means missing out on compound interest, tax-efficient contributions, and potential government benefits. The earlier you start, the better prepared you’ll be.

What to Do Instead: 

  • Start contributing to your superannuation early; even small amounts add up over time.
  • Consider salary sacrificing to boost your retirement savings while reducing taxable income.

Your Age Pension age depends on your birthdate: 

Your Birth Date Age Pension Age 
1 July 1952 – 31 Dec 1953 65 years, 6 months 
1 Jan 1954 – 30 June 1955 66 years 
1 July 1955 – 31 Dec 1956 66 years, 6 months 
On or after 1 Jan 1957 67 years 

Underestimating How Much You’ll Need

Many retirees assume their expenses will decrease in retirement, but rising healthcare costs, inflation, and lifestyle choices can quickly eat into savings.

What to Do Instead: 

  • Account for inflation; what costs $50,000 per year now might require $80,000 in 20 years.
  • Have a buffer for unexpected expenses, such as healthcare and home maintenance.
  • Read the ASFA Retirement Standard

Forgetting to Apply for Concession Cards

The Mistake: 

Many retirees in Perth qualify for concession cards that provide discounts on medical expenses, utilities, public transport, and more, but they never apply.

How to Avoid It: 

Check if you’re eligible for benefits such as the Commonwealth Seniors Health Card via Services Australia. These cards can significantly reduce your expenses and ease financial pressure in retirement.

Failing to Maximise Your Superannuation

Your superannuation is one of your most powerful retirement tools, yet many people don’t make the most of it. Without proper planning, you might miss out on employer contributions, government co-contributions, or strategic investment options.

What to Do Instead: 

Withdrawing Your Superannuation Too Quickly 

Once you retire, you’ll need to decide how to access your super. Many retirees withdraw a lump sum, only to find their savings dwindle faster than expected.

What to Do Instead: 

  • Set up a retirement income stream instead of withdrawing everything at once (internal link to drawdown strategies). 
  • Work with a financial planner to develop a sustainable withdrawal strategy.

Overlooking the Age Pension and Other Benefits 

Many retirees assume they won’t qualify for government support, leaving money on the table. The Age Pension, Commonwealth Seniors Health Card, and other concessions can help supplement your income. 

What to Do Instead: 

Not Factoring in Healthcare Costs 

Medical expenses increase with age, yet many retirees don’t plan for rising health insurance premiums, medications, or specialist care.

What to Do Instead: 

  • Budget for increasing private health insurance costs. 
  • Consider long-term care insurance to cover potential aged-care needs.
  • Set up a dedicated healthcare savings fund. 

Mismanaging Investments in Retirement 

A common mistake is shifting all investments into low-risk assets too early, limiting potential growth.

What to Do Instead: 

  • Maintain a balanced portfolio that considers growth, income, and liquidity. 
  • Consult with a financial planner to create a diversified investment strategy 
  • Regularly review your investment performance to ensure it aligns with your retirement goals. 

Failing to Adjust Your Plan as Life Changes

Retirement isn’t static; your financial situation, health, and personal goals will evolve. Many retirees make the mistake of setting and forgetting their plans. 

What to Do Instead: 

  • Schedule annual reviews with a financial planner to adjust your plan (internal link to book a review). 
  • Stay informed about superannuation changes, tax laws, and government benefits.
  • Update your estate plan to ensure your wishes are honoured.

How LIFE Financial Planners Can Help 

At LIFE Financial Planners, we help Perth residents navigate the complexities of retirement with tailored financial strategies. Our expert team ensures you stay informed about government benefits, investment options, and tax-efficient retirement income streams. Whether you’re just starting to plan or need to refine your existing strategy, we’re here to help you retire with confidence.

Let’s start planning for the retirement you deserve; contact our West Perth team today at (08) 9322 1882 to schedule your first complimentary consultation and take the first step.

What Happens If You Outlive Your Super?

You’ve worked hard to build your superannuation, but have you ever wondered—what happens if it’s not enough?

Retirement should be a time to enjoy the rewards of a lifetime of effort, but one of the biggest concerns many Australians face is whether their super will last. With people living longer and the cost of living rising, ensuring your retirement savings go the distance has never been more important.

So, what are the risks, and how can you plan ahead to protect your financial future?

Could You Outlive Your Super?

It’s easy to think of retirement as a long, stress-free holiday, but many retirees worry about making their savings last. Research from the Association of Superannuation Funds of Australia (ASFA) found that more than 90% of people aged over 80 had no super left in the last four years of their lives.

Women, in particular, are more financially vulnerable—only 15% of females over 60 pass away with any super savings.

If your super runs out, you may need to rely on the Age Pension. While it provides a safety net, it’s designed to cover only the basics and may not support the lifestyle you envisioned.

What Increases the Risk of Running Out of Money?

Several factors can impact the longevity of your super, including:

  • Living longer than expected: More years in retirement means more years of expenses.
  • Market fluctuations: Your super is invested, and downturns can affect your balance.
  • Inflation: Rising costs can erode your purchasing power if your investments don’t keep up.
  • Unexpected expenses: Health issues, aged care, or helping family members—can drain your savings faster.
  • Retiring too early: Accessing super before you’re financially prepared can shorten how long it lasts.

How to Make Your Super Last Longer

The good news? There are strategies to help safeguard your financial future, whether you’re still working or already retired.

If You’re Already Retired:

  • Be mindful of withdrawals: You only need to take out the minimum drawdown amount from your account-based pension unless you need more for expenses.
  • Maximise government support: You may be eligible for the Age Pension, Seniors Card, or other concessions that reduce your expenses.
  • Consider additional income streams: An annuity or other investment income can help supplement your super.
  • Keep your investments working for you: A well-balanced investment strategy can help you grow your savings and keep up with inflation.

If You’re Still Working:

  • Boost your super while you can: Salary sacrificing or making after-tax contributions can give your super a serious boost.
  • Consider a Transition to Retirement (TTR) strategy: If you’ve reached preservation age and are still working, this can help grow your super while managing tax.
  • Plan ahead: Thinking about retirement three to five years before you stop working allows you to fine-tune your finances and set yourself up for success.

Navigating Retirement with Confidence

Outliving your super savings isn’t inevitable; it’s a calculated risk that can be managed with the right planning. If you’re feeling unsure about your retirement savings, you’re not alone. At LIFE Financial Planners, we specialise in helping you and many other West Australians understand their options.

Let’s start planning for the retirement you deserve; contact our West Perth team today at (08) 9322 1882 to schedule your first complimentary consultation and take the first step.

What to Do When You Receive an Inheritance

What to Do When You Receive an Inheritance: A Comprehensive 7-Step Guide

Receiving an inheritance can be a life-changing moment, bringing both financial opportunity and emotional complexity. It’s a time to reflect, plan, and make informed decisions that align with your long-term goals. Whether you’ve inherited cash, property, shares, or other assets, taking a thoughtful approach can help you maximise the benefits while avoiding common pitfalls. 

At LIFE Financial Planners, we guide our clients here in Perth through these critical moments, ensuring their inheritance is managed wisely to create lasting financial security. Here’s our step-by-step guide on what to do when you receive an inheritance.

1. Take a Step Back Before Making Decisions

The first and most important step is to pause. Inheritances often come after the loss of a loved one, making it an emotional time. It can be tempting to make big decisions quickly—paying off debts, investing in property, or even making major purchases—but it’s essential to take a moment to assess your financial situation before taking action. 

Instead of rushing into decisions, consider setting the funds aside in a high-interest savings account while you explore your options. A well-thought-out plan will help ensure that your inheritance contributes positively to your financial future. 

Depending on the complexity of the estate, it can take six months to a year (or longer) before assets are fully distributed. If there is a legal process involved, such as probate, this can extend the timeline.

A helpful approach is to think of your inheritance in four categories:

  • Immediate needs: Covering expenses or obligations that require urgent attention.
  • Short-term goals: Planning for purchases or financial moves within the next 1–5 years.
  • Long-term growth: Investing for future financial security and wealth-building.
  • Legacy & philanthropy: Ensuring your wealth aligns with your values, whether that means supporting family or charitable giving.

2. Understand the Nature of Your Inheritance

Not all inheritances are received in cash. Inheritances come in many forms, and each type of asset has different financial implications: 

  • Cash: The simplest form of inheritance, but still requires careful planning.
  • Property: You may need to decide whether to keep, sell, or rent it out. There could also be tax implications.
  • Shares and Investments: Understanding market risks, potential capital gains tax, and diversification strategies is crucial.
  • Superannuation Benefits: If you’re a beneficiary of superannuation, specific tax rules may apply.
  • Business or Family Assets: Inheriting a business or family asset can come with responsibilities that need careful consideration.

Each type of asset carries different tax, legal, and financial planning considerations, making it essential to seek guidance before making major decisions.

3. Review Your Debts and Financial Priorities

It’s natural to consider using an inheritance to clear debts, but it’s not always the best financial move. While high-interest debts (such as credit cards and personal loans) should often be paid off first, low-interest debts—such as home loans—may require more strategic thinking.

For example, if your mortgage interest rate is low, investing your inheritance elsewhere may generate a higher return than simply paying off the loan. The key is understanding how your financial goals align with different strategies.

4. How Could Your Inheritance Affect Your Tax?

Unlike some other countries, Australia does not have an inheritance tax. However, certain assets can still create tax implications, particularly when they are sold or generate income.

Key tax considerations include:

  • Capital Gains Tax (CGT): If you inherit shares, property (other than the deceased’s main residence), or other investments and later sell them, CGT may apply. You may be eligible for concessions, such as the CGT exemption on a deceased’s main residence if sold within two years.
  • Superannuation death benefits tax: If you inherit superannuation as a non-dependent, a tax of up to 17% may apply to the taxable component of the benefit.
  • Tax on investment income: If your inheritance generates interest, dividends, or rental income, this will be added to your taxable income for the year.

Rather than leaving your inheritance in a low-interest bank account, consider putting it to work through strategic investments. Diversification is key. Investing across different asset classes can help manage risk while growing your wealth over time. 

Some options include:

  • Managed funds and shares: A way to generate returns while spreading risk.
  • Property investment: If appropriate, investing in property could provide rental income and capital appreciation.
  • Superannuation contributions: A tax-efficient way to boost your retirement savings.

An investment strategy should be built around your financial goals, time horizon, and risk tolerance.

5. Should You Invest Your Inheritance?

Rather than leaving your inheritance in a low-interest bank account, investing it wisely can provide long-term financial growth. Key investment options include:

  • Managed funds & shares: Diversifying across markets can provide strong returns over time.
  • Property investment: Rental properties can generate passive income, but it’s important to consider the costs involved.
  • Superannuation contributions: Making additional contributions to your super can provide tax advantages and strengthen your retirement savings.

Each option comes with benefits and risks, so understanding your risk tolerance and financial goals is crucial before investing.

6. Superannuation Contributions 

Superannuation is one of the most tax-effective ways to grow your wealth. If you have received a large sum of money, contributing some of it to Super could provide long-term benefits. 

Key considerations:

  • Concessional contributions (before tax) are capped at $27,500 per year (including employer contributions). 
  • Non-concessional contributions (after tax) have a higher cap but come with eligibility criteria. 
  • Investment earnings inside Super are taxed at just 15%, compared to personal investment income, which is taxed at your marginal rate. 

Before making contributions, ensure you’re aware of the annual contribution caps to avoid excess tax penalties.

7. Protecting Your Wealth: Reviewing Your Own Estate Plan

Once you’ve decided how to manage your inheritance, it’s important to review your own estate plan to ensure your assets are protected and passed on according to your wishes.

Key steps include:

  • Update your will to reflect new assets.
  • Review your beneficiaries on superannuation and life insurance policies.
  • Consider setting up a trust to protect assets for future generations

The Bottom Line: Seek Professional Advice

Managing an inheritance can be complex, and the right financial decisions depend on your unique situation, tax considerations, and long-term goals.

At LIFE Financial Planners, we specialise in intergenerational wealth transfer, helping you make smart financial choices that protect and grow your inheritance. Whether you need investment guidance, tax planning, estate structuring, or debt management strategies, our team is here to help.

Ready to make the most of your inheritance? Contact our West Perth team at LIFE Financial Planners today to start planning for your future.

How Much Money Do You Need to Retire in Perth? 

How Much Money Do You Need to Retire in Perth? 

Planning for retirement is one of the most important steps you can take to ensure a financially secure future. After years of hard work, you deserve a retirement where you can enjoy your time without constantly worrying about money. But how can you ensure your income lasts through retirement, especially with unexpected expenses and the rising cost of living in Australia? 

At LIFE Financial Planners in Perth, we’re here to guide you through the essential steps in creating a simple and effective retirement income plan. Exploring the key factors influencing common retirement needs, providing insights and examining how your retirement costs may vary.

The ASFA Retirement Standard 

The Association of Superannuation Funds of Australia (ASFA) offers a reliable framework known as the Retirement Standard, which provides benchmarks for what constitutes a “comfortable” and “modest” retirement based on annual living expenses. 

As of the June 2024 quarter, the estimates are: 

Comfortable Retirement: 

  • Singles: $52,085 per year 
  • Couples: $73,337 per year 

Modest Retirement: 

  • Singles: $33,134 per year 
  • Couples: $47,731 per year 

If you are aiming for a “comfortable” lifestyle, the ASFA recommends savings of: 

  • $545,000 for singles 
  • $690,000 for couples 

These figures assume you own your home outright and are eligible for a partial Age Pension to supplement your income. 

Average Super Balances in Australia 

Before you begin planning for your retirement, it’s helpful to understand how your superannuation balance compares to the national averages. According to the Australian Bureau of Statistics, here are the median super balances by age: 

Age Group Men (avg.) Women (avg.) 
25-34 years $42,100 $34,500 
35-44 years $107,700 $76,900 
55-64 years $326,200 $246,300 

For many Perth locals, these average balances may not meet the benchmarks needed for a comfortable retirement. But the good news is, there are proactive steps you can take to close the gap and put yourself on track for a secure retirement.

How Much Super You May Need to Retire on $50,000, $70,000, $90,000, or $100,000 a Year? 

Planning your retirement savings starts with understanding your desired annual income in retirement. Below is a guide based on retiring at different ages and living off varying annual incomes: 

Annual Income Retirement Age 60 Retirement Age 67 
$50,000 $831,748 $665,666 
$70,000 $1,164,447 $931,932 
$90,000 $1,497,146 $1,198,198 
$100,000 $1,663,496 $1,331,331 

The above figures assume your savings will need to last until age 85. Retiring later requires less savings, as your super is spread across fewer years. It’s important to consider lifestyle adjustments and long-term goals when determining your retirement age and income. 

How to Work Out How Much Money You Need for Retirement 

Calculating your retirement number is essential for ensuring a comfortable and secure future. It involves evaluating three key factors: 

  1. The Annual Cost of Your Lifestyle in Retirement

Start by picturing your ideal retirement. Do you envision extensive travel, frequent dining out, or perhaps a simpler life closer to home? If you’re renting, this will also have a significant impact on your budget. Think about these three categories of expenses: 

  • Essentials: Food, utilities, transport, and basic healthcare. 
  • Nice-to-Haves: Dining out, local holidays, and hobbies. 
  • Luxuries: Overseas travel, caravans, or major home renovations. 

By creating a detailed retirement budget, you’ll establish a realistic savings goal that truly aligns with your dreams for retirement. 

  1. When You Want to Retire

The age at which you choose to retire plays a crucial role in how far your superannuation will stretch. Retiring earlier means your super needs to last longer while delaying retirement provides more time for contributions and investment growth. Consider your health, career aspirations, and lifestyle preferences to determine the best time for you to retire. 

  1. Your Life Expectancy

Australians are living longer than ever, meaning you could be looking at a retirement lasting 20–30 years, or more. It’s essential to plan for longevity, ensuring your savings can support you through the years ahead. Online calculators or a consultation with a financial planner can help you determine an appropriate life expectancy, providing a solid foundation for your retirement strategy. 

At LIFE Financial Planners, we’re here to help you calculate your retirement number and ensure your plan is designed with your unique needs in mind. We’ll work with you to make sure your retirement goals are not just dreams, but a reality.  

The Perth Perspective 

Living in Perth comes with its own set of advantages that can have a significant impact on your retirement planning. From relatively affordable property prices compared to cities like Sydney and Melbourne to a high standard of living and access to an incredible array of outdoor activities, Perth offers a lifestyle that can influence your retirement budget in a positive way. 

  • Housing Costs: If you own your home, your living expenses will be far lower than those renting in Perth’s suburbs, which means you have more flexibility in managing your retirement savings. 
  • Transport: With Perth’s extensive public transport system, the need for a car is reduced, saving you money on maintenance, fuel, and insurance. 
  • Lifestyle Choices: Your personal spending habits will play a key role in determining your retirement needs. 

The Bottom Line  

Planning for your retirement doesn’t have to be overwhelming. At LIFE Financial Planners, we understand that everyone’s retirement needs are different, which is why we take a personalised approach to create a plan that works for you.

Whether you’re just starting to think about retirement or already in the planning stages, taking control of your superannuation and overall retirement strategy is one of the most important steps you can take. Your retirement, your plan –let’s make it a reality.
 

Contact us today and let’s create a tailored retirement plan that will give you the peace of mind to truly enjoy your retirement years. 

How Long Will $500,000 Last in Retirement

How Long Will $500,000 Last in Retirement? 

Retirement is a journey, not just a destination. Planning for a fulfilling and secure retirement is essential, and one of the most common questions Australians ask is: How long will $500,000 last in retirement? The answer depends on several factors, such as your lifestyle choices, investment strategy, and unexpected expenses. 

Managing Spending

Your retirement savings will last longer if you manage your spending wisely. The key is finding a balance—living comfortably within your means without sacrificing your quality of life. 

Begin by creating a realistic retirement budget based on your priorities. Whether you want to travel, pursue hobbies, or simply enjoy time at home, your budget should reflect your goals. And remember, other income sources like pensions or Centrelink can extend the life of your savings. 

A Quick Overview

For a couple starting retirement at age 67 with a $500,000 superannuation balance, here’s how long that money could last based on different lifestyle choices and growth rates: 

Expense Category Modest Lifestyle Comfortable Lifestyle Affluent Lifestyle Luxury Lifestyle 
Annual Expenses $60,000 $80,000 $100,000 $125,000 
Monthly Expenses $5,000 $6,667 $8,333 $10,417 
Estimated Age of Balance Depletion 99 years 81 years 76 years 73 years 

Retirement Income Reality in Australia 

Relying solely on the Age Pension can limit your lifestyle. For a couple, the Age Pension currently provides $44,855 annually, but depending entirely on it may mean a constrained life, particularly in cities where costs are higher. 

Why Planning Matters 

Living solely on the Age Pension can limit: 

  • Housing choices 
  • Healthcare options 
  • Discretionary spending 
  • Travel opportunities 
  • The overall quality of life 

That’s why it’s essential to: 

  • Start your retirement planning early 
  • Develop diverse income streams 
  • Maximise superannuation savings 
  • Consider investment strategies 
  • Manage your spending wisely 

Aim to supplement the Age Pension with personal savings, investments, or part-time work to bridge the gap and enjoy a more comfortable retirement. 

Investment Strategy for Australian Retirees 

Your investment choices will impact how long your retirement savings last. Whether you opt for conservative options like cash accounts or bonds or take on more risk with stocks and property, your investment mix matters. 

A well-balanced portfolio helps protect your savings and supports growth, which is crucial for keeping up with inflation. But don’t take on too much risk—striking the right balance is key. 

Here’s a breakdown of how different returns affect the longevity of your savings, assuming a starting balance of $600,000 and annual withdrawals of $75,000: 

Rate of Return Investment Types Estimated Age of Balance Depletion 
3% Cash savings, bonds, term deposits 82 years 
5% Balanced funds, bonds, property, shares 84 years 
7% Growth funds, shares, property 90 years 

The right investment strategy ensures your savings are working harder for you, helping you secure a comfortable retirement. 

Important Considerations: 

  • Superannuation: Your superannuation choices impact your retirement. Be sure to review how it’s invested. 
  • Sequencing Risk: The order of investment returns matters, especially in the early years of retirement. 
  • Past Performance: Always remember that past performance doesn’t guarantee future returns. 
  • Professional Advice: Given the complexities of investment strategies, consider consulting a qualified financial advisor to tailor your plan. 

Estate Planning in Retirement 

As you enter retirement, managing your income is just one part of the picture. You also need to ensure your wealth is passed on to your loved ones in a smooth and tax-effective manner. This is where estate planning comes in. 

At LIFE Financial Planners, we advise clients to start estate planning early. A well-thought-out plan ensures your loved ones won’t face unnecessary complications. Key elements to include are: 

  • Wills and Trusts: Ensure your assets are distributed according to your wishes and reduce family disputes. 
  • Power of Attorney: Appoint someone to make decisions on your behalf if you become unable to do so. 
  • Superannuation Beneficiaries: Nominate beneficiaries for your super to ensure your balance is passed on tax-effectively. 
  • Minimising Taxes: Reduce the burden on your beneficiaries by planning for taxes through strategies like gifting or setting up trusts. 

Estate planning ensures your legacy is protected and your wishes are carried out. 

Bottom Line: Your Path to a Secure Retirement 

At LIFE Financial Planners, we believe a successful retirement begins with clear financial planning. Your $500,000 can last longer than you think if you approach it strategically. By budgeting, choosing the right investments, building tax-effective strategies, and planning for your legacy, you can ensure your retirement fund works for you now and in the future. 

Everyone’s retirement needs are unique. We’re here to guide you through creating a plan that’s tailored to your goals. Ready to start or need a retirement strategy review? Contact us today.