With grocery prices still high, energy bills rising and families feeling the pressure to ‘make Christmas special,’ many retirees are finding this year’s festive season more expensive than expected. NGS Super financial adviser Charlie Daher shares simple, practical steps retirees can take now to enjoy the season without stretching their finances.
1. Start planning early – even now makes a difference
“Retirees often get caught by surprise in December because they’ve spent bits and pieces of their pension drawdown earlier in the year,” Charlie says. “The sooner you map out what you’ll spend on gifts, food and travel, the easier it is to stay on track.”
2. Create a ‘Christmas-only’ account
One of Charlie’s favourite strategies: set up a separate account just for holiday costs.
“We know the average Aussie spends around $800 on Christmas, that’s roughly $30 saved each fortnight across the year. Even starting now gives you clarity and stops Christmas money from accidentally being spent on other things.”
3. Anchor the season around traditions, not transactions
Retirees often feel pressure to overspend on grandkids – but it’s the experiences they remember most. Consider:
- One meaningful gift + one small treat
- Sharing a family recipe or handmade card
- Organised family activities instead of expensive presents
4. Build December into your annual retirement budget
Rather than relying on ad-hoc withdrawals, Charlie suggests factoring holiday spending into your planned drawdown strategy.
“That way your income stream supports your lifestyle year-round, and you only take additional lump sums for Christmas or travel when you actually need them.”
5. Talk openly with family about gift limits or shared hosting
Most families are relieved when someone raises it. Suggest:
- Setting price limits
- A Secret Santa for adults
- Everyone contributing a dish to Christmas lunch
6. Plan for travel costs if you have family interstate
Avoid peak days, look for senior discounts, book mid-week flights, and consider travel outside the week of Christmas. Many retirees choose early December or just after New Year to see children and grandchildren at a fraction of the cost.
7. Protect your January cashflow
Set aside money now for essential bills such as medications, utilities and insurance. A small buffer helps retirees avoid dipping back into their pension or making last-minute withdrawals in early January.
8. Use the end of the year to check your retirement settings
A quick super ‘health check’ can help set you up for 2026:
- Review your investment option
- Make sure your pension drawdown reflects your spending needs
- Check whether you’ve met your minimum payment for the year
- Consider if your living costs have shifted with rising inflation
With a little planning and a few thoughtful choices, Christmas can stay joyful without stretching your finances. The key is focusing on what matters most – connection, tradition and spending with intention – so you enter the new year feeling confident and in control.
This article is for information purposes only. Readers should always seek independent advice, taking into account their own financial circumstances.
Charlie Daher is an Authorised Representative #1263182 of Guideway Financial Service Pty Ltd AFSL #420367. Any advice contained in this article is general in nature and does not consider your financial situation, needs or objectives. Prior to acting on any information contained in this article, you need to take into account your own financial circumstance and consider whether it is appropriate for you. Read Charlie Daher’s FSG at https://guideway.com.au/FSG/NGS_Super_FP_FSG.pdf
Issued by NGS Super AFSL 233 154.
