Money in your 70s
Written by Glen James
Host of the Retire Right & money money money (formerly my millennial money) podcasts & author of The Quick-Start Guide to Investing.
Let’s chat about the last episode in our ‘money by age’ series, and talk about money in your 70s! This decade is about simplifying and enjoying the wealth you’ve built. By this stage, most people are no longer working and are firmly in retirement phase, drawing on super and pension entitlements. The focus shifts from accumulating wealth to making sure your money lasts, simplifying your financial affairs, and thinking about what you might pass on to the next generation. It’s also about peace of mind: knowing you’ve got enough for yourself, while starting to plan for gifting, inheritances, and how your estate will eventually be managed.
Here’s where to focus:
1. Optimise government entitlements
Once you’re over 67, government entitlements like the age pension and the Commonwealth Seniors Health Card come into play. Small strategies can boost your pension, such as using funeral bonds or structuring annuities so Centrelink counts less of your capital. Regular reviews are key, because thresholds and rules change, and what didn’t work at 68 might work in your favour at 72.
2. Manage pension income streams
Most retirees will have their super in an account-based pension. Once you’re in your 70s, the minimum annual drawdown rises to 5% of your balance, and that percentage keeps increasing with age. It’s important to manage this, if you’re drawing more than you need, you may be building up excess cash outside super, which could be better directed back into the system (within contribution rules). Conversely, if you’re not drawing enough, you can always increase it. Flexibility is there, and using it wisely means your retirement income matches your lifestyle, not just the minimums set by the government.
3. Consolidate and simplify your finances
By your 70s, complexity can be a burden. Multiple super accounts, small parcels of shares, or scattered bank accounts may once have made sense, but now they create admin for you (and eventually for your estate). This is often the decade to sell off fiddly investments, consolidate pensions, or even think about letting go of time-consuming assets like a rental property you no longer want to manage. Simplifying your financial structure not only makes life easier for you, it also makes things much clearer for family members who may need to step in later.
4. Consider a re-contribution strategy
Super balances contain a mix of taxable and tax-free components, and what you leave to adult children can be taxed on the way out. A re-contribution strategy helps reduce this. Up until age 75, you can pull money out of super and then put it back in, converting taxable amounts into tax-free ones. Done strategically, this can reduce or eliminate the tax your kids might pay on inheritance. It’s an estate planning tool, but one worth exploring while the window is open, especially if you’re unlikely to spend all your super in your lifetime. I recommend speaking with a financial adviser if this is something that might work for your situation, reach out here if you would like to be referred.
5. Review and update your estate planning (+ inheritances and giving)
Your 70s are the time to check that your estate plan is up to date. That includes wills, powers of attorney, and superannuation beneficiary nominations. Many people also start thinking about gifting while alive, whether that’s helping kids with housing or setting aside money for grandkids. These choices don’t just have financial impacts, they also carry Centrelink implications, so planning matters. Reviewing regularly ensures that when the time comes, your wealth transfers smoothly, minimises tax, and aligns with your wishes.
Your next steps from here
listen to the episode on Spotify or Apple Podcasts
If you’re in your 70s, lean into simplifying. Enjoy your money and enjoy this time!
Community question
Community member says: What happens if I’m still paying off my home mortgage when I’m nearing retirement? What are my options then?
Glen says: If you’re heading toward retirement and still have a mortgage, it’s not the end of the world. But it does mean you need to think strategically and early. When you're in your 60s, there are a few tools in the toolbox to help manage that mortgage:
1. use your superannuation strategically
Once you’re over 60 and meet what’s called a condition of release, like ceasing a position of employment, you may be able to start accessing your super, even if you’re still working elsewhere. For example, you might wrap up a casual side gig or small job, declare that to your super fund, and then legally access some of your super to knock down the mortgage. It's not a loophole, it’s actually just understanding how the system works.
2. TTR (Transition to Retirement) strategies
You might not be able to withdraw a lump sum immediately, but you could potentially start drawing down up to 10% of your super balance annually while still working from age 60 using a TTR (transition to retirement) approach. That can help you chip away at the loan, especially if you’ve got a decent super balance.
3. plan to downsize later
A lot of people live in a family home through their 60s, then downsize around 65 or 70. If the plan is to sell and move to a smaller place, that could clear the mortgage completely and even free up extra cash for retirement.
4. consider your investment property strategy (if relevant)
If you’ve got other assets, like investment properties, this is where planning matters. Many people wait until retirement to sell a property or two to free up cash and clear debt while minimising tax.
You don't need to panic, you just need a plan. And the earlier you start thinking about this stuff, the more options you’ll have. Stay curious, and remember it’s never too late to take control of your financial future. Watch this clip from the Retire Right episode where Martin and I chew on this question, it’s great to have these discussions.