Jacqueline Barton

Protecting what matters most

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We plan for holidays, home renovations, and retirement but we’re less likely to plan for the unexpected. Life insurance is one quiet but powerful way to protect the people you love from financial stress if something happens to you.

Whether you’re raising a family, supporting a partner, or building a business, life insurance helps ensure that your legacy includes stability rather than uncertainty. It can be a powerful tool for your family’s financial resilience.

Life insurance is designed to provide a lump sum payment to your nominated beneficiaries when you die or, in some cases, are diagnosed with a terminal illness. The payout can help ensure that your loved ones aren’t left scrambling to cover costs such as mortgage repayments or rent, outstanding debts, funeral costs and living expenses during an already emotional time.

It can be particularly helpful if:

  • you have dependents who rely on your income
  • you’re the primary breadwinner or contribute significantly to household finances
  • you have joint debts with a partner
  • you want to leave a legacy or charitable gift
  • you’re a business owner

Even if you’re young and healthy, life insurance can be affordable and locking in a policy early may mean lower premiums over time.

How much life insurance do you need?

There’s no one-size-fits-all answer, but a good starting point is to ask yourself: “If I were gone tomorrow, what financial gaps would my family face?”

Here’s a simple framework to help you estimate your coverage needs:

1. Calculate your financial obligations

Start by listing the major expenses your loved ones would need to cover:

  • Mortgage or rent: how much is left to pay?
  • Living costs: groceries, utilities, transport, childcare
  • Children’s education: school fees, uniforms, university costs
  • Debts: credit cards, car loans, personal loans
  • Funeral and legal costs: can be around $10,000–$20,000i

Add these up to get a baseline figure.

2. Consider your income

How long your family would need financial support. Multiply your annual income by the number of years you’d want to replace it, for example, five to 10 years.

If you earn $100,000 and want to provide seven years of income, that’s $700,000.

3. Factor existing assets

Do you have savings, superannuation, or investments that could help cover costs? Subtract these from your total needs to avoid over-insuring.

4. Account for inflation and future needs

Costs rise over time, and your children’s needs will evolve. It’s wise to build in a buffer of say, 10-20 per cent to future-proof your coverage.

5. Review regularly

Your life changes, and so should your insurance. Marriage, children, mortgages and career shifts can all affect how much cover you need. We can help with a regular review to ensure your policy stays aligned with your goals.

Different types of life insurance

There are a few key types of cover to be aware of:

  • Term life insurance pays a lump sum if you die or are diagnosed with a terminal illness.
  • TPD (Total and Permanent Disability) covers you if you’re permanently unable to work due to illness or injury.
  • Trauma insurance pays a lump sum if you’re diagnosed with a serious illness like cancer or stroke.
  • Income protection replaces a portion of your income if you’re temporarily unable to work.

Life insurance in super

For many Australians, life insurance is already tucked away inside their superannuation fund. Most super funds automatically include a basic level of life cover and TPD insurance, and some also offer income protection.ii

Premiums are typically lower than retail policies and are deducted from your super balance. In many cases, you won’t need to complete a health check to get default cover, and the premiums may be more tax-effective depending on your circumstances.

While insurance in super is convenient, it’s not always comprehensive and it’s not guaranteed to suit your needs in the long term.

If you’re relying on insurance through super, it’s a good idea to review your fund’s policy and consider whether it’s enough especially if your circumstances have changed.

If you’re unsure where to start, we’re here to guide you through the options, crunch the numbers, and make sure your policy reflects your values and responsibilities

i The Cost Of A Funeral In Australia | Finder

ii Insurance through super – Moneysmart.gov.au

Just what the doctor ordered

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A successful retirement isn’t just about having your finances in tip-top shape; good health and wellbeing are also key to being able to enjoy your retirement years. Here are some handy tips for a healthier, more active life in retirement:

  1. Undertake regular health checks and keep up-to-date with your vaccinations.
  2. Maintain a healthy body weight to help avoid diabetes, hypertension and elevated lipids.
  3. Eat a healthy diet with plenty of vegetables, minimise red meat, drink lots of water, and practice good oral hygiene.
  4. Participate in aerobic exercise. Check with your doctor and aim for 150+ minutes of moderate intensity or 75+ minutes of vigorous activity weekly.
  5. Use body weight and functional exercises to help maintain muscle mass.
  6. Stretch and do functional movement exercises or yoga to maintain flexibility.
  7. Ensure your home is age-friendly by removing fall hazards, improving lighting and accessibility.
  8. Develop an anti-stress regimen such as meditation or ‘forest bathing’.
  9. Consider getting a pet to provide companionship and encourage activity.
  10. Maintain strong social connections with family, friends and community.
  11. Practice gratitude and maintain a sense of purpose.
  12. Engage in hobbies that align with your values and interests.
  13. Optimise your brain function through lifelong reading and learning, puzzles, games, learning a language, or a musical instrument can help.
  14. Get adequate sleep and maintain a consistent sleep schedule.

Strategies for an unexpected retirement

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The best time to start planning for retirement is yesterday.

But the second-best time? Today.

About two-thirds of Australians retire earlier than they anticipated because of unexpected events such as job loss or redundancy, they need to care for a family member, have a sudden illness or injury, problems at work or a partner’s decision to retire.i

But, whether you’re in your 50s, 60s, or even beyond, it’s never too late to take meaningful steps toward a more secure and fulfilling retirement.

The good news is that with the right guidance and a few smart moves, you can still build a retirement plan that reflects your values, supports your lifestyle and gives you peace of mind.

Where to begin

Before you make any changes, it’s important to understand your current financial position. This includes:

  • your superannuation balance
  • other savings or investments
  • debts such as your mortgage, credit cards and personal loans
  • expected retirement income sources including the Age Pension, rental income and part-time work

Boost your super

Even if you’re starting later, there are ways to accelerate your super growth using:

  • Salary sacrifice Contributing pre-tax income into super can reduce your taxable income while boosting your retirement savings.
  • Personal contributions You may be eligible for a tax deduction or government co-contribution depending on your income.
  • Catch-up contributions You may be eligible to add to your super but be aware of the caps on contributions.ii

These strategies can be especially powerful in your 50s and 60s, when your income may be higher and retirement is on the horizon.

It’s also a good idea to regularly consider your super investment options and review your risk tolerance and time horizon.

Deal with debt

If possible, getting your debt under control before you retire is a useful strategy.

You could consider using your superannuation or other savings or downsize your home to pay off a mortgage or other loans. But first, it’s essential to carefully check the tax impact, the effect on your super and whether any potential government benefits will be affected.

Reassess your lifestyle goals

Retirement isn’t just about money, it’s about how and where you want to live, how much travel you’d like to do and if you’d continue to work part-time.

Clarifying your lifestyle goals helps shape your financial strategy. It also ensures your retirement plan reflects your values, not just your bank balance.

How much will I really need?

Aim to create a retirement budget. Estimate your future expenses including housing, food, travel and healthcare and compare them to your expected income. This helps identify any shortfalls and guides your savings strategy.

You will also need to consider the amount of time you might spend in retirement. This will depend on when you retire (planned or unexpected) and how long you live. This is called longevity risk. Given life expectancy is unpredictable, there is a possibility that your retirement savings may not last throughout retirement.

Understand your entitlements

Many Australians are eligible for government support in retirement, including:

  • Age Pension Based on income and assets, available from age 67 (for those born after 1957).
  • Concession cards For discounts on healthcare, transport and utilities.
  • Rent assistance If you’re renting privately and receive the Age Pension.

Even if you don’t qualify now, you may be able to restructure your finances to maximise future entitlements.

Review regularly and remain flexible

Retirement planning isn’t a one-time event. Life changes and so should your strategy. Regular reviews help you:

  • Adjust for market movements or legislative changes
  • Update your goals and spending patterns
  • Ensure your estate planning is current

Flexibility is key. Whether you retire gradually, take a sabbatical, or pivot to a new venture, your plan should evolve with you.

Next steps

Retirement planning is about taking the next step rather than chasing perfection. Whether you’re starting late or simply refining your strategy, every step you take now helps shape a more secure and meaningful future.

And remember that retirement isn’t an end point. It’s a new beginning even if you retire earlier than you anticipated. With the right plan in place, you can step into this next chapter with clarity, confidence and purpose.

We’d be happy to help you review your current retirement plan and identify any gaps in retirement goals and create a strategy should you need to retire earlier than expected.

i Retirement and Retirement Intentions, Australia, 2022-23 financial year | Australian Bureau of Statistics

ii Understanding concessional and non-concessional contributions | Australian Taxation Office

Estate planning for blended families – proceed with care

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Estate planning can be difficult and stressful, but for blended families, there’s an added overlay of complexity.

According to the Australian Institute of Family Studies[1], blended- and step-families make up around 12% of Australian families with dependent children, and there are almost 16% single-parent families. For these families, ensuring every person is treated fairly is a significant challenge, where the needs of the current spouse, shared children, and children from previous relationships must all be considered.

To avoid legal problems and damaged relationships, adequate planning is essential.

It begins with an open and honest communication with family members, which, while uncomfortable, can help prevent misunderstandings and potential disputes after you’re gone.

A financial or estate planning professional can help you work through the legal process and even facilitate difficult conversations.

The Australian legal system provides the following tools to support blended families and ensure your wishes are honoured.

Wills

A professionally-drafted Will is the main element in any estate plan, enabling you to specify how assets are to be distributed.

For blended families, ambiguity must be avoided so a well-written Will ensures your wishes are clearly articulated.

Mutual Wills

Mutual Wills are used by couples who agree that their Will won’t change if one partner dies. They are handy when children are involved because they offer reassurance that children from previous relationships are included in an inheritance.

While many couples find Mutual Wills are the perfect planning solution, they can also be inflexible and surviving partners may be restricted from using or selling some of the assets, particularly if they remarry.

Testamentary Trusts

A Testamentary Trust is created as part of a Will, coming into effect after your death.

They provide control over your estate by managing asset distribution and avoiding family disputes or creditor claims.

Testamentary Trusts are helpful when children are involved, ensuring their inheritances and assets are protected.

On the downside, they can be costly, complex to set up and administer, and legal advice is imperative.

Binding Financial Agreements (Prenup/Postnup)

Binding Financial Agreements (BFAs) are agreements drawn up prior to a marriage (prenup) or after the marriage (postnup).

They aim to clarify expectations regarding property ownership and financial arrangements to avoid future disagreements or claims on the estate by a surviving spouse.

BFAs can offer the couple a sense of security and clarity and are useful in protecting assets; however, as they are relatively new to Australia, the law around them is still evolving.

As a result, they can be overturned by a Family Court if you do not receive appropriate legal advice or the agreement was not properly drafted.

Additionally, they don’t always allow for future changes such as children not yet born, or variations to income or health.

Ultimately, of course, when drafting any estate plan, it’s important that you think carefully about how each member of a blended family is considered – not just now, but into the future.

There are several ways to structure your Will. For example, you might allocate a percentage to each beneficiary or distribute specific assets to individuals. Whatever you decide, be certain to document your rationale behind all your decisions.

Seek professional guidance to reduce confusion and support you in determining the best tools for tailoring an estate plan that reflects your family’s unique situation.

Peace of mind comes with knowing your family’s future financial security will be managed, but it’s important to note that no estate plan is a set-and-forget.

Regular reviews are essential as family circumstances rarely stay the same. Marriages begin and end, children are born, grow up, and have their own families.

Your estate plan should be revised at least every couple of years and especially after any major life event.

Estate planning for blended families can be complicated. However, with planning, professional advice and thoughtful conversations, you can be confident that your loved ones will be protected.

[1] https://aifs.gov.au/research/facts-and-figures/families-and-family-composition

Keeping your cool when the markets heat up

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Investing isn’t just a numbers game. It’s an activity that stirs various emotions from hope and optimism to fear and anxiety.

Whether the ASX is surging or stumbling, emotional responses to market movements can shape outcomes just as much as economic fundamentals. Understanding those responses is crucial to building resilience, especially in unpredictable times.

These patterns underscore the importance of long-term perspective, especially in a market shaped by both global sentiment and uniquely local factors.

How emotions enter the equation

We like to think our financial decisions are rational, but the truth is more complex. Investors aren’t robots crunching numbers in isolation. We are influenced by news cycles, cultural values and personal stories from friends, family and colleagues.

When markets rise, euphoria and FOMO can drive hasty buying decisions. During downturns, anxiety and regret can push investors to sell at a loss, despite having sound long-term strategies.

This pattern has played out across decades, from the dot-com bubble to the COVID recovery. And remember that emotional investing isn’t just a beginner’s problem. Even seasoned investors can be swept up by sentiment if safeguards aren’t in place.

What’s more, emotional responses can vary depending on individual risk tolerance, stage of life and even personality traits like conscientiousness or impulsivity.

Psychologists have long observed how financial stress activates similar responses to physical threats, triggering fight-or-flight instincts rather than thoughtful analysis. That’s why even well-informed investors may react defensively when facing market instability.

Financial decisions don’t exist in a vacuum. They’re bound up with identity, security and future aspirations. Emotions are often the hidden driver behind market behaviours.

The good, the bad and the balancing act

Emotional investing isn’t all risk. In the right conditions, it reflects conviction, clarity and purpose. For example, values like patience and belief in the future can help investors stay committed during market dips.

Life changes such as home ownership, welcoming a child or retirement can bring useful emotional clarity to financial decisions. And ethical investing often stems from emotions such as care and connection to community.

When used with discipline, emotions can reinforce sound decisions rather than undermine them. Investors who use emotional clarity to establish long-term goals tend to feel more confident, even when short-term volatility strikes.

That said, emotions can also derail strategy. Panic selling during downturns, overconfidence after gains and herd mentality all pose risks.

The 2022 market correction saw many Australians pull out of super investments prematurely, missing the rebound that followed. These reactions stem not just from fear but also from a desire to act, even when patience may be more effective.

Learning from behavioural finance

Behavioural finance gives us tools to interpret emotional reactions. Biases like loss aversion, recency bias and anchoring affect decision-making in subtle but powerful ways.

These include:

  • Loss aversion – People often feel the sting of losses more intensely than the joy of equivalent gains, which can lead to overly cautious or reactive choices.
  • Recency bias – Recent events weigh heavily on perceptions, leading investors to expect trends will continue simply because they’ve just occurred.
  • Anchoring – Fixating on a past portfolio value or arbitrary benchmark can skew rational assessment.

Recognising these tendencies helps investors avoid knee-jerk decisions and design portfolios that stay aligned with goals over time. It’s not about eliminating emotion; it’s about becoming aware of how it operates and mitigating its effects through smart responses.

After all, markets are always shifting. Emotions will always emerge. The goal isn’t to shut them out, but to understand them and develop structures to keep emotions from steering the ship. When investors learn to pause, reflect and act with intent, they not only improve outcomes but feel more confident in their journey.[

If you’d like to explore strategies to build emotional resilience in your portfolio, or tools to help remove bias from investment decisions, please give us a call.

Strategies to stay grounded

Here are practical ways to help manage emotional influences in different market cycles:

  • Set clear goals and time horizons to provide an anchor during uncertain and volatile times. Understanding the reason for your different investments, such as retirement, education or succession planning, may help maintain focus and commitment
  • Recognise your emotional triggers and personal biases. Think about how you’ve reacted in the past to market events to understand how to manage future choices
  • Automate contributions and portfolio rebalancing where possible to reduce the risk of knee-jerk reactions to market fluctuations
  • Use the power of dollar cost averaging to remove the risks of trying to decide the best time to buy and sell shares. Investing a fixed amount at regular intervals, such as monthly contributions, can mean a lower average share cost over the long term
  • Speak to us, we can be objective about your investments when your emotions are threatening to derail your portfolio
  • Diversify to spread your investments across different asset classes, industries and areas to reduce potential volatility and losses
  • Regularly review your portfolio to keep it on track and prevent emotional attachments to specific assets
  • Align your investments with personal values and life priorities

These strategies aren’t just for crises; they can help investors stay focused and empowered in different phases of the market cycle.

i Market Psychology Chart: The 14 Stages of Investor Emotions – StockBrokers.com