Mondy Financial Services

Three phases of retirement.

Phase 1: Carefree Years – Travel, Renovations, Grandkids, Social activity

Phase 2: Quiet Years – Less travel, health issues, spending more time at home

Phase 3: Needing some assistance – Home care, Residential Aged Care

According to Association of Superannuation Funds of Australia this is the amount you need for retirement.


Comfortable retirement

Modest retirement

Age Pension



$27 987






Phase 1: Carefree Years

How to Boost Your Money

Superannuation: you can have up to $1.6M in super in a 100% tax-free environment. In pension phase all income on earnings is tax free and all pension payments are tax free.

Keep working: Age pensioners have access to the work bonus of $300/fn before any reduction in pension. This accumulates if not used so if doing a block of work all unused work bonuses can be used in one go.

Invest: in more ‘growthy’ investments than a bank account or term deposit (be aware that your money will be exposed to volatility and may go down).

Look into investing in an annuity: this would give you a regular guaranteed payment with a guaranteed death benefit

Maximise your Age Pension: Funeral bonds, Granny Flat interest, spend money on your home

Phase 2: Quiet Years

How to Boost Your Money

Reverse Mortgage: Can access equity in your home eg on a $700K home

  • Age 60 – can access $105 000
  •  Age 70 – can access $175 000
  • Only pay for what you take but not until the home is sold.

Downsizer Contribution into Super: Can put $300K (each if a couple) when downsizing or simply changing homes (conditions apply)

Phase 3: Needing some assistance

Home Care packages: Will assist people to stay in their home longer – Gov subsidised but must be assessed and go on waiting list

Residential Aged Care: Provides accommodation, support with daily living activities and personal care – Gov subsidized but must be assessed by ACAT

Paying for Aged Care


  1. RAD (Refundable Accommodation Deposit) – lump sum
  2. DAP (Daily Accommodation Payment) – like paying rent or interest on the RAD
  3. Combination of the 2


  • Fully refundable (unless you’ve asked the facility to deduct some of the fees)
  • Government guaranteed
  • Exempt for Age pension asset test
  • Becomes part of the estate

Paying for Living expenses & Care – actual cost is up to $111K per year but is government subsidised.

  • Basic Daily Fee – 85% of single Age pension (everyone pays)
  • Means tested fee – calculated on assets and income (not everyone will pay this)
  • Extra Services Fee – pays for extras such as wine with meals, newspaper (not always compulsory)