Wheelhouse Investment Partners’ managing director and portfolio manager, Alastair MacLeod said Australian investors have a big focus on dividend yield and imputation credits which can lead to a higher risk of capital loss, even though those investors may be enjoying solid income. As such, the growth-income balance could require a shift.

“When you hit retirement, the tipping point is that rather than putting money in every quarter, or every month, here we start taking money out every month,” he said, noting that this a crucial change in requirements, and also has psychological effects.

Retirees need a regular income stream as they are unable to get it through a salary, as well as better downside protection as the ability to recoup losses is also diminished.

The losses also hit harder psychologically as they impact a portfolio that is already in the decumulation stage.

“But the other dynamic is that you still need the growth because you are in retirement for 20 years.

“In the current environment — where there are low interest rates — the old ways of generating that income with downside protection [mean] you're just not getting an acceptable return. And if anything it's kind of paradoxical; you're actually increasing your risk by putting more low interest bearing assets in the portfolio.”

He explained that investors should consider retirement as a 20-year naval voyage. The ship needs to be well-enough provisioned to cover the length of the journey but also be versatile enough to protect against adverse weather and the risk of capital being eroded too early.

“The risks are completely different. And so you need a strategy or an approach that reflects that,” he said.

“You still need to get to 20, you still need to have the growth, but you need to de-risk it.”

This also means thinking twice about building retirement plans around government policies, like cash refunds on excess dividend imputation credits.

“People have built their retirement plans around receiving this and structured their portfolios to deliver that. You just really need to diversify and try to minimise the risk of any one thing going wrong that can really derail your retirement.”

He explained that Wheelhouse’s approach was to shift the income-growth balance to two-thirds income so that a greater share of income protects retirees against a loss.

“But the quid pro quo is that because it's income, it's capped, so that in a very strong market it would drag a little. But for retirees, it's a much better shaped return that better aligns a retiree’s objectives with the underlying asset class.”

He said that while there are many ways to skin a cat when it comes to retirement income strategies, there’s “no alchemy” outside of leveraging that will see investors avoid risk without costing an equity rate of return.

“Our view is, look, we need to take some risk. If markets go down you need to be willing to share some of that pain. But it gets to a point where it makes sense for your capital to start being protected more aggressively.”

more on this topic

Property

Zagga's ninth anniversary sees focus on investor education in real estate private credit

In a significant milestone, Zagga, a key player in the Australian real estate sector, is celebrating its ninth anniversary with a renewed commitment to investor education. The company has grown ...Read more

Property

Australian property’s quiet pivot: resilience hides a new competitive map

Australia’s housing market remains sturdier than the macro noise suggests, but the sources of resilience have shifted. For operators, the profit pool is migrating from ‘volume at any price’ to ...Read more

Property

Gen Z’s 5% deposit rush: how policy‑driven demand is reshaping Australia’s housing value chain

A government-backed 5% deposit guarantee has triggered a surge in first-home buyer intent among Gen Z, pulling forward demand and resetting competition across banks, brokers and buildersRead more

Property

Cautious bidders, smarter sellers: a Queensland auction case study on repricing risk

Queensland’s auction market has hit a caution cycle as buyers price in higher borrowing costs, global uncertainty and cost-of-living pressure. Clearance softness is forcing agencies to re-engineer ...Read more

Property

Trust, technology and triage: what NSW’s ‘name and shame’ signals for real estate governance

NSW’s latest enforcement action on real estate trust accounts isn’t a one-off embarrassment; it’s a stress test of sector governance. With licences suspended and penalties applied, the message is ...Read more

Property

Vacancy is rising, demand is resilient: A case study in defending yield as Australia’s rental cycle rebalances

After a blistering run, Australia’s rental market is loosening at the edges. Vacancy is edging up off historic lows, rent inflation is set to moderate into 2026, yet underlying demand remains ...Read more

Property

Don’t lose the deposit: A case study in stopping real estate payment fraud — and the ROI for doing it

Deposit redirection scams are quietly eroding buyer savings and agency reputations in Australia’s property market. This case study unpacks how a mid-tier real estate group redesigned its settlement ...Read more

Property

The $12m threshold: Why portfolio value, not property count, now defines Australia’s investor elite

The old yardstick of six properties as shorthand for investment success has been overtaken by a harsher reality: in today’s market, elite status is defined by balance-sheet strength, not asset countRead more