Amanda Hardy Lai, Author at Retirement Essentials

Five common retirement questions and what to avoid

Retirement planning often starts with a mix of fear and determination—the worry of getting it wrong and the drive to work things out. Many people reach out with similar concerns, unsure of their options or whether they’re making costly mistakes. The good news? Seeking guidance and taking action will usually lead to better outcomes than going it alone does.
Here are five of the most common retirement questions that the team at Retirement Essentials receives—and key pitfalls to avoid when facing them.

Upsize, renovate or ‘family size’: Ways to increase your pension

by Amanda Hardy Lai | Centrelink Age Pension

Over the holidays, did you host a family gathering and wonder ‘Do we really need a home this large when we only use all the rooms once a year?’. Or did you daydream about what your ideal retirement home could look like? Closer to the grandkids, easier to maintain, or perhaps nestled by the coast with water views to wake up to.

Upsizing, Family-sizing, and the Age Pension

Most people know that the family home is exempt from the Age Pension assets test, regardless of its value. So, you could live in a stunning $6 million home, but still struggle to pay the electricity bill, rising insurance premiums and ongoing maintenance. In such cases, downsizing makes sense: sell the home, buy something more affordable and free up funds to support your retirement income.

But what if downsizing doesn’t leave you with that much of a financial buffer? In many areas, especially where median house prices are climbing, the difference between selling your home and buying something smaller can be minimal. The reality is that moving to a new home, even a smaller one, could cost you more than you’d expect.

Research from the Australian Housing and Urban Research Institute (AHURI) highlights that many retirees prefer to remain in their existing home rather than downsize. In fact, in 2022 AHURI found around 60% of owner-occupiers aged 65 to 74 years have stayed in the same dwelling over a 15-year period.

While downsizing is often promoted as a solution, the availability of suitable homes in desired areas is not always guaranteed at a price tag that would leave you with leftover funds. According to the Australian Bureau of Statistics (ABS), the median house price of a residential dwelling in Australia rose to $985,900 last quarter – September 2024. For retirees wanting to move, upsizing might be the best option for them to weigh up, and for others, renovating can offer a practical alternative to changing homes or locations.

We have also had a number of members recently asking us about how moving in with family in a granny flat arrangement would affect their Age Pension entitlements. For some, modifying their home to suit extended family arrangements is a smart way to ensure comfort and security while staying connected to family.

Could upsizing, renovating or ‘family-sizing’ your home be a better fit for your needs? And what effect might these choices have on your Age Pension entitlements both now and in the future?

In uncertain times: Protecting your investments

by Amanda Hardy Lai | Retirement Advice

Geopolitical events, such as wars or global pandemics, can disrupt and cause significant volatility in markets. While these events are beyond our control, understanding their impact on your investments —and how to manage risk effectively—can protect your long-term financial goals.

The impact of geopolitical risk on markets

In their report for 2025, 56% of leading chief economists at this year’s Davos World Economic Forum are expecting weaker global economic conditions, compared to only 17% who expect improvement. The International Monetary Fund (IMF) projects global growth to stabilise at 3.3% in both 2025 and 2026, which is below the historical average of 3.7% from 2000 to 2019.

Donald Trump’s re-election as the 45th and now 47th American president has reignited commentary about potential market volatility, with his previous term marked by tax reforms, trade wars, and deregulation that created uncertainty for investors. However markets delivered strong returns during that period.