David Koch: So many people say to me, I don't worry about retirement. I worry more about running out of money.
Peter Hoban: It's only natural that people would be a bit unsure of how long it's going to last because 30 or 40 years that people might be looking for retirement is a long time. The great news for people is there are actually strategies out there to help you stay on course.
David Koch: Hello and welcome to In The Hammock, the podcast and video series designed to support you and your superannuation with Brighter Super experts helping you build confidence on your path to a brighter retirement. We're here to make super and retirement feel a whole lot simpler. I'm David Koch and today we're talking about what might be the biggest single fear people have once they stop working. “Will my money actually last through retirement?” After decades spent building up your super, retirement creates a whole new challenge of turning savings into income while still enjoying life along the way. Joining me now is Peter Hoban from Brighter Super. Pete, good to see you.
Peter Hoban: David, good to see you.
David Koch: So we're only giving people guidance, aren't we?
Peter Hoban: Absolutely. It is really important for people to understand that everything that you and I will be talking about today will either just be factual information or general advice. So if any of the listeners are thinking about acting on anything that we're talking about, they really do need to consider their personal circumstances or even better, seek financial advice.
David Koch: I find there are two extremes. Those that are just so cautious about managing their money and spending and those that just in the early days spend willy-nilly and then all of a sudden get a bit of a shock and pull back. Why is retirement financially different to your working life?
Peter Hoban: Well, for a lot of people, they're moving from receiving a regular income from an employer. They're putting in their 40 hours a week or more and receiving a wage. They're moving to actually paying themselves from their own reserves. And it's only natural that people would be a bit unsure of how long it's going to last, how much it is they might be able to access, how are they going to manage that money because 30 or 40 years that people might be looking at for retirement is a long time.
David Koch: It's a big change, isn't it? Because during your working life, your employer looks after your cash flow. During your retirement, cash flow and that responsibility is yours and that's a whole different way of thinking, isn't it?
Peter Hoban: Yeah, absolutely. In fact, probably my two favourite days of the fortnight are my payday and my wife's payday. Quite often when I'm speaking to people, usually after those first few months of transitioning into retirement, it is taking a bit of adjusting, a bit of getting used to. Sometimes people might have been receiving a weekly paycheck, and they start receiving a monthly pension payment from their super or they might have been getting a fortnightly payment and they're receiving a quarterly payment. It's not out of the ordinary. It's not unusual if people are feeling, you know, a little out of sorts during that transition.
David Koch: And I suppose when you're managing it, the volatility in markets gets amplified in your own mind and emotions, isn't it? Every little thing spooks you because, you know, hey, I've got the responsibility myself now. Pete, what are some of the most common questions you get around this topic of running out of money?
Peter Hoban: The longevity of people's super is a real concern, particularly when people hear nightmare stories of stock market volatility. How are these events going to affect my balance and the amount of income that I might be able to draw from that? The great news for people is there are actually strategies out there to help reduce or even eliminate some of that stock market volatility. Being aware of how your super is invested, the investment options that it's in, and more importantly, getting good advice about what those investment options are, can help smooth out some of that volatility and increase your balance longevity.
David Koch: Let's talk about focusing on income rather than that account balance. How do you start turning that account balance into income? What are some of the options?
Peter Hoban: Probably the number one option that people do look at in retirement is actually setting up a pension account, an account-based income stream where they can leave their money within superannuation. It doesn't have to leave the superannuation space, but it gets set up in an option where they're able to receive regular payments. When people have set up an income stream pension account, they've also got access to lump sum withdrawals. So quite often I'll see people set up a fortnightly or monthly payment for their day-to-day living expenses, but if they do need to buy a new car or go on a holiday, they're able to make that lump sum withdrawal from their superannuation. A huge feature of pension accounts once people have retired, is that they're not paying any tax on the investment earnings. Not only is the money they're taking from their super tax-free, but they're not actually paying tax on the investment earnings either.
David Koch: So from what you're telling us, it is not saying how much do I have. It is saying to yourself, focusing more on “can this generate the income that I need”.
Peter Hoban: Absolutely. And the income that I need is a great starting point for your retirement planning. Not so much on thinking about a lump sum that you have to reach, but more thinking about “what is the lifestyle that I'm going to have in retirement”, “what are my income needs”, and then using that as the starting point. Once we know how much it is that you're going to look at spending when you're retired, then we can actually start working backwards to say, OK, to generate this level of income for this many years in this investment option, this is the balance that we're going to need. So, it might sound a little counter-intuitive, but if you can focus on the income first, then we can start figuring out what sort of balance it is you might need.
David Koch: Really good point. So, in your opinion, what are the biggest risks that surround our retirement savings? You've got other risks like economic risks and financial risks. We talked about market downturns, but inflation, that's a big issue at the moment. Overspending a bit too early in your retirement. What about supporting adult kids or giving too much away early on? Is that a mistake that you see people making, eroding their retirement into the future? Do you see that happening?
Peter Hoban: I think there are a few different types of risk, David. I think there's the emotional risks of fear and uncertainty. Really worrying that you're not going to be able to generate the income you need. And actually living too frugally and not enjoying your retirement. People are sometimes a bit surprised. They assume that because I work for a superannuation fund, I'm going to try and talk them out of spending their money. But I love it when a member calls me and they need to take a lump sum withdrawal to purchase themselves a new car to go on a holiday to maybe help their children out. To know that they're putting those funds to use, to using them for what they're there for is really what I'd prefer to hear rather than someone actually just leaving it there and not taking advantage of it.
David Koch: And a lot of people assume cash automatically equals safety as well. The big question, will this money last me during my retirement? A natural thing is to say, I'll put it in the safest place possible where I'm not going to lose out on it and that is my safety net. But that can work against you, can’t it?
Peter Hoban: Yeah, I mean, retirement these days can be decades. You know, 20, 30, maybe even 40 years. And when there aren't contributions coming into that superannuation balance anymore, it does need to generate a return. It's understandable that people would like to reduce their risk, but they generally do need to take some type of risk to generate the return so the super does last that 30 or 40 years. When we are talking about investment risk, it's not just about short-term volatility and the change in the balance, but also the risk that your super is not going to last that 30 or 40 years that you might need it to.
David Koch: And the purchasing power gets eroded by inflation. It's got to return a real return, doesn't it, above inflation to keep you ahead?
Peter Hoban: Everyone is aware that prices have been going up. ASFA as the Association of Superfunds of Australia, and they survey retirees to get an idea of what it is that they're spending. So, the latest figures that we have are for the June quarter of 2026 for two different lifestyles in retirement, a modest and a comfortable lifestyle. For a couple aiming for a modest retirement, that's just over $1,000 a week, just over $52,500. And for a single person, it's just over $700 a week. That works out to be about $36,500 a year. But when I am speaking to members, no one really says “I'm looking for a modest lifestyle in retirement”, most people are aiming for the comfortable standard. Now for a couple, that's just over $1,500 a week, getting up to $79,000 a year. For a single person, it's just over $1,000 a week, around $56,000 a year. Important to understand that once you're over age 60, you are taking money from your super, it's tax-free. So these figures that we're talking about, it's a completely tax-free income.
David Koch: All right, Pete, give me some smart strategies that people can use to make their super last longer.
Peter Hoban: I would always say to people, be aware of what is coming in. So what's the income that you're receiving? And be aware of what's going out. How much is it that you're spending? I do understand why people sometimes don't have a budget. It can seem overwhelming. There are so many things that we have to pay out these days. You know, that you've got your insurance or your utilities, kids' school fees, pets, food. Which is your essentials? For people who need a starting point, the Government Moneysmart website has a brilliant budget calculator on there, a spreadsheet that you can download. For people who are looking for a bit more detail, they could have a look at the As for Retirement Standard budget breakdown. That one has about 50- or 60-line items in it. Everything from haircuts to car maintenance to private health insurance to charitable donations.
David Koch: And I suppose it's looking at the detail in your superannuation, the investment mix, the fees, consolidating accounts. There's downsizing considerations that could make your money last longer in retirement as well, aren't there?
Peter Hoban: That's something that we get a lot of inquiries about at our seminars, the downsizer contribution. So depending on your personal circumstances, there are some criteria that you do need to meet. And I definitely recommend anyone speaks to their superannuation fund before considering a downsizer contribution. But people may actually be able to contribute quite large lump sums, potentially up to $300,000 per person into their superannuation from the sale of the home. And you don't actually have to downsize, but if it proceeds from the sale of the home, a few of the conditions there may be able to actually give your super a pretty healthy boost in the lead-up to retirement.
David Koch: And delaying retirement, does that make a big difference?
Peter Hoban: It can. We've got a great retirement income calculator on our website. And one of the settings that you can play with there is your actual retirement age. And I'm quite surprised when I'm sitting with members and we might have a look at changing the retirement age from 60 to 62, and seeing what the impact of those extra couple of years of contributions and those extra couple of years of investment earnings can make. But it doesn't have to be an all-or-nothing sum. People can look at transitioning to retirement. They might have a look at going down to four days a week or three days a week to just dip their toe into the retirement pool and start to see what their spending is going to be like when they're maybe not working full-time anymore. So, if the superannuation environment is always changing, it doesn't make sense that your retirement plans would stay the same at age 60 as they would maybe be at age 70 or age 80. Having a review at least once a year, just knowing where your money's invested, how it's been performing, what are the fees that you're paying for your superannuation, they can help you stay on course.
David Koch: Yeah, and you get a lot of confidence having a plan, don't you? It's sort of that assurance that you've got to plan, a blueprint, that's going to take you forward. It sort of takes the emotion out of it, doesn't it?
Peter Hoban: If you have control, you have that confidence. I've had members tell me that it actually feels great when they're at a barbecue and someone else is there saying, oh, I don't know how much super I pay. I know it goes in every month. I don't know how it's invested. I guess it's in the safest option. I don't know when I'm going to retire. I'll probably have to work until I can get the Age Pension. And they've said to me that after having a couple of conversations with the fund, being the person who's standing there and just thinking to themselves, I don't know how much I'm contributing. I know where my money's invested and I know what my retirement target is. They feel great about it.
David Koch: Do you find there can be a difference in confidence, trust, knowledge within couples that partners need to be on the same page?
Peter Hoban: Definitely. In the same way that everyone's personal circumstances is different, everyone's attitudes towards risk return is different, within couples, even with what they're looking to do in retirement. When my parents retired, my dad sort of said, okay, I want to go to India. I've always wanted to go to India. Whereas my mum said, well, that's the first I've ever heard of that, and I have no interest at all in going to India. So I'm going on a cruise with my sisters, and I ended up taking my dad to India. Couples really need to plan their retirement as a unit because they may not, but the government say, for example, for Age Pension purposes, they are going to look at them as a couple. So if you can get into that way of thinking prior to retirement, it's definitely going to ease the transition.
David Koch: What are the key things that you want a listener or a viewer to take away from this session?
Peter Hoban: I'd love to see everyone who's listened to this session to consider five practical things that can help them feel more confident about making their money last in retirement.
The first one is to know what you need to spend. Starting with a simple retirement budget so you can understand your regular income, essential costs, lifestyle spending, and likely future costs such as your health care.
Number two, think about retirement income. Options like setting up an account-based pension may provide regular payments while keeping the money invested.
Number three, review your investment mix. Retirement can last decades so your money may still need to grow as well as provide that income. Understanding how your super is invested can help you consider whether it's right for you.
Number four, please check in on your super regularly. Reviewing your balance, performance, and the fees each year can help you stay on track.
And number five, get help before making big decisions. Before making large withdrawals or contributions, investment changes, or choosing retirement income options, consider speaking with your super fund or a licensed financial advisor.
If something seems too difficult, your superannuation fund is probably going to be more than happy to help you with it. Brighter Super offers all types of advice as part of membership for our members. They can get advice around their contributions, advice around their investment options. They can speak to a financial advisor through what we call a Retirement Health Check to get a projection of what their balance might be at a certain age and what sort of income they might be able to draw for it. Really start to take advantage of the services that are out there.
David Koch: Thanks for joining us.
Peter Hoban: David, it's been a pleasure.
David Koch: Thank you for watching In the Hammock brought to you by Brighter Super. If you enjoyed this, share it with someone thinking seriously about retirement income, and make sure to follow or subscribe to watch or listen to future episodes. And also, keep building your confidence on your path to your brighter retirement. We'll see you next time.
Disclaimers:
In pension phase, payments, withdrawals and investment earnings are generally tax free, depending on individual circumstances. Learn more at ato.gov.au
Figures quoted are current for 2026/27 financial year. General information only - other conditions and eligibility requirements may apply.
From 1 July 2026, Division 296 tax may apply an additional 15% on investment earnings on the portion of a total super balance exceeding the large super balance threshold of $3 million (and a further additional 10% on the portion exceeding $10 million). It applies across both accumulation and pension accounts. Learn more at ato.gov.au - Division 296 tax.
Learn more about account-based pension minimum payments at https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/paying-smsf-benefits/income-stream-pension-rules-and-payments#ato-Minimumpensionstandards
Source: ASFA retirement standard June 2026 quarter for those aged 65-84 who own their own home. https://www.superannuation.asn.au/consumers/retirement-standard
Totals may not exactly equal the sum of components due to rounding of price adjustments.
Learn more about the MoneySmart budgeting tool at https://moneysmart.gov.au/budgeting/budget-planner
Downsizer super contributions cannot exceed the proceeds from the sale. The contribution counts towards the transfer balance cap and may affect Age Pension entitlements.
Learn more about downsizer super contributions, rules and full eligibility at ato.gov.au
Brighter Super Trustee (ABN 94 085 088 484) (AFSL 230511) (the Trustee) as trustee for Brighter Super (ABN 23 053 121 564) (RSE R1000160) (the Fund). Brighter Super may refer to the Trustee or the Fund as the context may be. Brighter Super products are issued by the Trustee on behalf of the Fund. The information contained is up to date at the time of publishing and may change. This podcast may contain general advice, which has been prepared without taking into account your individual objectives, financial situation or needs. Consider the appropriateness of the advice to your objectives, financial situation and needs before acting on the advice. Brighter Super representatives and partners are authorised to provide advice on Brighter Super products and superannuation in general. See our Financial Services Guide (FSG) for more information.
You should also obtain and consider the Product Disclosure Statement (PDS) before making any decision to acquire any product or contribute additional amounts to your Brighter Super account. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the PDSs and TMDs at https://brightersuper.com.au/pds.
