How to Plan for Retirement With Confidence

Retirement should be a time to enjoy the life you’ve worked hard to build, not a time of financial stress or uncertainty. Yet for many Australians, the idea of stepping away from a regular income can feel overwhelming. How much will you need? How long will it last? Are you making the most of tax advantages like superannuation and franking credits?

At Annex Wealth, we help individuals and families plan for retirement with clarity and confidence. Whether you’re approaching retirement or thinking ahead, this guide will walk you through key considerations, from super strategies to pension structures, and how to ensure your money continues working for you after you’ve stopped working.

Why Retirement Planning Matters Now More Than Ever

Australians are living longer, which means many of us may spend two or three decades in retirement. Without a plan in place, it’s easy to underestimate how much money you’ll need or overlook opportunities to maximise income.

A solid retirement plan brings together your superannuation, investments, government entitlements and tax strategy in a way that supports your long-term goals. Structuring your income sources efficiently can help reduce tax, unlock valuable government incentives and provide a more stable income in retirement.

Superannuation: Still the Cornerstone of Retirement Planning

Superannuation remains one of the most effective ways to save for retirement in Australia. While you’re still working, concessional and non-concessional contributions grow your balance in a tax-advantaged environment. But the real strength of super is seen after you retire, particularly when your fund moves into the pension phase.

At this point, investment earnings within your super fund become tax-free. That’s where franking credits can significantly boost your income. Australian companies often attach franking credits to dividends. When your super is in the pension phase, the fund can claim these franking credits as a tax refund. In practice, this means fully franked dividends can deliver even greater income, making them a compelling option for retirees holding Australian shares within their super.

Account-Based Pensions and Income Streams

Once you reach preservation age and retire, you can start drawing an income from your super through an account-based pension. These pension accounts are flexible, allowing you to choose how much income to draw above the minimum withdrawal requirements.

The major advantage is that earnings on the investments in your pension account are generally tax-free, and if you’re over 60, your pension income is too. This, combined with the benefit of refundable franking credits, creates a highly efficient income stream.

To ensure your funds last throughout retirement, it’s important to manage withdrawal rates carefully, keep your investments diversified, and remain responsive to changing market conditions and personal needs.

Investing in Retirement: Balancing Growth and Stability

It’s natural to want to reduce investment risk in retirement, but being too conservative can be just as risky. With inflation and increased life expectancy, many retirees need their portfolios to keep growing while still providing regular income.

A balanced retirement strategy might include a mix of Australian shares, international equities, fixed income, and cash reserves. Australian shares, in particular, can deliver strong income through franked dividends. When held in a pension-phase super account, these dividends can be especially valuable due to the refund of franking credits.

This approach offers both income and growth potential, helping you maintain your lifestyle while protecting your future.

Avoiding Common Retirement Planning Mistakes

Some of the most common mistakes in retirement planning include starting too late, withdrawing too much too soon, and failing to take full advantage of available tax benefits.

For example, some retirees don’t realise the full value of franking credits within pension-phase super. Others may not adjust their investment strategy as their needs evolve, leading to either excessive risk or missed growth opportunities.

It’s also important to regularly review your plan to ensure it reflects any changes in your financial position, lifestyle or retirement goals.

Get The Most Out of Your Retirement

Retirement planning is about more than just saving money. It’s about using what you’ve built in a way that supports your lifestyle, protects your future, and makes the most of every financial advantage available. With thoughtful planning and the right advice, you can turn your super and pension into a powerful engine for tax-effective income.

At Annex Wealth, we work with clients to help them make the most of their super and pension options, structure investments to generate reliable income, and take advantage of tax efficiencies like franking credits. We also look at the bigger picture, incorporating estate planning, aged care needs, and intergenerational wealth strategies.

Our goal is to give you confidence in your financial future, so you can enjoy retirement the way you’ve always imagined. Whether you’re five years away from retirement or already in it, the sooner you take control, the more confident your future will feel.

Get in touch with us today to start building a retirement plan that works for your life, your goals, and your peace of mind.