What if your legacy started now?

And in today's newspapers, 'Your retirement savings are there to be spent. Don’t be afraid to'. This article is for those who struggle to stop squirrelling and start spending.

Bec Wilson

Jun 21, 2025

In this week’s edition:

Feature: What if your legacy started now?
Newspapers: Your retirement savings are there to be spent. Don’t be afraid to
Podcast: What makes good wine good value?
From Bec’s Desk: Out of office

What if your legacy started now?

These days, most people inherit money when they’re in their late 50s — typically between 55 and 59. By that point, many are already well established. The mortgage is paid off, or close to it. Super is in decent shape. The adult kids, now in their 30s or 40s, are mostly grown and financially sorted. So when that inheritance arrives, it’s often optional, not essential.

And that raises a big question.

Do you hold onto it, and one day pass it on to your 60-something-year-old children when you die with the benefits of compounding and maybe the risk of paying superannuation death tax know they might not need it as much then either? Or do you start thinking a little differently?

What if, instead of waiting until you’re gone, you used some of it now? Not all of it, and not instead of spending on yourself — which I’m always in favour of — but to give your grandkids a genuine head start. Something that could shape their future in a way they’ll never forget.

Because if we’re being honest, that’s where the real impact is.

They’re facing housing costs and education expenses we couldn’t have imagined. Many are working hard and still struggling to get ahead in their early adult years. Without a little intergenerational help, it’s becoming harder for young people to secure a financial foothold.

But here’s what they have that we don’t — time. They’re young. They don’t need the money now. And for anyone who understands the power of compound interest, time and money together can be transformational.

When you pair time with the right kind of investment structure, a modest gift today can grow into something truly meaningful by the time they want to use it.

I’m often asked by retirees and pre-retirees who know they have enough, and whose adult children are doing fine too, how they could do something truly smart for their grandkids. Something that helps them get ahead in the long run.

There are two standout strategies more people are exploring.

The first is contributing to their superannuation from an early age, with the goal of helping them buy a first home. This became a much more powerful strategy when the government introduced the First Home Super Saver Scheme (FHSSS).

The second is setting up an investment bond that grows steadily over time and pays out when they need it most. Neither strategy is flashy, but both are long-term, tax-smart, and packed with potential.

Now, as you know, I’m not a financial adviser, so I won’t recommend specific products. But I do want to show you what’s possible, so you can explore the options or ask the right questions and explore it further.

Let’s take a closer look at how they work — and why they might just be the most powerful financial gift you ever give.

Option 1: Boosting their super (yes, really)

It might sound odd at first — putting money into super for a ten-year-old — but stay with me.

You can contribute to your grandchild’s super long before they’re working or earning themselves.

Thanks to the First Home Super Saver Scheme, voluntary contributions of up to $15,000 a year (eligible under the scheme), along with their deemed earnings, can be withdrawn—up to a lifetime cap of $50,000—to help fund a first-time home deposit (assuming the scheme remains in its current form).

Why is this so powerful? Because it gives the money time to grow, with compounding doing much of the heavy lifting. Super also has a lower tax rate on earnings — 15 per cent in accumulation phase — so it’s an efficient place to invest. And the money is protected. It can’t be spent on a jet ski, a Euro holiday, or a dodgy crypto investment. It’s locked in until they’re ready for a real step forward.

To set this up, you (or their parents) open a super fund for the child. Some funds allow accounts from any age, though not all accept applications from children.

You can make up to $15,000 in voluntary contributions per financial year that count towards the First Home Super Saver Scheme, with a total of up to $50,000 eligible to be withdrawn under the scheme over their lifetime. If you’re going to use this strategy, it’s worth checking that the investment settings inside the super fund are geared for long-term growth — because putting it all in cash defeats the purpose of compounding.

When the child is ready to buy their first home, they apply to the ATO to release the funds under the FHSSS. The money must be withdrawn under those rules, and only for that purpose.

There’s a catch, but it’s a good one. This is a long-term gift. They can’t access the funds until they’re at least 18, and realistically, not until they’re ready to buy a home. That’s the point — it builds discipline and delayed gratification, as well as wealth. If the fund grows at 7 to 10 per cent a year, the balance could double every 7 to 10 years.

We don’t talk much about super as a strategic gift for grandchildren — but to me, this sounds superb.

Option 2: Investment bonds — your secret weapon

Investment bonds are one of the most flexible, tax-efficient ways to set money aside for someone else’s future. They’re often overlooked, but incredibly useful.

In simple terms, you invest a lump sum - or make regular contributions - into a tax-paid investment. That means the company managing the bond pays tax at a flat 30 per cent, and after 10 years, any earnings can be withdrawn tax-free.

You stay in control. The bond is in your name. But you can nominate your grandchild as the beneficiary and decide when they receive it. Maybe when they finish uni. Maybe when they turn 25. You choose.

There are other benefits too. Because the money stays in your name, Centrelink’s gifting rules don’t apply. (though the value may count as an asset if you're assessed for Age Pension). You’re not penalised for being generous. And if something happens to you, the bond can pass directly to the beneficiary without going through your estate, and without being taxed at 17 to 32 per cent like superannuation left to adult children often is.

To get started, choose a reputable bond provider - companies like Australian Unity and Generation Life are popular options. Then choose your investment strategy (balanced, growth, ethical, etc.), and begin contributing. You can add up to 125 per cent of the previous year’s contribution annually.

What you get is a flexible, controlled, tax-aware way to help the next generation, without handing over cash too soon, and without any administrative headaches.

Together, these two strategies — early super contributions under the FHSSS and investment bonds — give you the tools to do something that lasts. Something strategic, thoughtful, and future-focused.

And that’s what legacy is really about.

This information is general in nature and does not take your personal circumstances into account. I’m not a licensed financial adviser, so I’m not recommending any particular product — just sharing strategies that others have found useful. Always seek personal advice if you’re thinking of making a financial decision.

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Out of office

Short and sweet. I’ve signed off on all my projects for a few weeks. And now I’m sitting on a big jet plane on my way to Europe right now for a real treat - a family holiday for my husband’s 50th birthday. I haven’t been to Europe in the Summer since I was 24! And this time we’re taking the kidults - a real thrill to be travelling with them before they hit the age where they no doubt will find it harder to fit in doing things around their own lives.

When I get back there will be just one week until the release of Prime Time: 27 lessons for the new midlife. That’s pretty exciting.

So, I’m signing off on the week to week stuff for a few weeks. I’ll still write my newspaper column, and release the Prime Time podcast — because I can do all those things by being well-organised and having a great team around me. But the rest is going a little quieter.

I’m making my Prime Time count. A girl can’t resist practising what she preaches can she 😊.

So, if you are looking for me — sorry, I’m OOO living my best life!
Bec x

PS: If you’ve been thinking about joining the Spring Edition of the course, the earlybird tickets are still selling. 👉 All the details are here. There’s a downloadable brochure and you can book your place here too. It starts on 28th August so still a few weeks yet — but the price won’t stay this low for the whole time.

Your retirement savings are there to be spent. Don’t be afraid to

Extract of article published in print in The Age, The Sydney Morning Herald, Brisbane Times, WA Today on Sunday 22nd June 2025.

For years, or maybe even decades, today’s retirees have been doing the right thing. They’ve saved. Budgeted. Knocked off the mortgage. Built their superannuation balances quietly and consistently, through market ups and downs, job changes, family chaos, and rising costs of living.

They’ve done without at times, put others first, and followed the advice to squirrel away as much as they could for the day they finally stopped working.

But now that retirement is here, or just around the corner, there’s a new kind of challenge. One that we don’t discuss much, and one that spreadsheets can’t really solve. Because while many retirees have a decent stash of savings, they’re not sure how, or if, they should start using it.

They’ve spent decades being sensible, stretching every dollar, putting off indulgence, and quietly building security. Now they’re sitting on their pile of financial nuts … and feeling strangely frozen.

They’re not sure if they’re allowed to spend it. They worry about being frivolous. They hesitate to take that big trip, or even upgrade the car. They track expenses to the cent, even when they don’t need to any more.

It’s not a problem everyone has, of course. But more retirees than you’d think are struggling with the same question: “I’ve done the hard part. Am I actually allowed to enjoy it?”

How do you start spending what you’ve saved?

It’s not as easy as it sounds. Many retirees are finding it incredibly difficult to switch gears, from saving, protecting and growing their money – to actually using it.

(READ ON… my articles are never paywalled for Aussies in The Age, The Sydney Morning Herald. )