Amanda Hardy Lai, Author at Retirement Essentials

Turning ‘running out of money’ into a clear retirement plan

by Amanda Hardy Lai | Planning for Retirement

As retirement approaches, it’s natural to ask, “Am I going to be okay financially?” For Australians with a modest super balance, this question can feel urgent. Many people worry they won’t have enough to live comfortably, particularly if they’ve worked part-time, casually, or in industries such as retail or hospitality where super balances are often lower.

The fear of running out of money is common, but even with a super balance of around $200,000 there are practical strategies to help your funds go further and build confidence in your retirement.

Understanding a modest but comfortable retirement

What does ‘modest’ really mean in retirement? With the right planning, even a modest super balance can go further than many expect with the combination of Age Pension support and Account-Based Pension drawdowns. The resulting income may cover essentials, allow for small pleasures, and provide independence – without constant money worries.

For context, Australian Taxation Office (ATO) data shows that Australians aged 65-69 have a median super balance of around $218,000 for men and $199,000 for women. In other words, about half of people at this key planning stage have balances below these figures and half have more.

A modest balance doesn’t have to mean missing out on making the most of what you’ve got. By knowing your spending needs, using all available income sources, and making smart choices about super, you can replace uncertainty with a practical confident plan.

Will a new relationship affect my Age Pension?

by Amanda Hardy Lai | Centrelink Age Pension

Owen, 69, had been looking forward to sharing weekends with Laila, 60 – gardening, travel, and the small routines that come with building a life together. But before Laila moved in, Owen wanted to know one practical thing: how would his Age Pension change once Centrelink assessed them as a couple?

Owen owns his home, has $320,000 in super, $10,000 in cash, and $25,000 in assets. Laila works as a bookkeeper, has a unit with an $80,000 mortgage, and $278,000 in super. As she’s not yet Age Pension age, her super won’t count towards either her or Owen’s entitlements until she turns 67 or starts an Account-Based Pension (ABP).

They plan to live in Owen’s house and rent out Laila’s unit, expecting net income of $11,000 a year, which Centrelink will include as their combined income.

When on his own, Owen received $27,261 a year and drew $16,000 from super. As a couple, his Age Pension is estimated to reduce to $9,122 a year.

However, Laila’s income plus rent will add about $49,859 annually. With Owen’s drawdown, their household income should reach $74,981.

So while Owen’s personal Age Pension will shrink, together they’ll be financially stronger. Having a clear estimate helped them see the full picture and plan their next steps with confidence.

These details were confirmed during a Retirement Essentials Age Pension Consultation. The discussion encouraged the couple to review their income, assets, and personal circumstances against Centrelink’s rules, allowing them to understand what to expect due to their changed circumstances.

Retiring before Age Pension Age: What you need to know

by Amanda Hardy Lai | Centrelink Age Pension

Retiring before you qualify for the Age Pension can feel like stepping into no-man’s land. You’ve wrapped up your working life, but you’re not yet eligible for government support. It’s a unique stage – and one that’s becoming increasingly common since the Age Pension age increased to 67. This article helps you understand what to focus on, what support is (and isn’t) available, and how to make the most of your resources while you wait.

You’re not working – but you’re not 67 (yet)

Many people leave work well before Age Pension age: by choice, due to redundancy, or for health or caring reasons. Some assume they can apply for the Age Pension as soon as they stop working – but the earliest you can apply is 13 weeks before turning age 67 (if born after 1 Jan 1957). Even then you won’t be eligible until you turn 67, but you’ll be ahead in the Centrelink queue to get your application processed. That leaves a critical ‘bridge’ period, often several years long, where your superannuation and other income sources will need to carry you through.

Super can (usually) be accessed – but needs to stretch

Once you’ve met a condition of release (e.g. retiring after 60), you can usually start withdrawing money from your super. That might be through a lump sum or an Account-Based Pension (ABP).The challenge is how to draw enough to meet your spending needs now, while preserving enough to support you later – especially once the Age Pension kicks in.