If you’ve found yourself feeling a little more financially cautious lately—you’re not alone. Conversations with clients over the past few months have had a noticeably different tone. It’s not panic. It’s not pessimism. It’s something more grounded:
Caution. Concern. A desire for clarity.
Whether you’re already retired or still transitioning into it, 2025 is proving to be a year where many Australians are quietly asking:
“Am I still on the right track?”
Here are three economic realities I believe every retiree and pre-retiree should be actively thinking about right now—and what we can do about them.
1. Helping Your Kids Without Hurting Your Retirement: The Housing Crunch & Wealth Transfer Dilemma
Housing affordability has reached critical levels. Your kids—and increasingly your grandkids—are struggling to buy into the market, despite working hard and saving diligently. Many parents feel a deep emotional pull to help out, and that’s admirable.
But here’s the uncomfortable truth I often discuss with clients:
The “Bank of Mum and Dad” is now Australia’s 5th largest lender—often unregulated, undocumented, and unplanned.
What I’m seeing:
- Parents offering lump sum gifts for property deposits
- Retirees loaning large amounts without formal agreements
- Some drawing down investments or even super to “help now and worry later”
My advice:
- Always plan intergenerational support within your own retirement strategy—not alongside it, or after it
- Consider legal loan agreements, even with family, to protect everyone’s interests
- Be aware of Centrelink rules—gifting can reduce entitlements if not structured correctly
You can absolutely help your family build a better future—but not at the cost of your own security. The key is planning, not emotion.
2. Global Market Volatility: Should You Be Worried?
The financial world is jittery. Headlines bounce from U.S. inflation to China’s economic slowdown to war-related uncertainty. Even though Australia’s economy is relatively stable, we’re still tied to the global tide.
A lot of clients have asked:
“Should we pull back to cash?”
“Is now a bad time to be invested?”
The truth is, markets have always had ups and downs—but emotional decisions made in times of uncertainty often lead to poor long-term outcomes.
What I encourage my clients to consider:
- Retirees still need their money to grow—even in retirement. Longevity risk (outliving your money) is a real threat.
- A well-designed investment portfolio should already have the right mix of growth and defensive assets based on your life stage
- It’s not about reacting to headlines—it’s about staying aligned with your plan
If volatility is making you nervous, that’s a sign to review and recalibrate—not retreat.
3. The Cost of Living Is Eroding Retirement Confidence—But There Are Ways to Respond
Even as inflation cools, many Australians still feel like they’re going backwards. A loaf of bread, a tank of fuel, private health, travel insurance—it all costs more than it did a year ago. Add to that the RBA’s decision to keep interest rates higher for longer, and suddenly cash flow feels tighter.
What I’m seeing among clients:
- Retirees are worried about how long their cash will last—especially with more funds sitting in bank accounts earning below-market returns
- Pre-retirees are unsure whether they can afford to reduce work hours as originally planned
- More are being asked by their adult children for financial support—adding pressure
What we’re doing about it:
- Reviewing income sustainability and portfolio withdrawal rates
- Looking at better income options—such as term deposits, annuities, or income-focused portfolios
- Modelling different retirement age scenarios, so you can make decisions from a position of knowledge, not guesswork
The cost of living may be outside our control—but how we plan around it is not.
There’s no shortage of uncertainty right now. But the truth is, there never really is. What matters most is that you’re not navigating it alone.
The Whitehead Financial Team
