Retirement should feel like freedom, not financial guesswork. Yet many Australians worry about whether their nest egg will stretch 20‑plus years, how much they can safely withdraw, and when (or if) the Age Pension will chip in. A clear, evidence‑based plan can turn those doubts into confidence.
You might be asking yourself:
‘How can I generate income in retirement’
‘Should I be investing for retirement income’
At Stockspot, we help Australians make calm, confident decisions about their financial future, especially during key life milestones, like planning for retirement income. Stockspot Consultation gives clear guidance on how investing into a diversified portfolio could help you translate your retirement income goals into a retirement‑income strategy.
This service is free and obligation free.
Common pain points for new retirees or people planning for retirement
- Fear of “running out” of money. Australians are living longer, and planning for a longer retirement can help you avoid financial stress. Aligning your risk to your age can also help decide how aggressively you could invest.
- Complex draw‑down rules. Minimum super‑pension withdrawals start at 5 % p.a. from age 65‑74 and rise with age. Understanding what you can draw down from your super will also help you understand how much additional income you may wish to generate.
- Age pension confusion. From 1 July 2023 the qualification age for your age pension is 67, with income and assets tests that some may find hard to navigate.
- Market volatility. Understanding risk in your investment portfolio can avoid market volatility causing devastating dents to your income investment.
- Chasing yield traps. Over‑weighting your investments to yield-generating products at the detriment of capital growth could see investors missing out.
Steps to get started with your retirement income plan
- Pause and take stock.
List all your retirement income sources; super, personal investments, property rental income, casual work and note all fixed or essential expenses. - Confirm entitlements.
Use Services Australia’s Age‑Pension estimator or consult a professional to understand income/asset‑test thresholds. - Stress‑test your spending.
Run scenarios (e.g. market drop, aged‑care costs) before locking into a withdrawal rate. - Park cash smartly.
While planning, holding 3-6 months’ living costs in a high‑interest savings account or cash ETF like Stockspot Savings could be beneficial to avoid forced selling during downturns.
Smart financial decisions to make when investing for retirement income:
- Diversify across asset classes
Low‑cost index ETFs spanning Australian shares, global shares, bonds and gold smooth returns and lower downside risk compared with concentrated dividend portfolios. Stockspot research shows broad‑market ETFs have historically delivered steadier income with fewer blow‑ups. - Align your risk to your age
As retirement approaches, gradually tilting from growth to defensive assets means large market falls hurt less when you start drawing income. - Optimise your withdrawal strategy
The traditional 4 % rule is a useful yard‑stick but can be refined. Dynamic approaches, for example adjusting withdrawals after good or bad years, can extend portfolio longevity and cushion lifestyle shocks. Adopting a total return approach can also see you opting for a lower risk strategy compared to investing solely for income returns, without sacrificing your investment balance. - Minimise tax and fees
Keep as much of your return as possible.
Hold income‑producing assets inside super or an account‑based pension. After age 60, these earnings may be tax-free.*
*The content of this blog is not intended to represent or be a substitute for specific taxation or legal advice and should not be relied on as such. Any taxation, legal and other matters referred to on this are based on Stockspot’s interpretation of existing laws and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.
Explore how Stockspot can help you plan for your retirement income
Stockspot advisors can discuss with you what your retirement goals are, and help you plan to achieve them. A financial strategy can ensure all your savings supports those goals, and are not losing their buying power.
Through Stockspot Consultation, we offer investment guidance to help you:
- Understand your investing goals with your savings to reach your retirement income goals
- Align your portfolio with your values – such as sustainable investing
- Invest in a smart, low-fee portfolio
- Automate top ups and rebalance your portfolio to remove emotion from decision making
- Make informed decisions without pressure
- Assist with creating an ETF only superannuation for you or help with your pension requirements.
Whether you’re looking for a little extra boost to your retirement savings, or planning to build long term income to support your retirement goals, our data‑driven approach aims to grow and protect it for decades.
We advocate for simple wealth management solutions that don’t cost you your returns. Both data and feedback from Stockspot clients indicate that complex strategies often underperform simpler investment structures, like those offered at Stockspot.
At Stockspot, we advise our clients to invest in a diversified selection of ETFs. This strategy has consistently outperformed similar funds over the long term.
Want to know more about Stockspot?
Stockspot is Australia’s largest online investment adviser, helping over 16,000 Australians grow and protect their wealth with evidence-based, low-cost portfolios.
Find out about our portfolio performance here.
