A quick guide for planning post-retirement finances

Did you know?

The average Australian spends around 20 to 25 years in retirement.1

During this time you may have different sources of income to rely on such as,

  • Superannuation,

  • Age Pension, 

  • Savings, or an inheritance. 

However, ensuring that you have enough funds to last your post-career years is dependent on your own situation, wants, needs and lifestyle expectations for your ideal retirement.

Another important thing to consider is the rising costs of living due to inflation and other potential expenses they may incur during your later years such as hospital cover or aged care needs.

In light of these financial aspects that may apply within your retirement, you may want to assess the most effective investments you can make for your retirement (even before reaching retirement) to ensure your lifestyle remains comfortable and financially stable.

Here’s a guide for planning post-retirement finances:

Consider your risk threshold

What does your financial decision-making process look like?

Is it based on fear or potential? 

After thinking about these questions, you may then start to grasp an idea if your risk threshold is low or high.

  • Low riskers: maintain a conviction of low risk and low returns. 

While what you may gain financially may be lower than high riskers (especially in the short-term), what you will benefit from is more stability. Low-risk investments usually guarantee a certain, stable outcome of returns. Whatever amount is invested usually returns with a small incremental gain.

  • High riskers: are excited by the potential of a considerable return on investment. Usually, these types of investments are high risk with high returns in the long-term. 

High-risk investments may come with significant losses in the short-term, however, there can be high returns long term. High-risk investment types may be suited to you if you have a number of years until retirement so you have time for your investments to grow and ride out market fluctuations.

Investment strategies you may want to explore

Once you have determined your risk threshold, you can now make an informed decision as to the kind of investments you want to make.

You may want to consider setting aside a certain percentage of your retirement savings that you are comfortable parting with for investing. Meanwhile, consider leaving the rest in your savings account, so you still have cash for everyday expenses. 

Now if you’re ready to invest, here are 4 investment types you can explore:

1. Cash Investments:

Includes bank accounts and term deposits. These protect your wealth and subsequent interest earned since they are not affected by risk or market losses. 

However, building your wealth through this investment takes time. It may take up to ten years to see a significant return on your investment.

2. Fixed Interest Investments:

Examples include government bonds or corporate bonds. This type of investment is not overly risky and is good for short-term investors (ie. retirees who are looking to grow their money in the next few years safely).

3. Property Investments:

Includes both residential and commercial property. These investments usually earn a steady rate of income and offer significant capital growth. 

However, it can be hard to diversify with property investments as it is quite expensive to enter into the investment property market. Also, you are unable to have access to quick cash without selling the entire property (as opposed to shares where you can sell some shares).


This involves investing in a company (ie. buying shares on the stock market). These can be risky and your investment can fluctuate over the years. That is why this investment is best for high-risk investors and for investors with a long timeframe. 

As investors usually say…

Never put your eggs in one basket—look at diversifying! 

You may want to incorporate a variety of the above investments into your portfolio to increase the chances of security and returns.  

As always, check with your risk threshold so what you part with doesn’t leave you in need but gives you just enough to live a financially-prosperous retirement.

Get in touch with Poole Advisory right now for the best investments for retirement! We’re a financial planning firm that offers investment advice and a suite of services that get your finances under control. 

Speak with one of our experts today!


  1. https://www.aihw.gov.au/reports/life-expectancy-death/deaths-in-australia/contents/life-expectancy


Compliance Disclaimer:

This information contains general advice only, that is, advice which does not take into account your needs, objectives, or financial situation. You need to consider the appropriateness of that general advice in light of your personal circumstances before acting on the advice. You should obtain and consider the Product Disclosure Statement for any product discussed before making a decision to acquire that product. You should obtain financial or credit advice that addresses your specific needs and situation before making investment or borrowing decisions. Taxation information is based on our interpretation of the relevant laws as at 1 July 2018. While every care has been taken in the preparation of this information, Prosperitas Partners Pty Ltd does not guarantee the accuracy or completeness of the information. The case studies are hypothetical, for illustration purposes only and are not based on actual returns

Poole Advisory Pty Ltd ABN 15 642 040 604 is a Corporate Authorised Representative (No. 001282603) of Prosperitas Partners Pty Ltd ABN 30 662 654 453 AFSL 544 917

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