Current as of 17 Feb 2026. Always verify current year rates.
How do I avoid running out of money in retirement?
Short answer:
The aim is to set a spending rule you can live with, then adjust gently as markets and life change. There’s no single ‘safe’ number for everyone, it depends on your balance, other income (including Age Pension), investment risk, and how flexible your spending is. Using a calculator and simple guardrails can make the trade‑offs clearer.
Key takeaways
Worry is normal, a simple rule helps reduce second‑guessing
Test multiple scenarios (good/ok/bad markets), not one forecast
Plan for flexibility: keep essentials steady, vary “nice‑to‑haves”
Review after big market moves and major life changes
Use live tools (like Moneysmart) and keep sources current
Why this matters
If you don’t have a clear spending rule, it’s easy to underspend (and miss out on life) or overspend early. A calm process with checkpoints helps you keep control and keep choices open.
Mini-plan (3-4 steps)
- Write down your must‑pay costs and your optional spending (even rough is fine).
- Use a retirement calculator to test a few drawdown levels and market scenarios.
- Choose a simple guardrail (a floor and a ceiling) so spending can adjust without panic.
- Set a review rhythm (for example annually, and after major market falls or big expenses).
Related questions
Sources (so you can verify)
Disclaimer: Information provided is general in nature and does not constitute personal financial advice. You should consider seeking advice from a licensed financial planner before making any financial decisions.
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