Retirement with Confidence: How David and Melissa Built a Strategy for Lifestyle, Longevity & Legacy

At Wealth Effect Group, we believe retirement planning should begin with clarity — not just about numbers, but about purpose. When David and Melissa first came to us, they had a strong financial foundation but wanted help turning that into a retirement strategy that would support their lifestyle, protect their longevity, and leave a meaningful legacy for their children.

Starting with Their Priorities

David and Melissa’s initial goals were clear:

• Maintain a lifestyle income of $150,000 per year to enjoy travel, dining, and family time.

• Retire at age 65, with Melissa continuing to work for two more years.

• Keep their family home to host grandchildren and preserve emotional connection.

• Minimise tax on inherited superannuation for their adult children.

• Ensure their savings last well beyond life expectancy, without compromising quality of life.

• Explore ways to use home equity later in retirement, if needed.

These priorities formed the basis of our advice and shaped every recommendation we made.

Understanding Their Financial Position

Melissa, aged 60, earns $90,000 annually and holds $850,000 in super. David, 62, earns $200,000 and has accumulated $950,000 in super. They’ve focused on maximising contributions, particularly boosting Melissa’s balance to equalise their retirement positions. Their mortgage is on track to be repaid by the time David retires, and they have no investment assets outside super — a deliberate strategy to maximise tax efficiency.

They expect to declare $80,000 in personal assets when applying for the Age Pension, reflecting high-quality vehicles and household contents.

Modelling Their Retirement Income

To help David and Melissa visualise their retirement trajectory, we used a sophisticated retirement projection tool to model their super balances under a standard account-based pension strategy. The results showed their savings would last until age 85 — ten years short of their life expectancy.

This was a pivotal moment. It highlighted the need to adjust their income expectations and explore more sustainable strategies.

Refining the Income Strategy

We guided David and Melissa through a revised income plan:

• $140,000 annually in early retirement, tapering to

• $100,000 from age 80, when travel and discretionary spending would naturally decline.

This adjustment extended the longevity of their super to age 94. The Age Pension begins contributing from age 79, as their asset base gradually declines, enhancing their income sustainability.

Introducing Lifetime Income Streams

To further strengthen their retirement resilience, we introduced lifetime income products. By allocating a quarter of their super to a product linked to balanced investment returns and offering spousal reversion, they secured income for life — regardless of market performance or lifespan.

This strategy not only improved their income stability but also accelerated Age Pension eligibility. Due to favourable Centrelink treatment, only 60% of the product’s value is assessed initially, reducing to 30% at age 84. As a result, David qualifies for the pension at age 76 — three years earlier than under the account-based pension model.

Managing Market Risk

Unlike traditional pensions, lifetime income products adjust payments based on investment performance. This means income may dip after poor returns but recover in stronger years — preserving capital and avoiding the need to sell assets at a loss. The provider guarantees income for life, removing the burden of market timing from David and Melissa’s shoulders.

Planning for Legacy: Eliminating the Super Death Tax

David and Melissa were also concerned about the superannuation death tax that could apply if their children inherited taxable components from their super. To address this, we recommended a recontribution strategy — a structured approach to convert taxable super into tax-free components, reducing or eliminating tax payable by beneficiaries.

Here’s how we helped them plan it out:

• At age 65 (David) and 63 (Melissa): In the first financial year after retirement, they would each withdraw and recontribute the annual non-concessional cap of $110,000 into a new super account designed to hold only tax-free components.

• At age 66 and 64: In the second financial year, they would use the bring-forward rule to recontribute $330,000 each (3 × $110,000), allowing them to make four years’ worth of contributions in just two years.

• At age 69 and 67: In the fifth financial year post-retirement, they would repeat the bring-forward strategy, contributing another $330,000 each to further reduce the taxable portion of their super.

• At age 72 and 70: If any taxable components remain, they would consider a final recontribution in the eighth year after retirement.

By structuring their contributions this way, David and Melissa can ensure that their superannuation is composed entirely of tax-free components by the time they reach their mid-70s. This means that if they pass away with super balances still intact, their adult children will inherit those funds free of tax.

We also helped them set up separate super accounts to manage this strategy more effectively — one holding taxable components for future withdrawals, and another dedicated to receiving recontributions and building up the tax-free portion.

Using Home Equity in Later Retirement

David and Melissa are open to leveraging their home equity later in retirement. We explored two key strategies with them:

1. Downsizer Contributions

If they sell their home after 10 years of ownership, they can contribute up to $300,000 each to super — without impacting contribution caps or age limits. This provides a powerful boost to retirement savings even beyond age 75.

2. Home Equity Access Scheme

This Centrelink-backed reverse mortgage offers fortnightly payments up to 1.5 times the full Age Pension rate. With a low interest rate of 3.95% and a no negative equity guarantee, it’s a secure way to supplement income without risking estate value.

A Confident Retirement Blueprint

David and Melissa’s retirement plan is now robust and multifaceted. It includes:

• A revised income strategy aligned with lifestyle phases

• Lifetime income streams to protect against longevity and market risk

• A recontribution strategy to eliminate super death tax

• Flexible options to access home equity if needed

At Wealth Effect Group, we believe retirement should be lived with confidence, not compromise. David and Melissa’s journey illustrates how thoughtful planning, strategic product selection, and expert guidance can transform retirement from uncertain to empowered.

Ready to Take the First Step?

If you can relate to David and Melissa’s story — whether you're approaching retirement or simply want to ensure you're on the right path — we invite you to book a complimentary Retirement Strategy Session with one of our senior advisers.

Start with a 15-minute introductory call to see how we can help you clarify your goals, identify opportunities, and build a confident retirement plan tailored to your life.

👉 Book your Retirement Strategy Session here[1]

Let’s explore what’s possible — together.