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More Australians Are Planning to Self-Fund Their Retirement in Penrith
For many Australians, the traditional retirement model involved relying heavily on the Age Pension. But as superannuation balances grow and financial awareness increases, more people are choosing — or needing — to self-fund their retirement in Penrith.
So, what exactly does that mean? And how do you ensure your self-funded retirement is sustainable, tax-effective, and tailored to your lifestyle?
At MLS Financial in Penrith, we specialise in retirement planning and help clients across all life stages prepare for a comfortable, self-funded future. Let’s break down what’s involved.
What Is a Self-Funded Retirement?
A self-funded retiree is someone who meets their retirement income needs without relying on the Age Pension. Instead, they draw income from:
- Superannuation (via account-based pensions, lump sums, or annuities)
- Investments (shares, ETFs, managed funds, property)
- Personal savings or cash reserves
- Other income streams, such as part-time work or business income
Some retirees may not meet Centrelink’s asset or income test for Age Pension eligibility, while others may choose to remain independent of government support.
The Benefits of Self-Funded Retirement
✅ Greater flexibility – You’re not restricted by Centrelink thresholds or reporting obligations
✅ More control – You can tailor your investment and withdrawal strategy to your needs
✅ Better lifestyle options – Higher levels of income can support a more comfortable lifestyle
✅ Eligibility for other benefits – Some self-funded retirees may still qualify for the Commonwealth Seniors Health Card (CSHC), offering access to pharmaceutical and medical concessions
Key Components of a Self-Funded Retirement Plan
At MLS Financial in Penrith, we help clients build self-funded retirement strategies that balance income, growth, and security. Here’s what we consider:
1. Superannuation Strategy
Super is often the foundation of retirement wealth. We help you:
- Transition to an account-based pension for regular tax-free income
- Decide between lump sum withdrawals and ongoing payments
- Ensure your investment mix suits your stage of retirement
2. Investment Income Outside Super
Diversifying outside of super provides additional income and flexibility. Common sources include:
- Dividends from shares or managed funds
- Rental income from investment properties
- Interest from term deposits or bonds
We guide you on how to structure these for tax efficiency and consistent cash flow.
3. Cash Flow Planning
One of the most important aspects of self-funded retirement is managing your cash flow to ensure your money lasts. This includes:
- Creating a sustainable withdrawal strategy
- Planning for big-ticket expenses (holidays, car upgrades, medical costs)
- Maintaining a cash buffer for emergencies
4. Longevity and Inflation Planning
With Australians living longer, your retirement could last 25–30+ years. We factor in:
- Longevity risk (outliving your savings)
- Inflation reducing your purchasing power over time
- The need to adjust your income strategy as you age
5. Centrelink Considerations
Just because you’re self-funded now doesn’t mean you won’t ever be eligible for Centrelink support. We help you:
- Monitor changes in income and assets that may impact eligibility
- Apply for concessions like the CSHC
Strategically structure your finances in case your situation changes
Key Components of a Self-Funded Retirement Plan
Self-funded retirement can offer independence, flexibility, and a more personalised lifestyle — but it comes with greater responsibility and planning requirements.
Whether you’re approaching retirement or already there, a Penrith based MLS financial planner can help you:
- Maximise your income from super and investments
- Minimise tax
- Plan for the unexpected
- Ensure your money lasts as long as you need it
Speak With a Retirement Planner in Penrith
At MLS Financial, we’ve been helping clients across Penrith and Western Sydney plan for self-funded retirement for over 20 years. Our approach is personal, professional, and always aligned to your goals.
📞 Call 1300 791 800
📩 Or get in touch online to book a no-obligation chat.
Let’s create a self-funded retirement strategy that works for you — now and for years to come.
Disclaimer:
This information is of a general nature only and has been prepared without taking into account your individual circumstances. You should seek personalised financial advice before making any financial decisions. MLS Financial and Infocus Securities Australia Pty Ltd are authorised representatives and are not responsible for actions taken based on this article.
