Amanda Hardy Lai, Author at Retirement Essentials

My Super’s in a conservative fund: That’s safer, isn’t it?

Why playing it too safe could cost you more than you think

It’s easy to assume that a conservative investment option is the safest way to protect your super. After all, the word conservative suggests caution, stability and low risk which is especially appealing when retirement is just around the corner.

But what feels safe on the surface may not give you the income you’ll need in retirement. If your returns are too low and/or your withdrawals are too high, you may quietly erode your nest egg without realising it.

What does ‘conservative’ really mean?

Most super funds offer a range of investment options with varying mixes of growth and defensive assets. Conservative funds are generally tilted toward defensive assets such as cash and fixed interest. These tend to be more stable in the short term, but deliver lower returns over time.

If you’re drawing down five per cent a year from your super, but your investment returns are only aiming to beat inflation as measured by Consumer Price Index (CPI) by one per cent (CPI was 2.1 per cent for the 12 months to June 2025), your capital will shrink. This can shorten the life of your savings and reduce your income in the years ahead.

Too wealthy for the Age Pension? You might still qualify for a valuable health card

by Amanda Hardy Lai | Commonwealth Seniors Health Card

Many self-funded retirees assume they won’t be eligible for the Commonwealth Seniors Health Card (CSHC) because their assets are too high. But unlike the Age Pension, the CSHC is assessed on income only – there’s no assets test.

And that income isn’t based upon what your super or Account-Based Pension actually earns. Centrelink applies deeming rules, which estimate a standard rate of return regardless of your fund’s real performance. Thanks to these rules, even retirees with significant assets –in some cases, up to $4.5 million (singles) or $6.8 million (couples), – may still qualify, depending on how their income is assessed.

How to set up your kids for success – without putting yourself (or them) at risk

by Amanda Hardy Lai | Retirement Advice

A growing number of parents and grandparents are stepping in to help the next generation buy a home. But while the generosity comes from the heart, the financial and legal implications can be anything but simple – especially when family dynamics, relationships or Centrelink comes into play.

The Bank of Mum and Dad: It’s not just for the wealthy

You might think the Bank of Mum and Dad (BOMD) is only for the wealthy – but the reality is quite different. More and more everyday Australian parents are stepping in to give their kids a helping hand, especially when it comes to buying a home.

It’s not always about large sums either. For many families, it’s about doing what they can to give their children a more secure start in life.

Recent data from the Household, Income and Labour Dynamics (HILDA) survey shows a clear trend: between 2019 and 2022, about 7% of children received financial gifts from their parents – with an average gift of just over $9,000. These weren’t parents still living with their children either – they were “non-resident” parents, which would include parents whose adult children have already moved out.

While these amounts might not sound huge on their own, they point to something bigger. Parents are helping out in growing numbers – often by stretching their own finances to support the next generation.

This rise in support isn’t just about wealth. It’s about love, fairness, and the deep desire many families have to see their kids get a fair start in life.

A real-life dilemma

Peter and Lorna are in their early 80s. They receive a part Age Pension, own their home, and have modest superannuation. Their adult daughter, recently separated, is trying to buy a home of her own. Peter and Lorna want to help – they want to make sure their daughter is financially secure in her new start – but at the same time they need to know their support won’t put their own retirement at risk.