Produced By: Ensombl
Retirement planning can be one of the most significant milestones in a person’s financial journey. It involves not only understanding how much one needs to save but also how to spend these funds responsibly, how to navigate taxation and government entitlements, and how to maintain enough flexibility to handle life’s inevitable surprises. In addition, it brings its own emotional and psychological changes that many professionals, especially financial advisors, must be prepared to address.
In a recent podcast series, sponsored by Vanguard, two experienced financial advisors—Tanya Carlson of Amplify Wealth and Suzanne Haddan of BFG Financial Services—discussed the key findings of Vanguard’s “How Australia Retires 2024” research and explored the broader context of professionalism and ethics in retirement advice. Their conversation touched on essential themes including the cost of living, home ownership, assisting adult children, and barriers to accessing professional advice. This article synthesizes their insights into a cohesive discussion about how financial advisors can use best-practice, ethically grounded approaches to help Australians navigate retirement confidently and responsibly.
The “How Australia Retires 2024” report confirms that cost-of-living pressures are at the forefront of retirees’ and pre-retirees’ minds. Retirees who have already built up a solid asset base, including superannuation and property, often manage rising costs better than those who have not. Yet, most still worry about increasing expenses: health care, general living costs, and unforeseen outlays like home repairs or helping adult children are common stressors.
At the same time, the report highlights an interesting split between retirees and working Australians in terms of perceived retirement income needs. While retired Australians recognized a need for a small increase in annual income, working Australians expected a much larger amount. This discrepancy underscores a gap in perception: those not yet retired often assume expenses in retirement will remain high or even escalate, whereas retirees, having real-life experience of day-to-day expenses, perceive that while some costs rise, others (like mortgage repayments, child-related costs, or commuting) may fall away.
From an ethical standpoint, these findings point to the importance of sound, data-driven guidance. A responsible advisor not only uses objective research (such as Vanguard’s report) but also applies personalized modeling for each client’s situation. By explaining inflation risk, housing costs, and healthcare projections, advisors help clients form realistic expectations. This educative approach is fundamental to professional conduct: the better-informed the client, the more responsibly they can act.
One particularly striking data point from Vanguard’s research is that one in five Australians retire without owning their home. Furthermore, a significant proportion of younger generations, including millennials and Gen Z, anticipate carrying a mortgage into retirement—or worse, never entering home ownership at all. This is especially noteworthy given that much of Australia’s retirement system (including the Age Pension) presupposes that retirees own their homes outright.
Despite the challenges, Australia’s high property prices—especially in cities like Sydney—often mean current retirees may hold substantial property wealth. This creates the potential to release equity or downsize later. Yet it also raises practical and ethical questions:
Both Tanya Carlson and Suzanne Haddan emphasized the ethical principle of “fitting your own mask first”—an allusion to airline safety messages urging passengers to secure their own oxygen masks before assisting others. Retirees commonly want to support adult children or grandchildren by gifting or lending sums to help with property deposits or mortgage repayments. However, without thorough modeling, the gift-giver may compromise their own retirement security.
From a professionalism standpoint, advisors serve clients best by providing thorough “what-if” scenarios. For instance, modeling how a lump-sum gift may reduce a retiree’s capital, or discussing the emotional and fiscal benefits of offering monthly support instead of an outright transfer. Ethical advisement ensures that clients understand every financial and emotional implication. It also keeps family relationships intact by setting transparent expectations.
Vanguard’s research found that around one in two Australians worry their funds will not last throughout retirement. Even more concerning, half do not know how much they can safely withdraw each year to keep their savings intact long-term. The professional response is comprehensive modeling to show clients the trajectory of their assets under various scenarios, such as market downturns, unexpected healthcare expenses, or assisting family members.
Regular check-ins—ideally annually, or even more frequently if circumstances change—reinforce these projections, helping clients see if they remain on track. The conversation is not static; as Suzanne pointed out, life does not unfold in a straight line. Redundancies, health challenges, or big decisions (e.g., a move to a new city or a home upgrade) can all alter the retirement timeline and budget. Ethical practice demands readiness to adapt the plan when life shifts course.
Australian superannuation rules are complex, and many retirees need help navigating contributions, rollovers, and pension-phase strategies. Younger clients typically benefit from advice on co-contributions, spouse contributions, and the First Home Super Saver Scheme. Advisors can “stress test” how additional contributions might accelerate a client’s wealth creation or how certain timing for contributions might optimize tax outcomes.
A professional, ethically driven advisor clarifies fees, risk profiles, and possible structural changes (like super-splitting between spouses to balance accounts). Advisors must not only present these details accurately but also ensure the client truly understands them—going beyond mere compliance disclosures to offer genuine education. As each client’s situation is distinct, cookie-cutter advice is simply not enough.
A substantial obstacle to Australians seeking financial advice is cost. Since the financial services industry has faced significant regulatory reform over the past decade, many firms have experienced higher compliance costs, resulting in fewer advisors serving a growing population of retirees. The exodus of professionals, combined with surging demand, has elevated fees.
Ethically, advisors need to be transparent about these costs and the value clients receive. Some firms have turned to “scaled advice,” focusing on a single issue (like superannuation consolidation or transitioning into retirement) to make services more accessible. Others embrace digital or “robo-advice” to handle straightforward scenarios.
Vanguard’s report highlights that nearly half of Australians turn to Google, Facebook, Reddit, or similar online sources for retirement guidance. This is a double-edged sword: while free and immediate, such information can be misguided or incomplete, leading individuals to adopt risky or suboptimal strategies.
A professional advisor acts as a crucial filter—someone who evaluates this flood of information against rigorous, up-to-date research and the client’s precise circumstances. Ethically, advisors should neither dismiss digital resources outright nor allow them to overshadow robust professional guidance. Instead, they can direct clients toward reliable, reputable calculators and educational material to deepen financial literacy, while clarifying how broad, generic advice differs from customized professional planning.
As Australia experiences the largest intergenerational wealth transfer in its history, retirees increasingly face the dilemma of giving away money now versus leaving an inheritance later. Interestingly, survey participants broadly agreed that retirees should prioritize enjoying their own hard-earned wealth, rather than conserving every dollar for future generations. In reality, however, many older Australians struggle to balance their desire to help their children and grandchildren against the risk of depleting their own funds.
A prudent approach is open, family-centric communication, guided by professional advice. Advisors can help structure formal lending agreements to protect the client in the event of a child’s financial crisis or relationship breakdown. Alternatively, smaller monthly transfers, rather than an upfront lump sum, can provide an ethical compromise: children receive ongoing help, while retirees retain more capital in the short term. This structure preserves the parent’s dignity and avoids undue financial risk—a hallmark of ethical financial planning.
Any conversation about intergenerational wealth must also address the unfortunate reality of elder abuse. While most families have the best intentions, occasionally, an adult child may unduly pressure a parent into making large gifts, or manipulate them into disadvantageous financial moves. A professional advisor has an ethical duty of care to watch for red flags—such as signs of cognitive decline, sudden transfers, or a mismatch between the client’s stated wishes and the child’s requests. Protecting an older client’s interests, even if it means challenging family members, is a core ethical responsibility.
Vanguard’s research further reveals that many Australians—even retirees who are already drawing on their super—engage minimally with their fund. Some do not understand their fees or the intricacies of performance reporting, and many fail to adjust their super’s asset allocation to changing risk appetites over time.
From a professionalism standpoint, it is imperative that advisors provide ongoing, not episodic, support. Detailed annual reviews (or more frequent if needed) allow for adjustments in line with market conditions, personal circumstances, and ever-changing regulations. Professionals also have a duty to ensure that marketing labels like “balanced,” “growth,” or “conservative” reflect an accurate understanding of risk. A fund labeled “balanced,” for example, might have 60–70% of its holdings in growth assets—hardly balanced by some definitions.
Ethical conduct also means honest disclosure and a robust process for comparing super funds. Whether an advisor favors an industry fund, a retail fund, or a self-managed super fund structure, they must present an “apples to apples” comparison that covers:
Equally, there is a professional obligation to avoid rhetorical or promotional language that obscures these details. Rather, the aim is clear, fact-based presentation, enabling informed client decisions.
Retirement fears often revolve around health decline, be it physical or cognitive. For many retirees, home ownership can become a central piece in funding care—downsize and release equity if needed. Yet even among higher-net-worth retirees, reluctance or lack of forward planning can pose a challenge. Some remain fixated on holding the family home for inheritance purposes, potentially compromising the quality of their own later life.
Financial advisors can act ethically by prompting open discussions about aged care. It can be delicate for clients to confront the possibility of future vulnerability, but early planning allows choice—choice of facility, choice of receiving at-home care, or choice of leaving behind certain assets for loved ones. Addressing these topics when a client is still cognitively and emotionally capable fosters autonomy and helps family members align around the client’s wishes.
Another widespread observation is the rise of phased retirement. More Australians want to reduce working hours rather than stop abruptly. Some move to consulting roles or part-time positions. From an advisory standpoint, this changes how retirement projections should be modeled. Phased retirement or “transition to retirement” income streams can stretch a client’s capital and ease the emotional shock of leaving the workforce.
The professionalism lies in helping the client see how pension income, partial salaries, superannuation drawdowns, or re-contributions can complement one another for the most favorable financial and emotional outcome. It also means advisors must maintain flexibility in their approach: not every client wants to adhere to a rigid timetable.
A cornerstone of ethical financial planning is ongoing engagement. Rather than appearing only at pivotal moments, a dedicated advisor follows the client’s journey throughout various life stages—accumulation, mortgage repayment, children’s education, approaching retirement, transitioning, and post-retirement. This continuity allows timely course corrections and nurtures a deep mutual trust.
When clients “dip in and out” of advice, they may miss valuable opportunities. The complexities of superannuation, legislation updates, or market shifts can undermine a client’s plan if not regularly monitored. By maintaining consistent check-ins, advisors uphold a professional standard that benefits the client’s long-term welfare.
Given the rising cost of advice, it is imperative for advisors to be upfront about all fees. Clients should see exactly what they are paying for investment management, administration, and the advisor’s professional service. Ethically, this means delivering documentation in plain language and offering tangible benefits in return—comprehensive financial projections, regularly updated strategies, and emotional reassurance via informed counsel.
Advisors who demonstrate both competency and integrity can justify their fees, gaining clients’ trust and respect in the process. They uphold the profession’s reputation by aligning advice with each client’s best interest, rather than product sales or hidden commissions.
The “How Australia Retires 2024” report highlights key trends in the retirement landscape—rising cost-of-living pressures, property-related challenges, and fears of outliving one’s assets. Amid this complexity, professional financial advisors stand as vital guides. From ensuring transparent modeling of retirement income to addressing delicate family dynamics around intergenerational wealth, advisors have the power to transform anxiety into clarity.
The ethical dimensions of this guidance cannot be overstated. A truly professional advisor places the client’s well-being at the center of every decision—empowering them with knowledge, respecting their values and wishes, and guarding against undue risk or exploitation. This includes recognizing when to encourage a client to slow their gift-giving to children or exploring monthly, rather than lump-sum, transfers to preserve long-term security. It also means respectfully discussing the possibilities of aged care or the reality of partial retirements, thereby helping clients maintain both financial stability and personal dignity.
Finally, while technology offers immense potential—particularly in the realm of “general advice” or simplified scenarios—human expertise remains critical for navigating the holistic, deeply personal journey of retirement. Australians deserve financial advice that is grounded in data, delivered with empathy, and carried out with unwavering honesty. Those values, combined with the rigor of professional qualifications and continuous development, ensure that retirees can face the future with confidence and peace of mind.
By embracing these principles—transparency, fairness, competence, and compassion—financial advisors not only guide clients toward a secure retirement but also advance the profession’s standing in society. Through a blend of lifelong engagement, objective research, and meticulous planning, Australians can retire in a manner that upholds their dignity, secures their assets, and gives them the freedom to enjoy the rewards of decades of hard work. The journey is complex, but with ethical, personalized guidance, the outcomes can be profoundly rewarding for both client and advisor.
Accreditation Points Allocation:
0.10 Technical Competence
0.10 Client Care and Practice
0.10 Professionalism and Ethics
0.30 Total CPD Points