Should you be investing in retirement? Why Your Money Can’t Retire When You Do 

Whether you’re approaching retirement or already enjoying a lifestyle of leisure, it is equally important to consider the question: should I be investing in retirement? 

According to the latest statistics, the average Australian retires at age 57 (ABS 2025) and lives to the fine age of 83 (ABS 2025). This means that Australians can expect to have one of the longest retirements of any population in the world (YourLifeChoices 2021).  

To lead a comfortable retirement, the Association of Superannuation Funds of Australia (ASFA) state that an individual needs to have paid off their mortgage and receive an annual income of $54,000; for a couple this figure is closer to $77,000 (ASFA 2025). 

As the Age Pension age is currently 67, and the earliest you can generally access super is 60, there is a 3-year period most retirees will need to fund using personal savings and/or investments outside super. Furthermore, once a retiree reaches age 67 and starts receiving an Age Pension (if eligible) they will still need to continue self-funding approximately 40% of their living expenses. 

How can retirees confidently self-fund 40% of their living expenses each year? 

While cash savings may support retirement between the ages of 57 and 60, very few retirees will have enough saved to sustainably support their living expenses long-term. 

For many of our clients, investing in a mix of growth and defensive assets provides the much-needed growth and income needed to sustain a comfortable retirement.  

Key reasons to invest in growth assets (e.g. shares, property): 

• Higher long-term returns than defensive assets 

• Protection against inflation 

• Capital appreciation 

Key reasons to invest in defensive assets (e.g. bonds, cash): 

• Capital preservation 

• Consistent income 

• Reduced volatility 

• Liquidity 

Great care needs to be taken to select a portfolio of investments that will reliably deliver the results retirees are counting on. 

“Investing intelligently throughout retirement gives retirees the opportunity to experience more of life’s pleasures and the great thing is – it doesn’t have to be complicated”. 

At Coastal Advisory Australia, we have developed an evidence-based investment approach, utilizing Nobel Prize-winning insights, that give our clients consistent outcomes and allows them to pursue higher returns. 

“We want our clients to tune out the noise of financial markets and focus on the meaningful parts of their lives”. 

Some clients like to complement our investment approach with the certainty provided by products designed to deliver retirement income for life, such as Innovative Retirement Income Stream (IRIS) products and annuities. 

Working with one of our highly qualified financial advisers will ensure that your unique circumstances are taken into account and that the most appropriate mix of financial instruments are used to meet your needs. 

Summary 

• Most Australians will need to self-fund part of their retirement 

• Cash savings alone will not afford a comfortable lifestyle for most retirees 

• Investing in a mix of growth and defensive assets throughout retirement provides much-needed growth and income to support living expenses 

• There are financial products that can guarantee retirement income for life 

• Every retirement is different and advice should be sought from a suitably qualified professional, to determine an appropriate investment strategy for your retirement 

Coastal Advisory Australia (No. 1280080) and Josh Parrott (No.1310287) are Corporate Authorised Representatives of RI Advice Group Pty Ltd ABN 23 001 774 125 AFSL 238429. The information (including taxation) contained within this article does not consider your personal circumstances and is of a general nature only – unless otherwise stated. You should not act on it without first obtaining professional advice specific to your circumstances.