Help your retirement funds last the distance


Key takeaways

  • The power of compound returns cannot be overstated, and the longer your funds have to grow, the better
  • Spreading your investments across different asset classes, such as stocks, bonds, real estate, and international investments helps mitigate risks and protects your portfolio against market volatility
  • Be mindful of your lifestyle choices and ensure your expenses fall within your available resources.

Retirement is a time that many Australians eagerly anticipate, providing plenty of time to pursue hobbies, do more travelling, or simply kick back and enjoy the fruits of your labour.

But retirement also comes with financial considerations. The idea of retirement without a substantial nest egg can create a very different mindset. Particularly now, as the cost of living continues to rise sharply, it is vital to ensure that your retirement funds are sufficient to meet your needs for the long haul.

With increasing life expectancies and uncertain economic conditions, careful planning and smart financial decisions have taken on a whole new level of importance.

In this article we outline key strategies to boost and preserve your retirement savings to help achieve long-term financial security throughout your golden years.

It’s never too early to start saving

When you’re in your 20s or 30s, retirement could scarcely be further from your mind, which is understandable. However, not giving it due consideration is to miss an opportunity to ensure that your retirement could be a very comfortable one.

The power of compounded returns cannot be overstated, and the longer your funds have to grow, the better.

Take advantage of super accounts, which offer tax advantages when making additional contributions. Contributing even a little more to your superannuation fund than the legally mandated amount throughout your working years can significantly boost your retirement savings.

Diversify your investments

Diversification is a fundamental principle of successful investing, and it is important during retirement, as you most likely will not have the same earning potential you had during your working life to recover any losses incurred from investments.

Spreading your investments across different asset classes, such as shares, bonds, real estate, and international investments helps mitigate risks and protects your portfolio against market volatility.

Setting up an investment portfolio can be fairly straightforward if you do a little research, but if you don’t feel comfortable doing so independently, consult with a financial expert. They can help you design an investment strategy that’s aligned with your risk tolerance and financial goals.

Create a realistic budget

To make your retirement funds last, create a realistic budget and stick to it. Work out your total ongoing expenses, such as housing, healthcare, utility bills, and daily living costs. Factor in discretionary spending for travel, hobbies, and entertainment.

Be mindful of your lifestyle choices and ensure your expenses fall within your available resources. Consider tracking your expenses using budgeting tools or mobile apps to monitor your cash flow and identify areas for potential savings.

Minimise debt

Carrying debt into retirement can place a significant strain on your finances. Prioritise paying off high-interest debt, such as credit cards and personal loans, before retiring.

Minimising (or better still, eradicating) debt not only reduces your financial obligations but also provides peace of mind.

Develop a debt repayment plan and consider working with a financial expert to manage your debt management strategy, so you can minimise the amount of interest you have to pay.

Consider longevity and healthcare costs

Increased life expectancies mean retirees need to plan for the potential of a longer retirement. Medical expenses can be a significant financial burden, so you must factor in healthcare costs when planning for retirement.

Research and understand your healthcare options, including Medicare and any private health insurance. Consider setting aside funds specifically designated for healthcare expenses, including long-term care, to ensure you are adequately covered for any medical needs that may arise.

Continuously monitor and adjust

Financial planning doesn't end when you retire. Regularly review and adjust your investment portfolio based on changing market conditions and your evolving financial goals.

Stay abreast of new investment opportunities and seek professional advice when needed. Monitor your spending patterns and adjust your budget, as necessary.

Keeping a proactive approach to your finances will help ensure that your retirement funds are being utilised optimally.

Downsize or relocate

Consider downsizing your home or relocating to a more affordable area to reduce housing expenses and potentially free up extra funds for retirement.

Part-time work

Many people prefer not to have a complete full stop on their working life, instead opting to continue working on a part-time basis. For some, this may be an economic necessity to bolster their income, while for others, they do so just to keep active and productive.

Whatever your situation, exploring part-time work opportunities during retirement can supplement your income and reduce the amount you need to withdraw from your savings. If you are on the government pension, you can earn a certain amount of income before your pension is impacted.

Prepare for unexpected expenses

Set aside an emergency fund to cover unexpected costs during retirement, such as home repairs. This will help prevent you from dipping into your retirement savings.

Stay informed and adapt

Stay updated on changes in tax laws, retirement policies, and economic conditions that may impact your retirement savings. Be prepared to adjust your strategy accordingly to make your savings last.

Making your retirement funds last the distance requires careful planning, discipline, and adaptability. By starting early, diversifying your investments, creating a realistic budget, minimising debt, considering healthcare costs, and continuously monitoring your finances, you can set yourself up for long-term financial security.

Seek professional advice from financial planners and stay informed about the latest retirement strategies.


Bottom line: your retirement should be a time of relaxation and enjoyment. Taking the necessary steps to secure your financial future will enable you to make the most of this well-deserved chapter of your life.

Important Information
This information is provided by Plum Super and issued by NULIS Nominees (Australia) Limited ABN 80 008 515 633, AFSL 236465 (NULIS) as Trustee of the MLC Super Fund ABN 70 732 426 024 (RSE Licensee). NULIS is part of the Insignia Financial Group of companies comprising Insignia Financial Ltd (formerly IOOF Holdings Ltd) ABN 49 100 103 722 and its related bodies corporate (Insignia Financial Group). Plum Super is part of the MLC Super Fund. The information contained in this communication is general in nature and does not take into account your employees’ personal objectives, financial situation or needs. Because of that, before acting on any of this information your employees should consider whether it is appropriate to their objectives, financial circumstances and needs. We recommend your employees obtain financial advice tailored to their own personal circumstances. Your employees should not rely on this information to determine their personal tax obligations. We recommend your employees consult a registered tax agent for this purpose. While care has been taken in the preparation of this information, NULIS nor any member of the Insignia Financial Group accept responsibility for any loss or liability incurred by you in respect of any error, omission, or misrepresentation in the information in this communication.