All posts by Robert Wright

What happens to your super when you retire?

By Robert Wright /November 21,2025/

Superannuation is one of the important pillars of savings in retirement for most Australians. After years of working and contributing to your super fund, retirement is when you are finally able to access it. Whether retirement is just around the corner or still a few years away, it’s worth understanding your options.

In this article, we’ll walk you through your options on what do with your super when you retire, how is it taxed and what happens if there’s any left when you pass away.

When can you access your super?

You can usually access your super when you reach your preservation age (currently age 60) and retire. Alternatively, you can start accessing it once you turn 65, even if you’re still working.

There are other special circumstances where you might be able to access it earlier, like severe financial hardship or permanent disability but generally speaking, retirement is the key trigger.

Your options once you have access to your super

Once you retire and meet a condition of release, your super becomes accessible for you to withdraw but that doesn’t necessarily mean you have to withdraw and use all of it.

You’ve got a few main options and you may prefer a combination of these:

Leave it in your super fund (Accumulation phase)

Yes, you can actually choose to leave your super where it is, in its accumulation phase even after you retire.

If you don’t need to access the money straight away, you can leave your super invested in the fund’s accumulation account. Your money can keep growing (taxed at 15% on earnings) and you can access it when you’re ready.

So, while this may suit short-term plans, it may usually not be the most tax effective option when compared to other options like starting a superannuation pension in retirement, which is often tax free and funded with money from your superannuation savings.

Take a lump sum

Where access to funds is required, you may prefer withdrawing a lump sum from super. This can help you in various ways like paying off a mortgage, clearing credit cards or personal loan debt, covering medical costs, funding travel expenses or investing elsewhere (e.g. property, shares outside of super).

However, this decision should be carefully considered as withdrawing a lump sum or lump sums can reduce how long your super lasts. It’s also worth considering how that money will be managed outside super, as it may be subject to different tax treatment or may impact any Centrelink entitlements like the Age Pension.

Start a superannuation pension (account-based income stream)

An account-based pension lets you convert your accumulated super into a regular income stream. However, once an income stream is started with a set balance, you cannot add more monies to the ongoing account-based pension unless the pension is commuted and restarted again. If you need access to your superannuation savings, starting an income stream is a popular option which can be tax effective.

Where access to the super savings is required, an income stream can be a good option because:

You can receive regular and flexible payments (monthly, quarterly, etc).
You can choose how much to set as regular income for your pension payment (subject to government set minimum limits).
Earnings are tax free once you’re in pension phase.
Payments can be adjusted as your needs change.
You keep control over your investment strategy.

You can still withdraw lump sums if needed but many people like the idea of a steady income, much like a salary. However, consider that the ongoing income payments can reduce your account balance over time.

Can a lifetime annuity help?

One of the biggest concerns for retirees is running out of money.

If you want income for life, no matter how long you live, lifetime income streams such as a lifetime annuity can help you achieve that.

Unlike an account-based pension (which relies on how long your money lasts), a lifetime annuity is more like an insurance product. You invest a lump sum from your super and in return, receive a regular income for the rest of your life.

Some retirees consider using a combination of a pension and an annuity – the pension provides flexibility and the annuity can provide peace of mind. However, lifetime annuities are designed to be held for life. Although there may be flexibility to access a lump sum if needed, there may be break cost considerations.

Can I combine these options?

Absolutely and many retirees choose to do so.

You might prefer to consider:

Leaving some of your super invested in accumulation phase.
Taking a lump sum to pay off debts.
Starting a super pension to draw regular income.
Using part of your super to start a lifetime annuity.

The right mix will depend on your lifestyle, goals, health, family situation and other sources of income, including the Age Pension. There are many more options we have not discussed.

The Age Pension and Super: How they can work together

The Age Pension is a government payment designed to help eligible Australians in retirement. As of 2025, you can apply for the Age Pension from age 67.

There are also concessions and benefits that come with it, such as reduced utility bills and medical costs, so it’s well worth checking your eligibility.

Eligibility is also based on your means – your income and assets. Centrelink includes your super in the assets and income tests. However, the assessment can differ if your super is converted into an income stream like a lifetime annuity.

Age Pension, combined with other sources of super based income like an account-based pension and/or a lifetime annuity, can help make your money last longer. It acts as a safety net if your super runs down over time. This can be a powerful way to stretch your retirement savings further.

How is my super taxed when I retire?

The earnings on your super are usually taxed at a maximum rate of 15% whilst the super remains in accumulation phase. Where an account-based pension is started, the earnings in the pension phase are tax free.

If you’re age 60 or over, any withdrawals from your super (lump sum or income) are usually tax free if you’ve permanently retired.

However, if you’re under 60 or receiving certain types of benefits (like defined benefit pensions), tax rules may be a little different. It’s worth speaking to a financial adviser to understand your situation.

How do I make my super last?

Australians are living longer than ever, and therefore it is important to strategise and ensure that your retirement savings can last for a long time.

Here are a few strategies to consider:

Budget and plan – Work out how much income you need as opposed to how much you want. Consider your spending habits and lifestyle goals to help ensure you don’t withdraw more than you need. Work out how long your super will last.
Stay invested – Your money doesn’t have to stop working for you when you retire. Draw appropriate amounts based on your retirement objectives and consider keeping the balance invested in an option that suits your risk tolerance and goals.
Mix your income sources – Layering your income can help your super last longer. One way you could consider meeting your essential expenses throughout retirement, the Age Pension can work together with a secure, lifetime income stream, such as a lifetime annuity, to provide regular income payments for life. Once your essential expenses have been met through a combination of the Age Pension and a lifetime income stream, you could meet your additional desired expenditure goals with income from an account-based pension.
Review your investments – Ensure they match your risk tolerance and income needs in different phases of your retirement.

What happens to my super when I die?

If you don’t use all your super before you pass away, the remaining balance is generally paid out to your beneficiaries, either as a lump sum or income stream (depending on your instructions and their eligibility) or your estate.

This is known as a death benefit and it can be left to your spouse or partner, your children, certain dependant or interdependents or your estate. It can either be paid as a lump sum or can be paid as an income stream. The tax treatment depends on who receives the benefit. For example, a lump sum payment to a spouse is tax free.

To make sure your wishes are followed, it’s important to nominate your beneficiaries with your super fund. You can make a binding death benefit nomination to ensure your super goes exactly where you want it to. Otherwise, your super fund will decide (within legal guidelines).

Steps toward a stronger retirement

Super can be one of the most flexible and tax effective ways to fund your retirement but simply reaching retirement age doesn’t mean your financial decisions stop. In fact, how you choose to access and manage your super can shape your lifestyle for decades to come.

Whether you choose a lump sum, a regular income or a combination, planning ahead is essential. Think about how long your money needs to last, how to make the most of your tax benefits and how to combine super with other income sources like the Age Pension. A financial adviser can help you tailor your retirement needs with the right options.

Super is more than just savings. The right strategy can help your super last longer, support your quality of life, and give you peace of mind.

Source: Challenger

Investing an inheritance from $10,000 to $100,000 whatever your life stage

By Robert Wright /November 21,2025/

Receiving an inheritance may be a once in a lifetime financial opportunity that also coincides with a very difficult, emotional time in your life. Whether you inherit $10,000 or $100,000, your age, life stage, risk appetite and financial preparedness are likely to play a key role in decisions about how and where to invest.

Many Australians are likely to be left some form of inheritance, most likely from a parent, at some point in their life, with 81% of retirees currently expecting to leave wealth behind.

The average amount Australians expect to inherit is $184,000, according to research commissioned by Colonial First State*.

And while one in two Australians consider up to $10,000 a sizeable amount with which to start investing, the research shows the average amount most Australians consider to be a sizeable investment to own is more than $600,000.

Investing an inheritance may help close that gap. Following are some general thought starters to consider by age, life stage and size of inheritance but please consult a financial adviser for advice relevant to your personal situation.

Also consider your risk appetite. Generally, the more risk you’re willing to undertake, the higher the potential reward may be. However, higher returns come with a higher risk that the value of your investment may fall.

In general, if you only have a short time frame to invest, lower risk investments could be a safer option as they’re less likely to fluctuate in value.

What to do when you first receive an inheritance

The first thing to do when you first receive an inheritance, particularly if it comes at an unexpected time, is to consider your options.

That may mean putting it in a high interest savings account or a mortgage offset account while you decide what to do.

Then consider your goals. Do you need to pay off debt? Are you looking to build long-term wealth? Pay off your home loan? Build a diversified investment portfolio? Or invest for the kids?

Most people with a six figure amount to invest will consult a financial adviser, although it can also be cost effective to obtain one off financial advice for smaller amounts.

Inheriting assets like shares or property, such as the family home, can also have different capital gains tax implications if you decide to sell, so getting tax advice may also be important.

In your 20s

In your twenties, it may be helpful to pay off any high interest debt or build an emergency fund to cover three to six months of living expenses. Otherwise, the earlier you invest, the more time your money has to grow and compound.

$10,000 to invest:

A growth oriented exchange traded fund (ETF) or managed fund may allow money to grow while offering flexibility to access it later if needed.
A voluntary contribution to super, allocated to growth or high growth, can be a tax effective investment that compounds over the long term if you’re within the super contribution caps, or limits, although you generally can’t access it until you reach age 60 and have retired.

$100,000 to invest:

Low touch investors might consider a diversified range of shares via set and forget growth ETFs and managed funds, such as a US shares themed ETF or a long-term growth managed fund.
It may be worth consulting a financial adviser to start building a diversified growth portfolio of managed investments.

In your 30s

For many, the thirties are about getting into the housing market.

$10,000 to invest:

A high interest term deposit or savings account that offers some growth may be a good option over a short time frame.
A voluntary contribution to super may allow you to save for your deposit faster using the First Home Super Saver scheme. The tax rate is generally 15% on earnings in super, while the amount of your contributions you can release to buy your first home increases in line with the shortfall interest charge rate (currently 6.78%).

$100,000 to invest:

Starting a family or looking to enjoy a little extra income?

Dividend focused ETFs may help generate a passive income stream.
If property investing is more your thing, you may have enough to invest in a growing regional market or a real estate investment trust (REIT).

In your 40s

At this point, many Australians who have a mortgage are looking to reduce it.

$10,000 to invest:

Those with a mortgage that’s more than 50% of the value of their home might consider paying it down or putting their inheritance in a mortgage offset account.
If a mortgage is less than 50% of the value of the home, it may be worth considering shares as average share market returns most years can be higher than average mortgage interest rates – again, there are many low cost ETFs and managed funds available.
Or consider making a one off voluntary concessional (pre tax) or non-concessional (after tax) contribution to your super and investing it in a long-term, high growth shares investment option, a gold or silver themed ETF or the growth focused managed fund of your choice.

$100,000 to invest:

Thinking about paying for the kids’ education? Investment bonds can be a good option to include in the mix as withdrawals are tax free after 10 years.
Some investors may consider debt recycling by paying down the mortgage and then applying for a new loan to buy an investment property. Interest on the new loan is generally tax deductible so those interest payments can be offset against your income to reduce the amount of tax you pay.
For those who can afford to invest the money outright, it may be worth building a diversified portfolio of ETFs or managed funds. Global and local shares have historically offered among the best returns. We can connect you with a financial adviser if you’d like help to invest.

In your 50s

After the age of 50, it’s often a good time to maximise pre tax and after tax super contributions to harness some of those tax advantages.

$10,000 to invest:

Have you reached your annual super contribution cap limits? You can contribute up to $30,000 a year in concessional contributions, which are generally taxed at the concessional rate of 15%. These include compulsory employer contributions and salary sacrifice, as well as voluntary personal contributions (which could include a tax free inheritance) for which you claim a tax deduction.
Alternatives might include investing in income producing shares that usually pay a dividend, income or dividend ETFs or REITs.

$100,000 to invest:

If you haven’t fully used your concessional contributions cap in any of the previous five financial years (and your total super balance was less than $500,000 at 30 June of the most recent financial year), you may be able to use those unused cap amounts to make additional catch up contributions over the standard concessional cap amount (currently $30,000).
Non-concessional super contributions (up to $120,000 a year to a maximum super balance of $2 million) are not taxed on the way in and are an effective means of growing your super quickly. While you can’t claim a deduction against these contributions, they compound relatively quickly in the super environment. Depending on how much you have contributed in prior years, you may be eligible to contribute up to $360,000.
Investors who are likely to need to draw on their investments in the next few years, might consider including some fixed income securities or managed volatility funds alongside higher risk investments, such as shares.

In your 60s

Many people approaching retirement focus on preserving capital against sudden falls in value but there are also real costs in going too conservative too early.

From age 60, you can also access super if you meet a condition of release, such as retiring from a job. You can access your super regardless from age 65.

$10,000 to invest:

It may be helpful to pay down any remaining debt or top up super.

$100,000 to invest:

After 60, be cautious with gifting, as it may affect your eligibility to receive the government’s Age Pension from age 67. Gifts over $10,000 per year or $30,000 over five years will still be counted among your assets when it comes to Centrelink means-testing.
For those who have reached their super contribution cap limits, it may be worth topping up your spouse’s super.

In your 70s and beyond

Enjoy your retirement. Most investors are focused on capital preservation and income generation and it may be worth using the bucket strategy with the goal of making your money last longer. At the same time, don’t forget to tick off the things on your bucket list.

$10,000 to invest:

Keep some money in cash or term deposits for accessibility.

$100,000 to invest:

A mix of fixed income investments, REITs and conservative managed funds may help reduce risk, alongside higher growth shares or managed funds that you don’t expect to access in the next five years.

Whether you inherit a modest sum or a substantial windfall, align your investment strategy with your life stage, goals and risk tolerance.

For smaller amounts, many Australians manage without advice but for larger inheritances, professional advice from a financial adviser and an accountant can help you navigate tax implications, diversify your investments and plan effectively for the future.

* Colonial First State research conducted with 2,250 Australians online between January and June 2025.

Source: Colonial First State

Higher deeming incomes, Age Pension asset test limits and payments from 20 September

By Robert Wright /November 21,2025/

Deeming rates changed for the first time in five years in September, which will affect the income the government estimates retirees earn from their investments. At the same time, Age Pension payments and part Age Pension cut off limits have also increased.

Deeming rates used to estimate the income Age Pension recipients receive from their financial investments increased from 20 September for the first time since being frozen during the COVID-19 pandemic.

The increase means retirees will be deemed to receive more income than previously from the same amount of financial investments.

Pension payments are reduced by 50 cents for every dollar of additional income. But while that will see Age Pension payments reduced for some, it may be offset for many by an increase in Age Pension entitlements.

There has also been an increase in the part Age Pension cut off limit and in the income limit for the Commonwealth Seniors Health Card – but once again, that change may be offset by the increase to the deeming rates.

Many people mistakenly assume they’re not eligible, so it’s worth checking if you qualify under the new rules. Eligibility for the government Age Pension starts at age 67, though you can apply up to 13 weeks earlier.

What are the new deeming rates and why do they matter?

The deeming rate increased from 0.25% to 0.75% for the first $64,200 a single pensioner receives and the first $106,200 a couple receives.

The higher deeming rate, which applies to the balance of any financial assets, increased by the same amount, from 2.25% to 2.75%.

Age Pension payments increased in September 2025

Here are the maximum Age Pension payment rates that are in effect as of 20 September, paid fortnightly, along with their respective annual equivalents. Single payments rose by $29.70 per fortnight, while combined payments for couples increased by $22.40 per person.

Maximum Age Pension payments from 20 September 2025

Payment Type	Fortnightly*	Annually*	Previous fortnightly payment	Previous annual payment
Single	$1,178.70	$30,646.20	$1,149.00	$29,874.00
Couple (each)	$888.50	$23,101.00	$866.10	$22,518.60
Couple (combined)	$1,777.00	$46,202.00	$1,732.20	$45,037.20

Department of Social Services Indexation Rates September 2025. *Includes basic rate plus maximum pension and energy supplements.

Payments last increased in March 2025 and are likely to change again when they are next assessed in March 2026.

Tip: Many people assume they’re not eligible for either a part or full Age Pension and therefore apply late or miss out on this and other government benefits.

Age Pension income and assets test thresholds increase

The government reviews the Age Pension income and assets test thresholds in July each year. The upper limits, also known as thresholds, increase in March and September each year in line with Age Pension payment increases.

Whether you are eligible for the Age Pension depends on your age, residency and your income and assets.

If your income and assets are below certain thresholds you may be eligible.

When determining how much you’re entitled to receive under the income and assets tests, the test that results in the lower amount of Age Pension applies.

Here are the income and assets test thresholds that apply as at 20 September, compared with previous thresholds.

Assets test thresholds

The lower assets test threshold determines the point where the full Age Pension starts to reduce, while the upper assets test thresholds determine what the cut off points are for the part Age Pension.

If the value of your assets falls between the lower and upper assets test thresholds, your entitlement will be reduced. The higher your assessable assets, the lower the amount of Age Pension you are eligible to receive.

Your family home is exempt from the assets test but your investments, household contents and motor vehicles may be included.

Asset test thresholds from 20 September 2025

Payment type	Full Age Pension limit	Part Age Pension cut off	Previous full Age Pension limit	Previous part Age Pension cut off
Single – homeowner	$321,500	$714,500	$314,000	$697,000
Single – non-homeowner	$579,500	$972,500	$566,000	$949,000
Couple (combined) – homeowner	$481,500	$1,074,000	$470,000	$1,047,500
Couple (combined) – non-homeowner	$739,500	$1,332,000	$722,000	$1,299,500

Source: Services Australia Age Pension Assets test thresholds

Income test thresholds from 20 September 2025

The lower income test threshold determines the point where the full Age Pension starts to reduce, while the upper income test threshold determines what the cut off point is for the part Age Pension.

Income includes things like payment for employment or self employment activities, rental income and a deemed rate of income from financial investments such as managed funds, super (if you are over the Age Pension age) or account-based pensions commenced after 1 January 2015.

Income doesn’t include things like emergency relief payments.

Income test thresholds from 20 September 2025

Payment type	Full Age Pension limit	Part Age Pension cut off	Previous full Age Pension limit	Previous part Age Pension cut off
Single	$218 per fortnight	$2,575.40 per fortnight	$212 per fortnight	$2,510.00 per fortnight
Couple (combined)	$380 per fortnight	$3,934.00 per fortnight	$372 per fortnight	$3,836.40 per fortnight

Source: Services Australia Age Pension Income test thresholds

If you have income between the lower and upper income test thresholds, your entitlement will reduce as your level of income rises.

For example, the Age Pension payment for a single person earning more than $218 per fortnight will reduce by 50 cents for each dollar earned over $218.

For a couple earning more than $380 per fortnight combined, the Age Pension payment for each person will reduce by 25 cents for each dollar earned over $380.

Tip: The Work Bonus allows you to work and earn up to $300 per fortnight without affecting your Age Pension. If you don’t work, this amount accrues up to a maximum Work Bonus balance of $11,800.

Commonwealth Seniors Health Card income limit increases

From 20 September 2025, the income limit to qualify for the Commonwealth Seniors Health Card (CHSC) will be:

Single: $101,105 per annum (an increase of $2,080).

Couple (combined): $161,768 per annum (an increase of $3,328).

You must be Age Pension age and meet some other requirements to be eligible for the CSHC.

Source: Colonial First State

Protecting your money – Cybersecurity and scam awareness

By Robert Wright /November 21,2025/

Your super and investment savings represent years of hard work for a secure future. Unfortunately, they can be a prime target for scammers, causing significant financial loss and emotional distress.

Financial scams are on the rise and becoming more sophisticated, making them harder to detect. This article will help you recognise common types of super and investment scams, how to identify them and how to protect yourself and your loved ones.

Super scams

These scams usually involve individuals or companies pretending to be from a super fund or regulatory body seeking your personal information. They may claim they need it to update your super account or verify your identity. Or they could offer to help you access your super before you’re eligible to under law. They may claim that doing this can, for example, help you pay off debts or purchase a house. But accessing your super early can result in significant penalties. In addition, these scams may involve high fees or charges which can eat into your super savings.

We recommend that:

You never give out your personal information unless you’re sure it’s safe.
You’re aware of the conditions of release to withdraw your super.

Given the variety of scams out there, following these four steps can help prevent you falling victim.

Stop

If you receive a suspicious call, email or text, pause and assess. Genuine organisations never pressure you to act immediately or ask for your password via email.

Reflect

Be careful about sharing personal information online. Scammers piece together details from various sources to exploit or create accounts in your name. Always reflect.

Protect

Whether it’s personal or work, staying vigilant is crucial. When in doubt, reject contact, delete suspicious messages and avoid opening unknown links.

Report

If you receive a suspicious email, do not click on any links or attachments or provide any information. If you receive a suspicious email, you can report it to the Australian Cyber Security Centre (ACSC).

Amy’s story: a crypto cautionary tale

Amy, intrigued by a cryptocurrency investment promising high returns using her super, fell victim to a scam that led to the loss of her savings and her involvement in criminal activity.

Her story highlights the dangers of crypto scams. It will help you to recognise and avoid such fraudulent schemes and the potential consequences, including financial loss and legal repercussions that victims may face.

Amy was contacted by a man named Michael via Facebook. He was promoting a cryptocurrency investment business promising amazing returns that didn’t require an initial deposit from her bank account but rather from her superannuation.

A complex scheme

Intrigued by this, Amy engaged in further conversation with Michael. He walked her through the steps of setting up a legitimate Self Managed Super Fund (SMSF), allowing Amy to take the funds she had invested with her existing super fund and place them into a bank account, which was then invested into a fake crypto wallet/fake investment website.

As time went on, Amy would check her balance on what she believed was a genuine trading platform – it showed significant growth, her initial $30,000 deposit soaring to over $170,000. However, after hearing about instability in the crypto markets, Amy decided that it might be time to withdraw some of her profits. Amy contacted the crypto business, which advised that she would need to pay an upfront sum of $4,500 to cover taxes – funds that Amy didn’t have readily available.

Amy reached out to Michael and explained that she wanted to withdraw some of her money from her crypto investment but couldn’t afford to pay the upfront lump sum tax. Michael explained if Amy agreed to open a number of bank accounts and handle some fund transfers on his behalf that would “help to grow the Australian business”, she would be able to earn a 5% commission on each amount transferred and accumulate enough money to pay the lump sum tax.

Amy agreed to the arrangement and funds began being transferred into the bank accounts Amy had opened. Michael would call Amy and request her to “transfer $x into the crypto wallet, then purchase this specific crypto coin”. The crypto wallet would then be emptied by Michael/Crypto Investments.

How did the scam work?

Amy unknowingly fell for a crypto investment scam. Michael convinced her to open an SMSF, allowing her to access funds that were meant to be preserved until retirement. The fake crypto platform showed huge growth, giving Amy confidence in the investment and making her feel good about the nest egg she believed was growing. By quoting her high upfront costs to access the funds, Michael manipulated her into becoming an unwitting money mule, engaging in money laundering and helping the scammers deceive other unsuspecting people out of their funds.

Unfortunately, Amy has not only lost her super but has also become involved in criminal activity. The matter is now with the police and Amy faces possible prosecution for money laundering offences.

Source: MLC