What is the CARE investment philosophy's 4-year pause button?

The CARE investment philosophy structures your retirement portfolio so that approximately four years of income is held in conservative, stable assets. If markets experience a significant downturn, you continue drawing income from these conservative reserves without needing to sell growth investments at a loss. This protects against sequencing risk, which is the danger of a major market decline in the early years of retirement. Once markets recover, you replenish the conservative income buffer from growth assets that have rebounded.

What is a Commonwealth Seniors Health Card and do I qualify?

The Commonwealth Seniors Health Card (CSHC) is a concession card for self-funded retirees who have reached Age Pension age (67) but do not receive the Age Pension. It provides cheaper prescription medicines, potential bulk-billed GP visits, higher Medicare Safety Net refunds, and state-based discounts. To qualify, your adjusted taxable income must be below $101,105 for a single person or $161,768 for a couple (from 20 September 2025). There is no assets test.

Retire in Style – Retirement Income Planning and Financial Advice in Newcastle

Q: How do deeming rates affect my Centrelink payments?

Deeming is a method Centrelink uses to estimate the income your financial assets generate, regardless of what they actually earn. From 20 March 2026, the lower deeming rate is 1.25%, applied to the first $64,200 of financial assets for singles or $106,200 for couples. The upper deeming rate is 3.25% on amounts above these thresholds. Deeming affects your Age Pension payment through the income test and also applies to Commonwealth Seniors Health Card assessments.

Q: Should I get financial advice once I am already retired?

Yes. Retirement is not a set-and-forget stage. Ongoing financial advice helps optimise pension drawdowns for sustainability, review investment mix as risk tolerance evolves, maximise Centrelink entitlements after each indexation change, plan for potential aged care costs, and ensure estate planning remains up to date. At Insight Wealth Planning in Newcastle, the Pathway to Wealth methodology includes regular reviews to keep your retirement plan on track.

You have worked hard your whole life to get here. Now it is time to enjoy the retirement you have earned, with the confidence that your money will last and your lifestyle is secure.

How do I make my retirement savings last 25 or more years? What happens if markets crash in my first years of retirement? Am I getting all the Centrelink entitlements I deserve? What is the most tax-effective way to draw my income?

At Insight Wealth Planning in Newcastle, we specialise in helping retirees turn their hard-earned savings into reliable, tax-efficient income that lasts. Retirement is not a set-and-forget stage of life. It is the beginning of a new chapter that deserves ongoing attention, considered adjustments, and expert guidance as your circumstances evolve.

Our Pathway to Wealth™ methodology, developed by Rob McGregor (2009 AFR Smart Investor Blue Ribbon Award finalist), provides a structured, proven approach to managing your money through every year of retirement, from your first day of freedom through to estate planning and aged care.

Making Your Money Last a Lifetime

The transition from earning a salary to drawing on your savings is one of the most significant financial shifts you will ever experience. After decades of building wealth, you are now in the decumulation phase, where the focus shifts from growing your portfolio to drawing a sustainable income from it while ensuring it lasts as long as you do.

We love working with retirees over the long term, making the small, considered adjustments to your plan needed throughout the years to bring you stability and conservative investment guidance to achieve the long-term result you are banking on. This is how we help build longevity into your money and help you to rest easy and live a life you love.

We aim to maximise any tax-free transfer of your assets to your beneficiaries, and to ensure that you benefit from every entitlement available to you, including the Age Pension, Commonwealth Seniors Health Card (CSHC), and Rent Assistance strategies that suit your situation.

Meet a client who is now enjoying the lifestyle of their well-earned retirement.

Want to know more?

Click through to find out some answers to some of our Frequently asked Questions, or contact us today for a non-obligatory discussion about your situation and how we could help.

FAQ’s

Costs

Contact Us

The CARE Investment Philosophy and the 4-Year Pause Button

The single biggest risk for retirees is a significant market downturn occurring in the early years of retirement. This is known as sequencing risk, and it can permanently reduce the income your portfolio generates over your lifetime. If you are forced to sell quality growth assets at reduced prices to fund your living expenses during a downturn, those assets are no longer there to recover when markets bounce back.

Our CARE investment philosophy addresses this directly through what we call the “4-year pause button.” We structure your retirement portfolio so that approximately four years of income is held in conservative, stable assets. If markets experience a significant downturn, you continue drawing income from these conservative reserves while your growth assets have time to recover.

This approach means you never need to sell good quality investments at the worst possible time. You wait for markets to stabilise, then replenish your income buffer from growth assets that have had time to rebound. It is a disciplined, rational approach to retirement investing that takes the emotion out of market volatility.

Equally important is the behavioural coaching our advisers provide. When headlines are alarming and markets are falling, it is human nature to want to react. We help you “stick with” your rational, long-term decisions and see past the short-term ups and downs. This support to hold your nerve during volatile periods is one of the most valuable things a financial adviser can offer a retiree.

Retirement Income Strategies We Implement

Account-Based Pension Management

An account-based pension (sometimes called an allocated pension) is the primary income vehicle for most retirees. You transfer your superannuation into a retirement phase account (up to the $2 million transfer balance cap from 1 July 2025) and draw a regular income from it. Earnings within the pension account are tax-free, and all withdrawals after age 60 are also tax-free.

Each financial year, you must withdraw at least the minimum drawdown amount set by the government, based on your age at 1 July:

Under 65: 4%
65–74: 5%
75–79: 6%
80–84: 7%
85–89: 9%
90–94: 11%
95+: 14%

There is no maximum withdrawal limit on account-based pensions (unlike transition to retirement pensions, which are capped at 10%). Getting your drawdown strategy right is critical: draw too much and you risk running out of money; draw too little and you may not enjoy the lifestyle you have earned. We model different scenarios to find the sustainable income level that gives you confidence and flexibility.

Age Pension and Centrelink Optimisation

The Age Pension is available from age 67, subject to income and assets tests. From 20 March 2026, the maximum fortnightly rates are:

Single: $1,200.90 per fortnight (approximately $31,223 per year)
Couple combined: $1,810.40 per fortnight (approximately $47,070 per year)

Even if you do not expect to qualify for the full Age Pension, understanding how Centrelink assesses your finances is essential. The way you structure your assets and income can significantly affect your entitlements, including part-pension eligibility, Rent Assistance, and the Pensioner Concession Card.

Deeming rates are used by Centrelink to estimate the income your financial investments generate, regardless of what they actually earn. From 20 March 2026, the lower deeming rate is 1.25% (applied to the first $64,200 for singles or $106,200 for couples), and the upper rate is 3.25% on amounts above these thresholds. We help you understand how deeming interacts with your actual income and how to position your finances to maximise your Centrelink entitlements without compromising your investment strategy or lifestyle.

Commonwealth Seniors Health Card (CSHC)

If you are a self-funded retiree who does not qualify for the Age Pension, you may still be eligible for the Commonwealth Seniors Health Card. This is one of the most valuable entitlements available to retirees, providing access to cheaper prescription medicines under the PBS, potential bulk-billed GP visits, a higher Medicare Safety Net refund, and state-based discounts on electricity, gas, water rates, and public transport.

To qualify, you must be at least 67 and your adjusted taxable income must be below $101,105 for a single person or $161,768 for a couple (from 20 September 2025). Importantly, there is no assets test for the CSHC, meaning retirees with significant superannuation balances may still qualify if their assessable income stays below the threshold. We help you structure your income and drawdown strategy so that you maximise your chances of qualifying for this card, which can save thousands of dollars each year.

Tax-Free Retirement Income Structuring

One of the great advantages of the Australian superannuation system is that pension income is tax-free from age 60. However, maximising this benefit requires careful structuring. We help you optimise the tax-free and taxable components within your superannuation, so that you draw income in the most tax-effective way possible.

We also work with you on estate planning strategies to maximise the tax-free transfer of your assets to your beneficiaries. This includes reviewing your superannuation death benefit nominations (binding versus non-binding), ensuring your estate planning documents are aligned with your overall plan, and coordinating with your solicitor to ensure your will, powers of attorney, and super nominations work together seamlessly.

Planning for Aged Care

Many retirees will eventually need to consider aged care, either for themselves or for a partner. The financial complexity of aged care, including Refundable Accommodation Deposits (RADs), Daily Accommodation Fees (DAFs), means-tested care fees, and Aged Care Assessment Team (ACAT) processes, can be overwhelming without expert guidance.

We help you understand how aged care costs interact with your broader retirement income plan and Centrelink entitlements. Our dedicated Investing in Aged Care Decisions service provides comprehensive support for families navigating this complex area.

Self-Managed Super Funds in Retirement

For retirees with a self-managed super fund (SMSF), the transition to retirement phase brings additional compliance requirements. You must ensure minimum drawdown requirements are met each financial year to maintain the tax-exempt status of your pension. Failure to meet the minimum can result in your pension being treated as having stopped for the entire year, with significant tax consequences.

We help SMSF trustees manage the retirement phase with confidence, including actuarial certificate requirements, the choice between segregated and proportionate methods for calculating exempt pension income, and ensuring your investment strategy and trust deed remain compliant and up to date.

It Is Not Just About the Money

A fulfilling retirement is about more than financial security. It is about purpose, connection, health, and happiness. That is why we created our Happiness in Retirement resource, to help our clients think beyond the numbers and build a retirement that is truly rewarding. When your finances are in order, you are free to focus on what matters most to you.

Retire in Style is the fourth and culminating stage of our Pathway to Wealth™ lifecycle journey. Whether you have worked with us through the Foundations, Wealth Builder, and Pre-Retiree stages, or you are coming to us for the first time in retirement, we will meet you where you are and help you make the most of what you have built.

Meet our team of experienced advisers who help retirees across Newcastle and the Hunter Valley enjoy the retirement they have earned.

Frequently Asked Questions About Retirement Financial Planning

The government sets minimum drawdown rates based on your age at 1 July each year. For FY2025-26, the rates are: under 65 is 4%, ages 65 to 74 is 5%, ages 75 to 79 is 6%, ages 80 to 84 is 7%, ages 85 to 89 is 9%, ages 90 to 94 is 11%, and age 95 and over is 14%. These percentages are applied to your pension account balance as at 1 July. There is no maximum withdrawal limit on account-based pensions, so you can draw as much as you need (up to your total balance). If your pension started partway through the financial year, the minimum is calculated on a pro-rata basis. All withdrawals from a super pension after age 60 are tax-free. The transfer balance cap, which is the maximum you can transfer into a tax-free pension account, is $2 million from 1 July 2025.

The Age Pension is a government income support payment available to Australians who have reached age 67 and meet the residency, income, and assets tests. From 20 March 2026, the maximum full Age Pension rates are $1,200.90 per fortnight for a single person (approximately $31,223 per year) and $1,810.40 per fortnight combined for a couple (approximately $47,070 per year). Your actual payment depends on how much income you earn and how many assets you hold. Even if you have significant superannuation, you may still qualify for a part Age Pension. At Insight Wealth Planning, we help you understand the income and assets tests and structure your finances to maximise your Centrelink entitlements.

The CARE investment philosophy used by Insight Wealth Planning structures your retirement portfolio so that approximately four years of income is held in conservative, stable assets such as cash and fixed interest. If markets experience a significant downturn, you continue drawing income from these conservative reserves without needing to sell your growth investments at a loss. This protects against sequencing risk, which is the danger of a major market decline occurring in the early years of retirement when it can permanently reduce your portfolio’s ability to generate income. Once markets recover, you replenish your conservative income buffer from growth assets that have had time to rebound.

The Commonwealth Seniors Health Card (CSHC) is a concession card for self-funded retirees who have reached Age Pension age (67) but do not receive the Age Pension. It provides access to cheaper prescription medicines under the PBS, potential bulk-billed GP visits, a higher Medicare Safety Net refund, and state-based discounts on electricity, gas, water rates, and public transport. To qualify, your adjusted taxable income must be below $101,105 for a single person or $161,768 for a couple (from 20 September 2025). There is no assets test, so even retirees with significant super balances may qualify. The way you structure your income and pension drawdowns can affect whether you stay under the threshold.

Deeming is a method Centrelink uses to estimate the income your financial assets generate, regardless of what they actually earn. From 20 March 2026, the lower deeming rate is 1.25%, applied to the first $64,200 of financial assets for singles or $106,200 for couples. The upper deeming rate is 3.25%, applied to amounts above these thresholds. If your investments earn more than the deemed rate, the extra income is not counted. If they earn less, the deemed amount still applies. Deeming affects your Age Pension payment through the income test and also applies to Commonwealth Seniors Health Card assessments for account-based pensions started or changed after 1 January 2015. Understanding how deeming works is essential for optimising your Centrelink entitlements.

Yes. Retirement is not a set-and-forget stage. Your financial needs change as you age, and the rules around superannuation, Centrelink, taxation, and aged care change regularly. Ongoing financial advice helps you optimise your pension drawdowns for sustainability, review your investment mix as your risk tolerance evolves, maximise Centrelink entitlements after each indexation change, plan for potential aged care costs, and ensure your estate planning remains up to date. At Insight Wealth Planning in Newcastle, our Pathway to Wealth™ methodology includes regular reviews to ensure your retirement plan stays on track through every stage of your retirement.

Ready to Enjoy the Retirement You Have Earned?

Whether you have just retired or you have been enjoying retirement for years, it is never too late to make sure your plan is working as hard as it can for you. Book a consultation with our team today and let us show you how we can help you make the most of every year of your retirement.