Balancing dual financial commitments

Many Australians are increasingly facing a unique financial challenge: how to successfully save for retirement while also supporting children through significant life milestones, such as tertiary education or buying their first home.

The desire to ensure a comfortable retirement often competes with the urge to give children a financial leg-up. However, these acts of generosity can have lasting impacts.

It’s critical to remember that your own financial security underpins your ability to provide sustained support. The key is to avoid sacrificing your retirement wellbeing for short-term family needs.

“Working closely with customers, I’ve seen how the right guidance can empower families to achieve their goals without compromising long-term financial wellbeing.” Max, NAB Premier Banker

Here’s how to approach this balancing act with confidence and clarity.

Define your retirement goals first

Start by establishing a clear vision for your retirement. Consider the lifestyle you wish to maintain, any travel ambitions, and health-care needs. Use sophisticated retirement calculators and consult with your relationship manager to project future cash flow requirements. As a Premier Banking customer, you may have access to tailored financial modelling, enabling you to set a realistic savings target and determine the level of flexibility in your financial plan.

Understand your family’s needs

Open discussions with your children about their financial aspirations and challenges. Are they seeking support for university fees, or do they need help getting on to the property ladder? Encourage them to explore scholarships, government grants, and first home buyer schemes. By fostering their independence and financial literacy, you help equip them for long-term success while reducing the burden on your own resources.

Smart strategies for balancing both priorities

Ringfence your retirement savings

Consider keeping your superannuation and retirement assets separate from funds earmarked for family support. This ensures your nest egg remains untouched, regardless of changing circumstances.

Gift strategically

If you choose to help with a home deposit or education, set clear limits and communicate these openly. You might opt for milestone-based gifting—such as matching your child’s savings or contributing to specific expenses—to promote accountability and shared commitment.

Leverage investment products

Explore potential tax-effective options like family trusts or education bonds. These may help your children while preserving your own financial position and minimising tax implications.

Get professional advice

Engage your NAB Premier Banker or your financial adviser to review your portfolio regularly. NAB Premier Banking customers can benefit from bespoke guidance that aligns family support with overall wealth management strategy.

Final thoughts: Maintain confidence and flexibility

Remember, building wealth is a long-term pursuit. Periodically revisit your financial plan as your children’s needs evolve and your retirement horizon approaches. Life rarely follows a straight path—market conditions, health changes, and family dynamics can all influence your priorities. Flexibility, paired with robust planning, is the hallmark of successful wealth stewardship.

Balancing retirement savings with supporting your children is a matter of careful planning, open communication, and strategic action. As a NAB Premier Banking customer, you have access to resources and guidance that can help you make informed decisions, securing your own future while empowering the next generation. With confidence and clarity, you can achieve both goals—ensuring a legacy that endures for years to come.

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Important information

The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial and taxation advice before acting on any information in this article.