| Your concerted effort to work towards a solid retirement plan has likely been fruitful. However, as you move further into life after work, inevitable changes mean that ongoing monitoring and optimising is vital—timeline adjustments, lifestyle changes, and updated regulations may all impact your original planning.
Many retired professionals can, over time, discover fragmented asset allocations, outdated investments, or unrealistic timelines. Small, underperforming elements of your portfolio can also compound into big losses; for example, are fees quietly eating into your returns? Are there updated drawdown strategies you could be actioning? When you add regular account reviews to your process, you can mitigate the risks of a leaky boat and see immediate ROI. How to go about reassessing financial goals and timelinesYou will have set your goals earlier in the process—considering daily cash flow, travel, health care, and a buffer for unexpected costs—but this is not a set-and-forget model. With the realities of retirement, you may be feeling like life is slower than expected. Or perhaps, the newfound space is breeding ideas that require financial input. Whichever way the pendulum has swung (and whatever the distance), reassessing your financial goals regularly is beneficial. At the very least, it reduces the risk of ‘surprise shortfall’. Ongoing monitoring and optimisation ensure that your investments stay relevant as changes to market conditions, tax laws (think: superannuation caps, transfer balance caps, minimum pension rates), and new opportunities impact your financial position. Bigger outlays such as helping children enter the property market or a large philanthropic donation can mean significant changes to your interest calculations, drawdown strategies, and tax positioning. Optimising budgeting and cash flow strategiesWhen you make a habit of scheduling regular financial check-ups, there will be an opportunity to refresh your budgeting and execute optimised cash flow strategies, such as: Tax-advantaged income sources: As a tax-free option, super withdrawals are often a first port of call; however, your portfolio may benefit from a sequencing withdrawal strategy to draw on taxable sources first to smooth out the hit. Income layering for stability: Layering your income streams ensures that your lifestyle needs are insulated (as much as possible) from market volatility. An example of layering is to cover living expenses through more predictable sources like pension payments and term deposits; then, covering discretionary spending with dividends and managed fund distributions. Big-ticket-items can be drawn from investment portfolios or even strategic borrowing. Optimal drawdown strategies: There are many drawdown strategies to execute in retirement. For some, the bucket strategy is the best option, but for others, a dynamic plan allows you to meet your goals. While many retirees only withdraw the ATO minimum pension rates, modelling higher rates can be optimal. Strategic lending: Even in retirement, you may use investment loans or secured lending for large purchases to preserve invested capital. Private banking credit lines can also smooth out cash flow without triggering CGT. Coordinated estate and intergenerational goals: Many people consider a ‘gifting while alive’ approach and that takes planning. Structured cash flow can accommodate intergenerational transfers without jeopardising retirement needs. All approaches require legal considerations to play their part. Moving from an asset diversification strategy to consolidation: Reviewing and consolidating your accounts over time is a key aspect of ongoing financial planning in retirement. Multiple, diversified accounts may have been beneficial in the past, but as your motivations change from protection of assets to financial empowerment, you may find higher value in consolidation. Bringing together investments, company stock, savings, and super accounts can mean reducing unnecessary fees, improved financial visibility, and stronger negotiating power when your wealth is consolidated under one roof. Even less than a 1% reduction in platform/administration fees (very achievable once you cross higher thresholds) compounds significantly over a 20-30 year period. Consolidation can also streamline tax and compliance with simplified ATO reporting and CGT management. These kinds of proactive check-ups can keep your financial position performing. Restructuring underperforming investmentsJust like account consolidation, efficiencies and benefits can also be found by regularly screening for outdated and/or underperforming investments:
Staying alert to new opportunities keeps your portfolio efficient, relevant, and aligned with your goals throughout retirement while also considering changing market conditions. For retirees, volatility is more damaging than for those still accumulating their wealth. Staying financially active with Capital PartnersStaying financially active in retirement is critical to ensure that your plan is on track or evolving alongside you. One thing that doesn’t stay stagnant is the financial world—account structures that were once optimal can become an unnecessary drain, the best drawdown strategies evolve, and inflation rates and new legislation can create necessary changes that didn’t previously exist. Schedule a conversation with a Capital Partners adviser to keep your retirement wealth working for you.
References Investopedia. (n.d.). Performance drag. Investopedia. https://www.investopedia.com/terms/p/performance_drag.asp SuperGuide. (n.d.). Bucket strategy: A solution for your retirement income plan. SuperGuide. https://www.superguide.com.au/in-retirement/bucket-strategy-solution-retirement-income-plan The Conexus Institute. (2024, July 16). Retirement explainer 5: Drawdown strategies (Revised). The Conexus Institute. https://theconexusinstitute.org.au/wp-content/uploads/2024/08/Retirement-explainer-5-Drawdown-strategies-20240716-Revised.pdf The Law Brigade. (n.d.). The great wealth transfer: Legal considerations for estate planning and asset protection in Australia. The Law Brigade. https://thelawbrigade.com/general-research/the-great-wealth-transfer-legal-considerations-for-estate-planning-and-asset-protection-in-australia/ Podger, A., & Breunig, R. (2021). Retirement incomes report. Crawford School of Public Policy, Australian National University. https://crawford.anu.edu.au/sites/default/files/2025-04/Retirement%20Incomes%20report%20Podger_Breunig%202021%20compressed.pdf |
