Financial Fitness in Retirement: Why Planning Matters More Than Ever when in Retirement.
With over 4.2 million Australians now retired, the importance of staying financially organised in later life has never been more critical. As life expectancy increases and cost-of-living pressures mount, retirees face a complex landscape of decisions around income, superannuation, aged care, and legacy planning.
At the Educational Seminar held in Ballina this September, financial adviser Craig Phillips of Phillips Wealth Partners delivered a compelling message: retirement is not the end of financial planning—it is the beginning of a new phase that demands clarity, adaptability, and strategic thinking.
“Retirement can last decades. Without a plan, people risk outliving their savings or missing opportunities to improve their lifestyle,” said Craig Phillips, Senior Financial Adviser and Aged Care Specialist.
The Retirement Reality in Australia
According to the Australian Bureau of Statistics, the average age of retirement is 56.9 years, with most retirees relying on the Age Pension as their primary income source. Yet, many Australians are retiring without a clear strategy for managing their finances over the long term.
A growing number of Australians are entering retirement with deep financial uncertainty, as the cost of living continues to rise. According to the Australian Seniors Cost of Living Longer Report, 55% of retirees say they are struggling to manage expenses on the Age Pension, and 69% do not believe the pension alone will be enough to cover their living costs.
The pressure is so intense that 1 in 5 retirees are delaying or forgoing medical treatment due to cost, while 79% are cutting back on everyday essentials, including heating, groceries, and social activities.
Income Layering and Longevity Planning
One of the most practical strategies discussed at the Ballina seminar was income layering—a method of combining different income sources to create a stable and flexible financial foundation in retirement. Rather than relying on a single stream, retirees can draw from a mix of account-based pensions, annuities, investments, and government support to meet both essential expenses and lifestyle goals.
Craig Phillips, Senior Financial Adviser at Phillips Wealth Partners, likened it to building a financial safety net.
“We help clients match their income to how they actually live—covering the basics like bills and groceries, while also making room for travel, hobbies, and unexpected costs. It is about creating confidence and control.”
This approach is especially important given the structure of the Centrelink Age Pension, which pays up to $1,149 per fortnight for singles and $1,732.20 for couples combined. Eligibility is based on income and asset thresholds, meaning that careful planning can significantly affect how much support retirees receive.
By layering income sources, retirees can better manage market fluctuations, plan for longevity, and potentially avoid the stress of running out of money.
Case Study: Paul and Jean
To illustrate the power of strategic advice, the seminar featured the story of Paul and Jean, a retired couple living modestly on $45,000 per year. Concerned about running out of money, they were drawing only the minimum from their account-based pensions and delaying travel plans.
After consulting with their financial adviser, they restructured their finances by investing in LifeIncome policies. This move allowed them to access the Age Pension 12 years earlier, unlocking $695,351 in additional income by age 100—including $575,204 in Age Pension benefits.
“This is a perfect example of how advice can transform retirement outcomes,” said Phillips. “It is not just about numbers—it is about enabling people to live the life they imagined.”
Understanding Superannuation Tax and Estate Planning
Superannuation is a vital source of retirement income for most Australians—particularly those without defined benefit pensions. But what many retirees do not realise is that not all superannuation is treated equally when it comes to estate planning.
The seminar shed light on the taxable components within superannuation, which can significantly affect how much of your savings actually reaches your loved ones. If your super is left to a non-dependent, such as an adult child or your estate, the taxable portion may be subject to tax rates of up to 17% or even 32%, depending on how the funds are classified.
Craig Phillips urged attendees to take action:
“These details are not always visible on your statement. You need to call your fund and ask, ‘Can you please tell me the taxable breakdown of my super?’ That one question can make a huge difference to your estate planning.”
Understanding the tax structure of your superannuation—and who your beneficiaries are—can help you minimise unnecessary tax and ensure your legacy is preserved. Strategic planning, such as adjusting beneficiary nominations or considering alternative structures like investment bonds, can help reduce the tax burden and avoid delays in estate distribution.
Digital Estate Management and Planning Your Legacy
Estate planning today goes beyond wills and paperwork—it now includes managing your digital footprint. The seminar highlighted how retirees can take control of their affairs by consolidating bank accounts, digitising financial records, and organising passwords for online services. These steps not only make life easier for loved ones but also help avoid delays in estate administration.
One critical point raised was the importance of nominating beneficiaries for superannuation and other financial accounts. According to MoneySmart, failing to do so can result in funds being tied up in probate for months or even years, especially if disputes arise or trustee discretion is involved.
Craig Phillips emphasised that legacy planning is not just about who gets what—it is about how they receive it.
“Choosing the right structures—like testamentary trusts, investment bonds, or non-estate assets—can help reduce tax, avoid family conflict, and ensure your wishes are carried out efficiently.”
These tools offer varying levels of tax efficiency, accessibility, and legal protection, and can be tailored to suit individual goals, whether that means supporting family, donating to charity, or preserving wealth across generations.
As retirement becomes more complex, Australians are urged to seek professional advice and take proactive steps to secure their financial future. Whether it is navigating superannuation tax, accessing government benefits, or planning a legacy, the message is clear: financial fitness in retirement is not optional—it is essential.
For more information or to book a discovery meeting, visit www.phillipswp.com.au or call 1300 10 22 33.
DISCLAIMER: This article is based on content presented by Phillips Wealth Partners Pty Ltd (ABN 74624858420), trading as Phillips Wealth Partners. Craig Phillips is an Authorised Representative (No. 334567) of Fintegrity Wealth Advisers Pty Ltd (ABN 89653321487 AFSL 534971). The information provided is general in nature and does not constitute specific aged care, taxation, superannuation, retirement investment or social security advice. It is based on current laws, rulings, and interpretations as at the date of the seminar. Readers should seek personalised advice before making financial decisions.