One of the most important questions any of us must decide on as we prepare for retirement is, "How much can I withdraw from my retirement savings account without depleting my balance and running the risk of running out of money?"

Standard planning practice estimates that post-retirement income needs are generally between 80–105% of pre-retirement income; yet pre-retirees often underestimate this level of income.

The impact of underestimating long-term needs may not be felt for many years after retirement, Usually the brunt of the impact is felt in a retiree’s later years - at the point when resources are depleted and investment options are more limited.

Travel, indulging grandchildren and maintaining lifestyles can be more expensive than most retirees think.

Adjusting spending habits based on market conditions by spending more during good markets and less during poor markets can help extend the lifespan of savings—as can lowering annual spending levels in retirement.

Whether you're already retired or in the final stages of preparing to retire, understanding how much income your accumulated investment assets can generate is critical to your long-term planning.

A safe withdrawal rate is one that allows you to create a portfolio that will protect you against market volatility and also provide you with resilient, sustainable inflation-proof retirement income.

For many, that rate is 5%.

For others, who will be willing to take more risk, their safe withdrawal rate may be higher.

Regardless of the rate you choose, remember the best withdrawal rate is the one that allows you to sleep well at night.

How can we help?

Our sustainable retirement income strategy consists of three important components:

1. An optimised level of retirement income,

2. The inclusion of capital reserves (for additional income) during the second phase of your retirement, and

3. An investment portfolio that is designed to provide you with sustainable and increasing long term income.

We maximise your Age Pension entitlements and take into account the potential implications of your progressive longevity when determining your ideal income level(s).

Our sustainable retirement income strategy includes the regular re-setting of your income base and the automatic re-balancing of your portfolio.

The real benefit to you will be that you will receive more retirement income, for longer.