A common fear many Australians face as they approach retirement isn’t just about how they’ll spend their time, it’s whether their savings will last the distance.
You’re not alone if you’ve thought: “Will I run out of money?”
It’s a concern we hear often, especially in today’s world of rising living costs, market uncertainty and longer life expectancy. Some people delay retirement or hold off on enjoying their money, not because they want to but because they’re unsure how far it will stretch.
The good news? You don’t have to leave it to chance.
At Carbon Wealth Management, we help you build a retirement income strategy that gives you certainty and control, combining super, investments and smart planning to support the lifestyle you’ve worked so hard to create.
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What Does It Mean to Optimise Your Super?
Once you stop working, your income doesn’t stop but it does start coming from different sources. Without a clear plan, you risk:
- Overspending too early, leaving yourself short in later years
- Underspending due to fear, missing out on the lifestyle you’ve worked hard for
- Unexpected tax bills, especially if your withdrawals aren’t structured properly
But there’s another, less obvious risk that’s becoming more common: playing it too safe.
Reports like the Intergenerational Report and the Retirement Income Review show that many Australians are living longer but only withdrawing the minimum from their super. This overly cautious mindset often results in:
- Underspending in retirement
- Heavy reliance on low-return assets like cash
- Large super balances left untouched at death
The common thread? Uncertainty around how much is “safe” to spend and how long savings need to last.
It doesn’t have to be this way. With the right strategy, you can create an income stream that’s steady, tax-smart and built to support you through every stage of retirement, without the guesswork.
How We Create Reliable (and Predictable) Retirement Income
Reliable income in retirement isn’t about guessing; it’s about strategy. Our financial advisors create tailored plans that combine income security with flexibility, using tools like:
1. Account-Based Pensions (ABPs)
Your super becomes a flexible income stream post-retirement, and after age 60, it’s generally tax-free. You must withdraw a minimum percentage each year (e.g. 5% from age 65–74), but how much more you take is up to you.
Withdrawing only the minimum may leave you spending far less than you can afford. In many cases, you can safely “give yourself a pay rise.”
2. Annuities
These offer guaranteed income for a set period or for life.
- Great for covering essential living costs like housing, food and utilities.
- Immune to market fluctuations, your income is locked in.
- Useful for those who want certainty and simplicity.
3. Non-Super Investments
To diversify income and reduce tax pressure, we often recommend:
- Dividend-yielding sor managed funds.
- Investment property rental income.
- Cash or term deposits for lower-risk liquidity.
Planning for the Unexpected
Retirement doesn’t follow a straight line. That’s why we don’t just set and forget your plan.
We consider:
- What if markets fall?
- What if healthcare costs increase?
- What if you or your partner lives longer than expected?
By modelling different scenarios, we build in buffers, adjust income streams as needed and make sure you always have a backup, not just the best-case.
And if you’re eligible for the Age Pension, now or later, we’ll factor that in too. It’s a reliable, inflation-linked income stream that helps preserve your super for longer.
Why People Run Out of Money (And How to Avoid It)
Common reasons retirees exhaust their funds:
- Overspending without a plan
- Unexpected life events (e.g. divorce, illness, financial support for family)
- Not accessing entitlements like rebates or concessions
- Taking on unmanageable debt
- Poor decisions or lack of financial guidance
Avoiding these comes down to proactive advice and planning.
Why Work with Carbon Wealth Management?
Creating reliable retirement income isn’t just about picking the right product, it’s about having the right strategy and the right advice behind it.
Our team:
- Get to know your retirement goals and lifestyle priorities.
- Build a layered income strategy to balance certainty and flexibility.
- Work hand-in-hand with our Accounting & Tax and other divisional teams to ensure your income is structured for tax efficiency.
And most importantly, we’re by your side long after your last pay cheque. We keep your plan working for you so you can enjoy life without second-guessing your finances.
Ready to Stop Worrying About Running Out of Money?
If you’re nearing retirement and want to feel confident that your savings will last, we’re here to help.
Book a chat with our financial planners today and let’s build a retirement income strategy you can count on.
