How much of my super should I save, spend or keep invested in retirement?
Opinion
By Brad Zaknich
Industry research1 shows that many retirees are not living the life they want, as they are heavily focused on ensuring their money doesn’t run out.
As such, they often invest in “low risk” options and try to spend as little of their super as possible.
However, this isn’t the only option you have in retirement. In fact, an overly conservative approach could mean your super won’t yield the income and lifestyle you envisioned.
Whether you’ve just entered retirement or are rethinking your retirement income strategy, here are some important considerations to keep in mind.
Your super is designed to be spent for your retirement
For many Australians, using their superannuation to help their kids or family out after their passing is an attractive opportunity.
It is your money. You can do with it what you want.
However, the primary purpose of super is to support you during your retirement years. That’s why the Australian Government provides tax incentives through super to save for your retirement.
It’s also why there are often additional taxes levied on our super if it’s left to others after we pass away.
So, while your goal may be to leave behind a sizeable inheritance, setting aside your super might not be the best way to do so.
‘Low risk’ doesn’t mean no risk
I know that everyone's goals and situation are different. The right investment strategy for you should always be based on how much risk you’re comfortable with.
At the same time, I also know that fear of the unknown and concern about market ups and downs can be a significant driver in our retirement decisions.
As a result, you might exclusively invest in low-risk options like cash to avoid exposing your super to too much investment volatility.
The trade-off, however, is that going too conservative could cement your chances of not having enough.
While your balance may be more stable, there's still a chance your savings could run out later in life if they don't keep pace with the cost of living.
If the market falls, what then?
While higher investment returns are always attractive, they generally also come with higher risk. So what happens if the market falls and I need to draw money out of my super?
This is where diversification comes in handy. Putting your money in a mix of asset classes could mean that if one investment performs poorly, others may help reduce the overall impact on your savings.
The key is to strike the right balance so your savings are protected, while your super continues growing at a rate that can support your lifestyle and future needs.
If you have an RI Allocated Pension, you’ll also have the flexibility to choose where your pension payments are made from.
For example, if your investments in Shares aren’t performing as well, you can opt for your next pension payment to be drawn from funds that are invested in Cash instead.
Not sure how long your super will last in retirement?
Having enough super is not just about the amount you have when you retire.
You also need to factor in how long you will need that money for, and how much you’ll need per year.
It’s just maths. But just like in maths, there are many variables to consider for your retirement. And the greatest variable of all is to what age will you live (but really, do you want to know?)
To figure out if you’ll have enough, try our Retirement income calculator. It can show how much money you could spend in retirement and test how budget or lifestyle changes could affect your income.
Don’t forget, it’s your money to do with as you choose. But ask yourself: will I live the retirement I want if I focus more on protecting what I’ve already saved, or on generating income throughout retirement?
Brad Zaknich
Relationship Manager
As an experienced presenter, Brad can communicate the complexities of our schemes in a clear, engaging way for both employers and members.
As Relationship Manager looking after the Department of Education, Brad brings over 30 years of WA public sector experience to the table, including more than 20 years at GESB. With previous roles in HR and payroll, Brad has extensive government experience and a great understanding of the issues different agencies can face.
More information
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Thank you for printing this page. Remember to come back to gesb.wa.gov.au for the latest information as our content is updated regularly. This information is correct as at 26 October 2026.