“It’s easy to feel uncertain when markets are volatile or the headlines seem overwhelming. In my experience, having a well-considered plan and someone to guide you through the decisions can provide enormous peace of mind. Often it’s not about making dramatic changes—it’s about understanding your options and knowing you’re still on the right path.”

– Ursula Boorman, Managing Director, Direct Advisers

Markets have lurched from one direction to another; interest rates have lifted faster than expected, with the possibility of more increases in the months ahead, and there’s no end in sight to the global uncertainty.

While the market shocks are interspersed with periods of relative calm, The Reserve Bank of Australia (RBA) warns that the disruption could pose challenges to our financial stability.ⁱ

Nonetheless, the RBA says Australia is “well placed” to handle the uncertain times.

For those heading into retirement and focused on income security rather than speculation, having a clear view of the different retirement income options can help.

Account-based pensions

One of the most common retirement income options is an account-based pension, often started using superannuation savings. Your money stays invested, and you draw a regular income from the account, choosing the payment amount (subject to minimum annual withdrawals set by law) and the investment mix.ⁱⁱ

The appeal here is flexibility. You can adjust payments and investment options, and the remaining balances can be left to beneficiaries in your will.

On the other hand, account-based pensions are directly exposed to market movements. So, when markets fall, your account balance may be affected. That could reduce your future income, particularly if you continue withdrawals during a market downturn.

The risk is most significant in the early years of retirement. Losses combined with regular withdrawals can permanently reduce how long savings last, a challenge known as sequencing risk. Understandably, many retirees respond by spending less than they could afford, even when markets recover, simply to avoid the fear of running out of money later in life.ⁱⁱⁱ

Lifetime annuities

Annuities offer a different approach. In return for a lump sum investment, annuities pay a guaranteed income either for a fixed period or for the rest of your life. Because the payments are not linked to daily market values, they could deliver a strong sense of certainty, particularly when it comes to covering essential living costs.^iv

Lifetime annuities can provide a guaranteed income stream for life and may help reduce the stress that can come from market volatility.

While Direct Advisers has always considered a broad range of retirement income options, the low-interest-rate environment of the past decade meant that many lifetime income products were less attractive than alternative retirement strategies. Locking in capital when interest rates were at historically low levels often limited the long-term value these products could provide.

As interest rates move closer to historical averages, we are seeing renewed interest in lifetime income streams and are actively researching the latest solutions available in the market. For some retirees, these products may once again play a useful role in creating greater certainty and stability in retirement income planning.

Combining income streams

Rather than choosing between flexibility and certainty, retirees may benefit from using multiple income streams. This approach combines a guaranteed income source with a more flexible one.

For example, a lifetime annuity might be used to cover the basics such as housing, food and utilities, while an account‑based pension funds discretionary spending, travel or unexpected expenses. Research suggests this could lead to more stable income and greater confidence to spend, even when investment markets are volatile.^v

By ensuring your essential expenses are covered regardless of market conditions, you may be less likely to panic or cut spending during downturns.

The Age Pension

The Age Pension is an important part of the retirement income picture for many. It provides a government-backed, inflation‑linked income that is not affected by market performance. For eligible retirees, it can act as a valuable safety net later in life, particularly if personal savings decline.

Some lifetime income products receive concessional treatment under the Age Pension assets test, which can improve eligibility or payment levels. Understanding how different income streams interact with Centrelink rules can affect retirement outcomes.^vi

Retirement income is about what fits, not forecasts

There is no single best retirement income option. Each comes with trade‑offs between flexibility, risk, growth potential and control. What matters most is how well an income strategy matches your spending needs, risk tolerance and desire for certainty.

The right structure could help to reduce stress and support more confident spending in retirement. Uncertainty doesn’t have to mean insecurity.

Confidence Comes From Having a Plan

Periods of uncertainty can leave many people wondering whether they’re doing the right thing. Whether you’re approaching retirement, managing your investments, planning for aged care, or navigating a major life change, it’s natural to have questions about what comes next.

The good news is that you don’t have to figure it all out on your own.

At Direct Advisers, we’ve been helping clients navigate life’s transitions, market cycles, and changing circumstances for decades. While we can’t control what happens around us, we can help you put a plan in place that reflects your goals, adapts as life changes, and gives you confidence in your decisions.

As Ursula often says:

“Peace of mind comes from knowing you have a plan—and that you’re not facing life’s financial decisions alone.”

If you’re feeling uncertain about your next step, or simply want reassurance that you’re on track, we’d love to have a conversation.

Book a chat with Ursula and the Direct Advisers team today and let’s talk about what’s important to you and the future you’re working towards.

👉 Book a Chat: Book a Chat with Direct Advisers

i The Global Macro-financial Environment | Financial Stability Review, March 2026 | RBA

ii Income streams | Australian Taxation Office

iii Which super funds offer income for life? | SuperGuide

iv, vi Income streams – Age Pension | Services Australia

v How product layering can support retirement outcomes | ASFA

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That’s why your financial strategy shouldn’t be static. It shouldn’t be one-size-fits-all. Instead, it should evolve with you adapting as your life shifts from one milestone to the next.

As Ursula Boorman, Managing Director of Direct Advisers, explains:

“Life’s Transitions don’t just happen to others, they can happen to any of us. The financial choices you make today will shape your next chapter. Advice isn’t about predicting the future, it’s about preparing for it with confidence.”

Transitions Are Universal — But Often Under-Prepared For

Major life events bring emotional and financial complexities. Yet many Australians feel they’re navigating these transitions without the confidence they deserve.

According to AMP’s Retirement Confidence Pulse (2025):

• Only half of Australians feel confident about their retirement prospects.
• Confidence is significantly lower among women and those experiencing separation or life changes.
• People in their 40s, often balancing care for children and ageing parents, report the lowest confidence levels overall.

These data points reflect the reality that even well-intentioned plans can fall out of step with life’s circumstances, especially when expectations shift.

Advice Matters at Every Milestone

Financial advice isn’t just for the wealthy or retired. It plays a valuable role at every stage of life — from building a foundation early in your career to pivoting after separation, to protecting what you’ve worked so hard to build.

The Value of Advice Consumer Research (2025) by the Financial Advice Association of Australia (FAAA) highlights the benefits:

• Australians with financial advice consistently report higher financial confidence
• They experience lower stress about money
• Advice helps households stay focused on long-term goals, even through uncertainty
• And people say it gives them more clarity and control over their future.

This isn’t just numbers, it’s wellbeing.

Life’s Transitions, The Direct Advisers Approach

At Direct Advisers, we call this phase Life’s Transitions. The journey isn’t just about super balances, investments, or insurance, it’s about you and the realities of the life you’re living now.

Our dedicated Life’s Transitions page outlines how we support clients through:

• Separation and divorce
• Loss of a partner
• Caring responsibilities
• Career change or redundancy
• Retirement planning
• Estate and legacy decisions

Each transition brings practical questions and emotional weight and a well-timed conversation can make all the difference.

Final Thought: Plan for Life, Not Just the Numbers

Transitions are inevitable. Feeling uncertain doesn’t have to be.

The power of advice lies in its ability to evolve with you helping you make confident choices through change, safeguard what matters most, and embrace your next chapter with purpose.

If you’re facing a milestone, big or small, taking a proactive step now can bring clarity tomorrow. You don’t need to have all the answers; you just need someone on your side to help you navigate the questions.

Ready to begin your next chapter with confidence?
Reach out to the team at Direct Advisers for a Life’s Transitions conversation that respects your goals, your story, and the life you want to build.

The post Life’s Milestones and Transitions: Your Strategy Should Evolve With You appeared first on Direct Advisers.

Thoughtfully planning out what it is you want to achieve and how you go about achieving it, can provide clarity and structure and ensure you stay on track.

As we look toward to the year ahead, now is the perfect time to set out a framework that supports lasting progress, not for the first few months, but throughout the whole year.

We explain how setting realistic goals can help you grow, stay motivated and create a year you can be proud of.

Reflecting on the past

Before we start to look forward, we must look back. Reflect on what you achieved in the past year – think about where you felt a sense of accomplishment as well as the areas that you may have fallen a little short and may need improvement for the year ahead.

Writing each of these down makes it easier, so you can avoid repeating the same patterns, especially for the things that didn’t go according to plan.

Next, you need to align your goals to what matters to you. What are your true values? Many goals are set based on what we think other people expect or what we think we should be doing. If you’re creating goals for these reasons, you are probably setting yourself up for failure.

Some considerations for values that are important to you could be health and well-being, career growth, family and relationships or financial stability.

Building the framework

Now, we’ve all heard about setting SMART goals (Specific, Measurable, Achievable, Relevant and Time- bound), but what about ‘systems’?

Author of Atomic Habits, James Clear, states that when we are not achieving our goals, or breaking certain habits, it may not be about the goals that are being set but the system we are using to achieve the goals.

Clear uses a framework called Four Laws of Behaviour Change, which set rules around achieving goals, or breaking bad habits. The four laws are as follows:

Law 1 – Make it obvious

Law 2 – Make it attractive

Law 3 – Make it easy

Law 4 – Make it satisfying

These laws are designed to create a simple, effective framework to keep you focused on your goals.

Implement and execute

Here are some examples of how you can use this system to create simple habits to achieve your goals.

Law 1: Make it obvious

• Design your environment so the cue for your habit is right in front of you

Example: Put your gym clothes on the bed the night before

Law 2: Make it attractive

• Pair habits with something you enjoy

Example: Only listen to your favourite podcast while walking

Law 3: Make it easy

• Reduce friction-make habits as convenient as possible
• Start small:
  • Do 2 push-ups
  • Meditate for 1 minute

LAW 4: Make it satisfying

• Reward yourself immediately after the habit
• Track habits so you feel progress
• Create a “don’t break the chain” streak

Cultivating small daily habits will keep you motivated. Fostering sustainable habits and seeing the gradual change each day will give you the dopamine hit you need to continue on your journey. When you start to feel overwhelmed, the process feels like a hard slog, and you are less likely to stick to it.

Remember, you don’t need to overhaul your life; it’s about creating small habits that are going to be more manageable to help you achieve big goals, whatever they may be.

Set yourself up for kicking goals

Setting goals for 2026 is an opportunity to shape your life intentionally rather than drifting through the year on autopilot, which we tend to do if we don’t carefully and thoughtfully plan ahead.

With reflection, clarity, systems, and flexibility, your goals can become powerful tools for transformation. Start early, stay curious, and give yourself permission to evolve along the way.

Here’s to a purposeful, aligned, and fulfilling 2026.

We can help you to align your plan with your values while keeping your long-term goals on track. Contact our team here.

The post Designing the future, you want appeared first on Direct Advisers.

Retirement isn’t about stepping back. It’s about stepping into a new chapter where you decide what comes next.

Even if you are not yet there, and retirement is still a way off, it’s never too soon to think about who you want to be, what gives you joy, and start to gravitate towards living your dreams.

Let go of conformity, embrace freedom

Of course, you can live your dreams at any stage of your life but the exciting part about retirement is that you are no longer bound by the expectations that shaped your earlier years. You don’t have to earn a living anymore, so what you do with your time can be driven purely by passion, curiosity, or purpose.

For much of our lives, we learn to conform. We wear the suits, follow the rules, meet the deadlines, and often suppress our wilder ideas or untapped creativity to fit the roles expected of us, whether as professionals, parents, providers, or partners.

But something shifts later in life. With age often comes clarity, and a new kind of confidence. Retirement can be the moment when we stop asking what others think we should do and instead, begin to ask what our hearts are calling us to do.

This is your opportunity to push boundaries, shed old labels, and express your true self without apology. It is a time to honour your inner voice, whether that means embracing bold adventure, creating, starting over, or simply doing what feels meaningful to you.

Unconventional can be unforgettable

Retirement can be the perfect time to try something unexpected or bold. Consider these inspiring examples:

Isabella Rossellini

After being let go by Lancôme at age 45 for being “too old,” Rossellini redefined what aging looks like. She went back to school in her 50s to study animal behaviour, wrote books, bought a working farm, and later, in a full-circle moment, was rehired by the same brand that once let her go. Now in her 70s, she continues to model, act, write, and farm, all on her own terms.

Diana Nyad

At 64, Nyad swam from Cuba to Florida, a journey of 110 miles through open ocean, after four earlier attempts. It was a dream she had carried her whole life, and she proved that persistence and passion don’t expire with age.

Harriette Thompson

Harriette ran her first marathon in her 70s and, at 92, became the oldest woman ever to complete one. Her story is a celebration of physical endurance and mental strength at any age.

Anthony Hopkins

Well into his 80s, the Oscar-winning actor continues to create. He acts in major films, paints, composes music, and shares his work with younger generations online. He shows that creativity and passion do not have a use-by date.

Mother Teresa

Mother Teresa received the Nobel Peace Prize at age 69 for her work with “Missionaries of Charity,” a world-wide organization that helped the sick, the poor, the dying and left an incredible legacy of benevolence that continues today.

Finding your joy

This chapter of life gives you the rare opportunity to redefine yourself, or finally be yourself, in ways that may not have been possible earlier in life.

Whether your dream is to travel the world, volunteer overseas, write a novel, take up painting, or pursue a long-held interest that never fit into your working life, now is your chance.

And it doesn’t have to follow tradition. Retirement can be adventurous, creative, active, or entrepreneurial. It can be spent on a cruise ship, in a mountain village, running marathons, or making movies. And you don’t have to set the world on fire – if what makes you happy is watching your roses bloom, then go for it! The point is, this part of your life is yours to shape.

Retirement is a time to live fully and follow your own path to what brings you joy.

What will your next chapter be?

Our team are online and ready to help you plan your next steps. Contact us here.

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But the second-best time? Today.

About two-thirds of Australians retire earlier than they anticipated because of unexpected events such as job loss or redundancy, they need to care for a family member, have a sudden illness or injury, problems at work or a partner’s decision to retire.ⁱ

But, whether you’re in your 50s, 60s, or even beyond, it’s never too late to take meaningful steps toward a more secure and fulfilling retirement.

The good news is that with the right guidance and a few smart moves, you can still build a retirement plan that reflects your values, supports your lifestyle and gives you peace of mind.

Where to begin

Before you make any changes, it’s important to understand your current financial position. This includes:

• your superannuation balance
• other savings or investments
• debts such as your mortgage, credit cards and personal loans
• expected retirement income sources including the Age Pension, rental income and part-time work

Boost your super

Even if you’re starting later, there are ways to accelerate your super growth using:

• Salary sacrifice Contributing pre-tax income into super can reduce your taxable income while boosting your retirement savings.
• Personal contributions You may be eligible for a tax deduction or government co-contribution depending on your income.
• Catch-up contributions You may be eligible to add to your super but be aware of the caps on contributions.ⁱⁱ

These strategies can be especially powerful in your 50s and 60s, when your income may be higher and retirement is on the horizon.

It’s also a good idea to regularly consider your super investment options and review your risk tolerance and time horizon.

Deal with debt

If possible, getting your debt under control before you retire is a useful strategy.

You could consider using your superannuation or other savings or downsize your home to pay off a mortgage or other loans. But first, it’s essential to carefully check the tax impact, the effect on your super and whether any potential government benefits will be affected.

Reassess your lifestyle goals

Retirement isn’t just about money, it’s about how and where you want to live, how much travel you’d like to do and if you’d continue to work part-time.

Clarifying your lifestyle goals helps shape your financial strategy. It also ensures your retirement plan reflects your values, not just your bank balance.

How much will I really need?

Aim to create a retirement budget. Estimate your future expenses including housing, food, travel and healthcare and compare them to your expected income. This helps identify any shortfalls and guides your savings strategy.

You will also need to consider the amount of time you might spend in retirement. This will depend on when you retire (planned or unexpected) and how long you live. This is called longevity risk. Given life expectancy is unpredictable, there is a possibility that your retirement savings may not last throughout retirement.

Understand your entitlements

Many Australians are eligible for government support in retirement, including:

• Age Pension Based on income and assets, available from age 67 (for those born after 1957).
• Concession cards For discounts on healthcare, transport and utilities.
• Rent assistance If you’re renting privately and receive the Age Pension.

Even if you don’t qualify now, you may be able to restructure your finances to maximise future entitlements.

Review regularly and remain flexible

Retirement planning isn’t a one-time event. Life changes and so should your strategy. Regular reviews help you:

• Adjust for market movements or legislative changes
• Update your goals and spending patterns
• Ensure your estate planning is current

Flexibility is key. Whether you retire gradually, take a sabbatical, or pivot to a new venture, your plan should evolve with you.

Next Steps: The Power Is in the Planning

Life doesn’t always unfold the way we expect. Retirement might arrive sooner than planned—through redundancy, illness, or shifting family needs—but that doesn’t mean you can’t shape a future you look forward to.

As Ursula Boorman, Managing Director at Direct Advisers, shares:

“We can’t always control when retirement happens, but we can absolutely control how prepared we are. The power is in the planning. It’s never too late to start putting the pieces together so you can live the life you want to live.”

The earlier you take action, the more options you give yourself, whether that’s boosting your super, reassessing lifestyle goals, or protecting your entitlements. Planning isn’t just about money. It’s about giving yourself the freedom and confidence to embrace what comes next with clarity and purpose.

Let’s build a retirement strategy that reflects your life, your values, and your goals, no matter when retirement comes.

Book a chat with the Direct Advisers team today and take the next step toward a future you’ve planned for, not just hoped for.

i Retirement and Retirement Intentions, Australia, 2022-23 financial year | Australian Bureau of Statistics

ii Understanding concessional and non-concessional contributions | Australian Taxation Office

The post Strategies for an unexpected retirement appeared first on Direct Advisers.

What’s Changing?

The government has confirmed that individuals with eligible legacy pensions, such as complying lifetime, life expectancy, or term-allocated pensions, will now have the opportunity to fully commute (i.e. exit or restructure) these pensions within a five-year window: 7 December 2024 to 6 December 2029.

Historically, many of these pensions received favourable Centrelink treatment, including 100% or partial asset test exemptions. Exiting them early would have triggered a reassessment of past Centrelink benefits, potentially leading to large Centrelink debts.

The Good News: Centrelink Amnesty Confirmed

On 28 March 2025, the government released the Social Security (Waiver of Debts – Legacy Product Conversions) Specification 2025, which waives Centrelink debts for those who choose to restructure their legacy pensions under the new rules.

However, this debt waiver isn’t expected to take effect until 5 September 2025, pending parliamentary disallowance periods, meaning any action taken before this date may still result in Centrelink debts.

Ursula’s Advice: Wait and Get the Right Support

Ursula Boorman, Managing Director at Direct Advisers, urges caution:

“Many of our clients are currently looking at their legacy pensions and wondering if now is the time to make a change. While the new rules open up welcome flexibility, moving too soon—before the amnesty officially takes effect—could result in significant and avoidable Centrelink debts. It’s essential to get advice before taking any action.”

Ursula also emphasises the importance of fully understanding how these changes interact with your current financial situation, retirement goals, and Centrelink entitlements.

Why Advice Matters Now

The potential benefits of restructuring a legacy pension, such as simplifying your finances or accessing more flexible income streams, must be weighed against your age pension eligibility and tax position. Each case is different, and timing is everything.

That’s why at Direct Advisers, we’re taking a tailored approach, helping each client carefully assess the best course of action before the 5 September 2025 start date.

Want to Know if This Applies to You?

If you or a family member holds a legacy pension, now is the time to start the conversation. Reach out to our team at Direct Advisers to discuss your options and create a plan that protects your entitlements and long-term financial well-being.

📚 Source Links:

• MLC Technical Update on Legacy Pensions
• Heffron: Legacy Pensions – Another Piece of the Puzzle
• ACIS: Important Changes to Legacy Pensions
• Smarter SMSF: Government Green Light for Commutation

The post Legacy Pensions: Important Changes You Need to Know appeared first on Direct Advisers.

If our working years can be regarded as the time when we aim to build up our superannuation savings, our retirement years can equally be regarded as the time when we aim to spend them. 

At least that’s the objective for most Australians. Which generally leads to the question: how do I start accessing my super funds when I do stop working, or maybe even before I stop working? 

This article focuses on the basics, including the general eligibility rules around accessing your super and how to switch your super accumulation account to an account-based pension. 

What age can I access my super? 

To legally access your super, you generally need to have met a condition of release after turning 60-years-old. 

You can do so by either stopping work completely (retiring) or by keeping working and starting a transition to retirement income stream (TRIS). 

Doing so can enable you to reduce your current working hours and use your TRIS pension payments to top up your part-time income. 

In either case, you have the options of turning on a pension income stream, making a lump sum cash withdrawal, or doing a combination of both.  

How do I start a pension account? 

Importantly, to start accessing your super, you will need to roll some or all of it over from your accumulation account into a newly created pension account. 

Those starting a TRIS continue to receive compulsory super guarantee payments from their employer (which are taxed at the normal rate of 15%) into their super accumulation account. The funds held in a pension account can be accessed, however keeping in mind that investment earnings in the pre-retirement phase are also still taxed at 15%. 

Most super funds offer pension account products and different investment options, similar to their accumulation account products. Those with a self-managed super fund should contact their SMSF accountant and/or speak to us to facilitate the super rollover and pension account conversion processes. 

You may need to contact your super fund to find out their process, which is typically as simple as lodging a request with your fund by filling out a form and providing information such as how much of you super you want to roll over, and where to. 

Once your funds are in a pension account you could then take some out as a lump sum. The Australian Tax Office (ATO) has mandated minimum annual withdrawal amounts, which depend on your age. 

There is a limit on the maximum amount that can be transferred as a tax-free retirement income stream from super to a pension account, known as the transfer balance cap. This is currently set at $2 million. The ATO keeps track of how much you transfer, and if you go over the cap it will levy an excess transfer balance tax. 

If you have more than $2 million in super you have the option of keeping the excess in your super account and paying up to 15% tax on your earnings, or you can withdraw the excess super as a lump sum. 

What are the tax considerations in pension mode? 

If you’re aged 60 or over and fully retired, any income earned on your pension assets is tax free and so are the pension payments you withdraw. 

Also, a major advantage is that the profits from any investments sold within a pension account are completely capital gains tax free. 

What are the minimum pension withdrawal amounts? 

Once you’ve rolled over some or all of your super to an account-based pension you are required by law to withdraw a minimum pension amount each financial year, which is a percentage of your account balance based on your age. 

For new pensions, the minimum withdrawal amount is calculated on a pro-rata basis from when a pension commences to the end of the financial year. 

There are restrictions on how much can be withdrawn tax free through a TRIS in a financial year if you’re under 65, until you’ve met a condition of release. The minimum withdrawal amounts is 4% of your super balance and the maximum is 10%. 

The table below shows the required minimum withdrawal rates if you’re in pension phase and are fully retired. 

Source: Australian Tax Office 

Any amounts leftover in your pension account when you die will go to your nominated beneficiaries. Depending on the type of beneficiary (reversionary, spouse, dependant or non-dependant) the amounts can be paid as an ongoing pension stream until the account runs out or as a lump sum. 

Consider getting professional advice 

If you’re wanting total financial flexibility in retirement, you could consider leaving part of your money in super, rolling over some of it into an account-based pension, and also withdrawing lump sums whenever you need to. 

There are a range of benefits from adopting a combination of your options, although there may also be potential tax consequences for both you and your beneficiaries. 

Managing the combination of a super accumulation account, an account-based pension, an Age Pension entitlement (if eligible), potential investment earnings outside of super, and irregular lump sum payments, can be highly complex. 

Using our services is a worthwhile consideration as you weigh up all of your retirement options. Contact the team here.

This article has been reprinted with the permission of Vanguard Investments Australia Ltd. Copyright Smart Investing™ 

GENERAL ADVICE WARNING 
Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) (VIA) is the product issuer and operator of Vanguard Personal Investor. Vanguard Super Pty Ltd (ABN 73 643 614 386 / AFS Licence 526270) (the Trustee) is the trustee and product issuer of Vanguard Super (ABN 27 923 449 966). The Trustee has contracted with VIA to provide some services for Vanguard Super. Any general advice is provided by VIA. The Trustee and VIA are both wholly owned subsidiaries of The Vanguard Group, Inc (collectively, “Vanguard”). We have not taken your or your clients’ objectives, financial situation or needs into account when preparing our website content so it may not be applicable to the particular situation you are considering. You should consider your objectives, financial situation or needs, and the disclosure documents for the product before making any investment decision. Before you make any financial decision regarding the product, you should seek professional advice from a suitably qualified adviser.You should refer to the TMD of the product before making any investment decisions. You can access our Investor Directed Portfolio Service (IDPS) Guide, Product Disclosure Statements (PDS), Prospectus and TMD at vanguard.com.au and Vanguard Super SaveSmart and TMD at vanguard.com.au/super or by calling 1300 655 101. Past performance information is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance. Important Legal Notice – Offer not to persons outside Australia The PDS, IDPS Guide or Prospectus does not constitute an offer or invitation in any jurisdiction other than in Australia. Applications from outside Australia will not be accepted. For the avoidance of doubt, these products are not intended to be sold to US Persons as defined under Regulation S of the US federal securities laws. © 2025 Vanguard Investments Australia Ltd. All rights reserved. 

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Let’s unpack what’s changing – and how to make the most of it. 

The SG rate hits 12% 

One obvious lift to retirement incomes is the increase in the Super Guarantee (SG) rate from 11.5 per cent to 12 per cent. That means more going into your super account. 

Your employer must now pay 12 per cent of your ordinary time earnings into your chosen super account. So, it’s a good idea to check your first payslips for the new financial year to make sure the changed rate is applied. 

If you have a salary sacrifice arrangement, note that the SG calculation applies to your total salary, as if the arrangement was not in place. 

For a quick update on what the change will look like for your super balance, check the MoneySmart calculator. 

More for retirement phase 

Beyond your regular contributions, the amount of super that can be transferred into the retirement phase – known as the general transfer balance cap (TBC) – has increased from $1.9 million to $2 million from 1 July 2025.ⁱ 

If you exceed the cap, you’ll need to transfer the excess back to your accumulation account or withdraw it as a lump sum – plus, you may pay tax on the earnings. 

If you’ve already started a retirement income stream, you’ll have a personal TBC – your own individual limit, which may be less than the general TBC. Your personal cap is based on the general cap at that time you started, adjusted for how much you’ve used and any indexation you’re entitled to.ⁱⁱ 

For example, if you started a pension with $2 million on 1 July 2025, you’ve used your entire cap. The cap doesn’t limit the amount you can hold in super. If you have more than the cap available, the remainder can be left in your super fund’s accumulation account. 

You can check your cap in ATO online services, which records all the debits and credits that make up your balance. 

Special rules apply for defined benefit income streams. 

More qualify for after-tax contributions 

The change in the general TBC to $2 million may also allow you to increase non-concessional (after-tax) contributions using the bring-forward rule. While the $120,000 annual limit on non-concessional contributions hasn’t changed, eligibility for using the bring-forward rule now applies to those with a total superannuation balance below the general TBC of up to $2 million. 

The rule allows you to bring forward the equivalent of one or two years of your annual non-concessional contributions cap ($120,000), allowing you to make contributions two or three times more than the annual cap. 

No change to contribution caps 

While more investors may now be eligible to access the bring-forward rule, the caps on both concessional (before tax) and non-concessional contributions haven’t changed. 

The tax paid on contributions depends on whether you’re paying from before-tax or after-tax incomes, you exceed the contribution caps, or you’re a high income earner.ⁱⁱⁱ 

The concessional contributions cap is $30,000 and if you have unused cap amounts from previous years, you may be able to carry them forward to increase your contribution in later years. You can make up to $120,000 in non-concessional contributions each financial year and you may be eligible for the bring-forward rule allowing up to $360,000 in one contribution. 

Not sure how the rules affect you? Talk to us today about how to stay ahead and make the most of your retirement savings plan. 

Awaiting the new $3m tax 

The proposed new tax on earnings above $3 million in super accounts, known as the Division 296 tax, has not yet been ratified by Parliament. Nonetheless, it is expected to be applied from 1 July 2025. 

The new tax doubles the tax rate from 15 per cent to 30 per cent for earnings on balances that exceed $3 million. 

An earnings loss in a financial year, can be carried forward to reduce the tax liability in future years. 

For strategies to get your super working harder for you, reach out to our team here.

i Transfer balance cap | ATO 

ii Calculating your personal transfer balance cap | ATO 

iii Concessional and non-concessional contributions | ATO 

The post Your future just got a super boost – are you ready?  appeared first on Direct Advisers.

While the idea of unlimited free time sounds wonderful at first, many people find that after the novelty wears off, there’s something important missing. Work often provides structure, purpose, and a sense of accomplishment. Without that, it’s easy to feel a little… adrift.

So, when you picture what your ideal retirement looks like, it can be a good time to think about what you still have to offer the world and consider volunteering. As well as helping others, you’ll also enrich your life in so many ways.

Enhance your life

A study commissioned by Apia found that more than half (56 per cent) of Australians over 50 years of age, are currently engaged with community or volunteer work.ⁱ And the benefits are not just the recipient of their support – it’s been proven that volunteering can boost your own happiness, your mental health, and even your physical well-being.ⁱⁱ It’s like a secret ingredient for a fulfilling retirement.

Retirement beyond the finances

Planning your retirement is more than just numbers on a spreadsheet; it’s about creating a fulfilling, meaningful lifestyle. Volunteering can help restore that sense of purpose when you are no longer working, and add structure to your days, all while benefiting others. Thinking about volunteering before you leave the workforce can give you a head start in discovering what really lights you up, and it will give you a smooth transition into the next chapter of your life.

Here are a few tips on how to get started, make your time count, and make sure you’re doing something meaningful and truly brings you joy.

Consider your skills

You have years of knowledge, skills and life experiences to draw upon and it can be enormously satisfying to use those to help others. Your contribution can reflect the skills you honed in the workplace or talents you developed along the way. Have you always been the go-to person for organising family events or helping friends with their tech problems? Think about how you can use your skills – whether that’s helping others, improving areas in your community – like gardening, or even just making someone smile.

Choose a cause that sparks your passion

Think about what has always inspired you. Volunteering is most fulfilling when it aligns with your interests and values. So, take a moment to consider what causes excite you and look for organisations that align with your passions – maybe a local food bank, animal rescue, or environmental group. Your volunteering experience should feel like a rewarding activity, not an obligation.

Start exploring early

Ideally, don’t wait until your last day of work to decide how you’ll spend your free time. Start researching volunteering opportunities in your community or online. Many organisations offer flexible, part-time opportunities, so you don’t have to dive in full force right away. There are so many options out there that can fit into your schedule.

Volunteering, however, you approach it, can open up a whole new world. Once you look for opportunities to assist others, you also enhance your own well-being in a myriad of ways. Working with other like-minded people can give you an incredible sense of community and connection, developing fantastic friendships along the way. Not to mention the sense of satisfaction you’ll feel as you learn new things and are exposed to new ideas

Consider how you can weave volunteering into your new life. It can be a way to make your retirement truly extraordinary, while also making the world a better place.

Volunteering ideas to consider

• Mentoring: Share your knowledge by helping someone in need of guidance – whether that’s through career coaching, tutoring, or life skills.
• Local charities: Get involved in your community by assisting with food banks, shelters, or organising fundraisers for causes you care about.
• Animal shelters: If you’re an animal lover, consider helping out at your local shelter, either by walking dogs or assisting with adoptions.
• Environmental causes: Join efforts to clean up parks, plant trees, or raise awareness about environmental issues.

Our team are ready to help you get the most out of your retirement, reach out for help and advice here.

i https://www.apia.com.au/apia-good-life/community-relationships/value-of-volunteering.html

ii https://pmc.ncbi.nlm.nih.gov/articles/PMC7375895/

The post Volunteering in retirement: finding purpose, structure, and joy appeared first on Direct Advisers.

When you start to plan for retirement, you’ll need to check your super:

• where it is
• how much you have
• whether you have lost or unclaimed super
• consider consolidating accounts where relevant
• that your details are up-to-date with the ATO and your super funds.

You can do this in 5 simple steps with the ATO’s super health check. For most people it only takes a few minutes.

It’s important to know your total super balance and contributions caps, especially if you plan to contribute to your super. When you check your total super balance, take a note of your concessional and non-concessional contributions. These will indicate if you can make extra contributions or are approaching your limit.

Estimate how much income you will need to retire

The Australian Securities and Investment Commission’s (ASIC) Moneysmart website has information and tools to help you prepare to retire. You can use their:

• Super and pension age calculator to work out when you can access your super and the age pension
• Budget planner to work out your living costs
• Retirement planner to estimate your income from super and the age pension.

Your superfund may also offer a range of calculators to help you. You can access information to help you understand your finances at a free Financial Information Service (FIS) webinar run by Services Australia. You can book to attend a live webinar or watch recordings on their website.

How can I increase my super?

You can increase your super by making extra contributions. Before deciding whether to contribute extra, remember to consider your total super balance and contribution caps. Exceeding the caps may lead to extra tax.

If you decide to contribute extra to your super, the Moneysmart super contributions optimiser will help you work out which type of contribution will give your super the biggest boost.

The following contribution types may be available as options to increase your super (separate eligibility conditions apply):

• concessional and non-concessional contributions
• carry forward unused contribution cap amounts
• downsizer super contribution for people over 55 who have sold their primary residence
• government co-contributions to match your extra personal contributions (up to $500)
• a low income super tax offset (LISTO) payment (up to $500)
• spouse contributions
• capital gains tax retirement exemption contribution for people under 55 if you are selling a small business.

If you are employed, it’s important to remember that your employer’s contributions will count towards your concessional contributions cap.

You may have more than one super account. Consider consolidating your super which means combining super into one account to help save on fees.

Visit ASIC’s Moneysmart to learn more about how to grow your super.

You can also talk to us about the investment options available to help you grow your super.

Considering an SMSF to grow your super?

If you’re thinking about a self-managed super fund (SMSF) to grow your super, visit Moneysmart to learn more about what is required and to understand if an SMSF is right for you.

Accessing your super to retire

When you reach your preservation age and retire, you can access your super to fund your retirement.

You can also access your super:

• when you turn 65 years old
• if you are aged 60 to 64 years of age, under the transition to retirement rules, while you continue to work.

For more information, see Accessing your super to retire.

You can access your super as a lump sum, income stream or a combination of both. Visit Moneysmart to learn more about your retirement income.

After you retire, you may decide to return to work, and you may be able to contribute to your super again. However, it’s essential to consider how this might affect your income, including Australian Government payments (such as the age pension) and your superannuation.

You can discuss your options:

• by using the Financial Information Service – Services Australia
• with your super fund
• by contacting us to understand any potential impacts.

Each fund has governing rules. It’s essential that you talk to your super fund, or talk to us about how you can access your super in retirement and what options are available to you. If you’re a member of an SMSF, understand how you can be paid your benefits.

Tax on super benefits

The tax on super benefits depends on factors like your age, payment amount, and whether your super is taxed or untaxed. If you are 60 years old or older, your super payments may be tax free. For personalised advice, speak to us.

If you’re considering an income stream, check your transfer balance cap (TBC). Exceeding your TBC may lead to extra tax. TBC also applies to a death benefit income stream.

For more information, see Tax on super benefits.

After you retire, even if you don’t need to lodge a tax return it’s important that:

• your contact details with the ATO and your super funds are kept up-to-date
• you regularly review your super on ATO Online
• you check to see if you have any lost or unclaimed super.

Consider seeking professional advice

This information is not financial advice. We can help you make informed decisions about your super and retirement options. Reach out to our experience Retirement Advice team here.

Source: ato.gov.au September 2024
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/super-and-planning-for-retirement
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The post Super and planning for retirement appeared first on Direct Advisers.