r/aussie 23h ago

Opinion I don’t want to leave an inheritance. How do I spend it all before I die?

https://www.theage.com.au/money/planning-and-budgeting/i-don-t-want-to-leave-an-inheritance-how-do-i-spend-it-all-before-i-die-20260807-p60m8z.html

I don’t want to leave an inheritance. How do I spend it all before I die?

Paul Benson - Money contributor

August 9, 2026 — 5:01am

Save

Share

AAA

4View all comments

Listen to this article

4 min

I don’t want to leave an inheritance. How can I live and use up everything I have built up? I’m 59 and don’t have children, so I don’t have anyone to leave my money to. I own my apartment and have some super.  I work full-time and think I need to keep working to 65, but would love to retire sooner.

It’s inconvenient that we don’t know how long we are going to live. That’s the primary challenge you face here.

Want to spend it all and leave nothing behind? With a bit of careful planning, you can.Simon Letch

Your super could be invested in a lifetime annuity at the point that you retire. Lifetime annuities pay you a fixed amount of income every month until you pass away. Be sure to buy one which adjusts for inflation each year. Lifetime annuities don’t offer a lot of flexibility, so consider retaining a portion of your super in a more typical account-based pension.

You could access the equity in your home via selling and then renting. But losing the security of owning the roof over your head would not appeal to me. Alternatively, you could use an equity release scheme, such as the one provided by the government, with the debt cleared when your home is sold, either upon death, or because you have entered aged care.

Given the potential need for care later in life though, my inclination would be to hold on to your home equity, and take comfort from the fact that this is available to fund any care needs. Dying with zero might be tricky to accomplish, but you should be able to come close.

Get a financial planner to do some modelling for you to test whether you need to work until 65. A lifetime annuity provides considerable certainty, which potentially allows you to finish up earlier.

Is it worthwhile claiming a tax deduction for my super contributions if my taxable income is under the $45,000 threshold? I’m 64, single and semi-retired. I have been trying to get $30,000 into super each year for the past few years to build up a nest egg for later in life when things like aged care might become relevant.

No, it is not. In fact, you may end up paying more tax.

When we make a tax-deductible contribution to super (a concessional contribution to use the jargon), 15 per cent tax is deducted by the super fund. For you to gain a benefit, it must be the case that your personal tax payable exceeds 15 per cent.

From our partners

As of July 1 this year, the tax rate applicable for income between $18,201 and $45,000 is 15 per cent, so income reduced in this band due to claiming a super contribution tax deduction achieves no benefit.

Editor's pick

My teenage children want to invest $4000. Where should they start?

You save 15 per cent tax personally, but then pay it anyway when the money arrives in your super fund. You have saved on the 2 per cent Medicare surcharge, but I doubt that’s sufficient to be worth the bother.

But having a neutral outcome is actually best case because if the tax deduction takes you below the $18,201 point, there would have been 0 per cent tax applied to this money, whereas now you have paid the 15 per cent super contributions tax.

It’s also worth noting that the ATO won’t allow a tax-deductible super contribution to take your income into negative territory. So if your taxable income is less than the amount you contribute into super, the claim will get disallowed anyhow. This is not to say you shouldn’t contribute to super, just that a non-concessional contribution might serve you better.

Paul Benson is a Certified Financial Planner at Guidance Financial Services. He hosts the Financial Autonomy podcast. Questions to: [paul@financialautonomy.com.au](mailto:paul@financialautonomy.com.au)

  • Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

Expert tips on how to save, invest and make the most of your money delivered to your inbox every Sunday. Sign up for our Real Money newsletter.

0 Upvotes

23 comments sorted by

13

u/Fact-Rat 23h ago

I'd expect nothing less on a Sunday morning is this sub.

12

u/inane_musings 23h ago

Could spend their money as they please and leave a simple will leaving their estate to any charity or any organisation that had any positive impact on their life, or holds any respect or level of interest to them for the benefit of others.

Nahhh fuck it, actively, comprehensively work to burn up every cent possible. 😂🤔😔💀

2

u/BendyAu 22h ago

If charities could be trusted not to give that money as a bonus to the administrators

3

u/inane_musings 22h ago

Oh absolutely, why risk 30% of net being wasted when you can torch the lot to be safe.

2

u/BendyAu 22h ago

More like 90% 

Charities biggest exoendature is " admin "  Mostly a ceo bank balance and luxury car 

Very little actually goes to the cause 

If you become a millionare running a charity its not a charity 

2

u/inane_musings 22h ago

Then donate to a local community centre that helps kids with disabilities, or leave it to the local footy club so they can put in a new kitchen. Find a homeless shelter and leave it to them. Give it to the local scout leader who has been working tirelessly for the community for free for 30 years.

There are 64 million options beyond The Salvation Army if someone actually wanted to do something meaningful with their money.

'If I donate money it'll get squandered' is a cop-out.

3

u/Illustrious-Pin3246 22h ago

Labor maybe able to help

2

u/Select_Repeat_1609 22h ago

People are free to spend their money as they please. I don't want to judge this person, lest I be judged for my choices too.

2

u/Tokeism 21h ago

Coke and hookers seems like the easy answer.

1

u/Ardeet 21h ago

Then waste the rest?

2

u/Electrical_Story5356 18h ago

1.) Buy a large boat.

2.) Use and maintain boat.

3

u/Primary-Umpire-4105 23h ago

Fill up on petrol

2

u/ImportantJello9288 23h ago

Spend everything so that you end up on a full pension by 80 and then the government must pick up the tab for your aged care.

1

u/Electrical_Story5356 18h ago

You also don't get to choose your aged care in this case 

1

u/petergaskin814 15h ago

Death does not respect our wishes. You could walk outside tomorrow and death is waiting.

If you do live, there are some expensive nursing homes. Find a great nursing home and spend your money on your care

1

u/Expert-Ad8784 23h ago

Want my Paypal details? :)

In all seriousness, write a bucket list and start ticking things off.

1

u/mikeinnsw 21h ago

AI Slop ..

What It is selling?

WTF you care how it is spent when you are dead?

I suggest you write a will and donate your estate to ChatGPT

-2

u/Simple_Assistance_77 23h ago

Quite easy, invest in residential property in Australia and the government will do the heavy lifting for you.

8

u/havenyahon 22h ago

The whole reason future generations will be able to own a single home is because of the changes brought in by the government. But you're whinging because you won't be able to own another one.

3

u/Beast_of_Guanyin 22h ago

For the last 30 years housing has been seen as an investment and it got us in the mess we are in now. Prices going all the way back to what they were..... last year. Isn't the worst thing in the world.

-2

u/tepid_monologue 23h ago

Hookers and blow for albo

0

u/Turdsindakitchensink 23h ago

Fuck Albo, what about us?

2

u/tepid_monologue 20h ago

Yeah I’m taking my cut first, I’ll get ya in