Retirement isn’t just about having enough money. It’s about knowing how to spend it with confidence.
However, for many Australians it’s easier said than done.
This is where financial advisers make a meaningful difference - not just to financial outcomes, but to wellbeing, relationships and lifelong confidence. And in doing so, advisers are deepening engagement, strengthening loyalty, and building the kind of trust that naturally drives referrals and practice growth.
The Government's Retirement Income Review in 2020 reported findings that a typical retiree can leave 90% of their starting superannuation balance unspent at death, funding inadvertently large bequests.
That deep-rooted fear of running out of money (FORO) during retirement is stopping people from living life to the fullest.
While the fear isn’t unwarranted, it could have the potential to be detrimental to someone’s life.
Image having a 100,000-litre water tank next to your house, but you install the tap at the top of the tank instead of at the bottom. In this manner, you’d be restricted to only access the overflow each year – the new rainwater that falls, without ever accessing the large volume of water you already have which could see you comfortably through extended periods of drought.
You could be thinking: then what was the point? Which is exactly what I am trying to highlight, what is the point of accumulating enough wealth to live comfortably during retirement and then being so scared to spend it that you find yourself missing out on amazing memories and moments.
That’s why we need to start shifting retiree’s mentality from FORO and replace it with a healthy fear of missing out (FOMO).
The result will be retirees enjoying a higher standard of living, being more confident to support their loved ones and communities, and the superannuation system finally achieving its intended and legislated purpose of delivering income for a dignified retirement.
But how to turn that fear into confidence?
Some suggestions include:
- The 10-30-60 role
- Lifetime income solutions
- Helping clients find a purpose
The 10-30-60 rule
The 10-30-60 rule, developed in 1989 by Don Ezra at Russell Investments suggests that around 10% of retirement income comes from contributions made during your working life.
Around 30% comes from investment earnings accumulated during the same time.
And around 60% of the income during a typical retirement journey comes from investments earnings generated during retirement.
Of course, 10-30-60 is less of a hard rule and more of a rule of thumb. The precise percentages will vary depending on market returns, inflation, retirement age, spending patterns, and countless other factors. Its value lies not in mathematical precision but in the powerful principle it illustrates: Retirement is not the end of investing.
However, it’s important to highlight that this rule may only be possible if retirees invest through retirement, not just to retirement.
The rule should be a reminder that retirement planning should focus not only on the assets accumulated before retirement, but also on the earning potential of those assets afterwards.
Retirement savings are not supposed to stop working when you do, and by showing clients that their wealth is still growing while spending will boost the confidence they need to spend comfortably.
Make more possible with lifetime income
Innovative retirement income streams (IRIS) can play a crucial role in providing income for life, which could provide the reassurance a retiree needs to overcome FORO, giving them greater permission to enjoy what they’ve worked for.
It helps alleviate financial concerns but also allows advisers to potentially deliver stronger outcomes to clients by offering an income stream for life with better Age Pension entitlements and layered income sources.
The key benefit of market linked lifetime income streams is ongoing exposure to growth assets – allowing people to invest through, not to – retirement, while still enjoying income for life.
Relying solely on an account-based pension (ABP) may leave retirees exposed. Layering a lifetime income product with flexible access to capital should give clients the confidence they need.
Many are now adopting new retirement income streams, like our MyNorth Lifetime accounts, which not only provide income for life but also deliver flexibility, concessional means testing for the Age Pension, and the ability to start planning earlier to help make spending during retirement easier.
These solutions are already making a real difference for clients who might otherwise be too anxious to enjoy their retirement, with the average MyNorth Lifetime member spending about 60% more than other MyNorth members. *
The more advisers equipped with the latest tools and knowledge, the more Australians will have the confidence to spend, enjoy, and live the retirement they deserve.
Help clients find purpose
When people enter retirement, many face an unexpected identity shift. Who are they now? How do they spend their time?
Part of overcoming FORO is by reminding clients the potential to focus on what really matters to them whether that be volunteering, mentoring, travelling, discovering a new hobby or spending more time with family.
Here, a solid retirement plan where people feel secure is key to shifting people from FORO and starting to live more.
The role advisers often play is not just as educators but also coaches. You’re a healer that can boost confidence in how much money clients have and that it will last them through a lifetime with a solid retirement plan.
After all, a good retirement plan should protect against running out, but also against missing out.
The 60% average in retirement income is based on analysis done in May 2025 by NMMT Limited ABN 42 058 835 573, AFSL 234653 (NMMT). Our observed retirement income of 250 members holding MyNorth Lifetime accounts against observed retirement income of MyNorth Allocated Pension members who didn’t hold a MyNorth Lifetime account. We looked at retirement income that members received from MyNorth Lifetime, MyNorth Allocated Pension, and our estimate of members’ eligible Centrelink entitlements with and without MyNorth Lifetime. Actual outcomes may vary due to a variety of factors. All Centrelink and tax information is based on NMMT’s understanding of the applicable legislation and is subject to change.
Issued by NMMT Limited ABN 42 058 835 573, AFSL 234653 (NMMT). North is a registered trademark of NMMT.
