When a client approached us, uncertain about whether to withdraw a lump sum from their superannuation to pay off their home loan or to leave the funds in super and draw a regular pension, we knew this decision would have long-term consequences. They were looking for a clear, confident path forward—one that would balance financial security with peace of mind.

Challenges

The first challenge was helping them identify what a comfortable retirement looked like. Like many Australians, they weren’t sure how much income they would realistically need each year to support the lifestyle they envisioned. Without a clear target retirement income, it was difficult for them to weigh up the options confidently.

Solutions

We worked closely with the client to define their desired retirement income, taking into account living costs, travel plans, and lifestyle goals. With that clarity, we created a series of financial models that compared the outcomes of two key strategies:

• Using a lump sum to pay down their home loan
• Leaving their funds in the pension phase of super and drawing regular income

The modelling considered factors such as investment earnings, tax implications, age pension eligibility, and debt interest savings, giving them a complete picture of the financial trade-offs.

Benefits

The result? Clarity, confidence, and peace of mind. Through the advice process, the client gained a deeper understanding of their financial position and the key factors influencing their retirement decisions. With personalised modelling and expert guidance, they were able to see how different choices could impact their future and make informed decisions with greater certainty. Most importantly, they walked away feeling in control of their financial future, with a retirement strategy aligned to their goals, values, and lifestyle aspirations.