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October 2026

October brings warmer weather, longer days, and new spring growth. It’s a fresh chance to check in, take stock and prepare for the final stretch of the year.

The continuing concerns over inflation prompted the Reserve Bank to lift the cash rate by 0.25% to 4.6%, the highest level in 15 years. The RBA says that rising energy costs and stronger than expected economic activity also contributed to the decision.

Inflation remained above the RBA’s target range, with CPI surging to 4.0%, while the trimmed mean remained steady at 3.6%.

Consumer confidence declined 5.2% to 84.4 in September, down from 88.9 in August. This reflects concerns about cost-of-living pressures, higher interest rates and continued global uncertainty.

Australian share markets were weaker during the month with the S&P/ASX 200 retreating from the 9,000-point level as rising bond yields and expectations of higher interest rates took a toll on investor sentiment.

Oil prices remained high and volatile climbing back over US$100 a barrel, while the Australian dollar eased back towards US70 cents by month’s end.

Mastering AI: it’s all in the prompts

It’s impossible to miss the buzz around Artificial Intelligence (AI). It’s changing the way we work and live – but if you haven’t yet started dabbling in it, it might seem a little intimidating.

The language sounds technical, the tools look unfamiliar, and the speed at which everything is evolving can make it seem as though you are already behind. It is completely reasonable to feel hesitant or avoid the platforms that use AI altogether.

However, if you are not using AI, you might be in the minority. The statistics show that roughly 66 per cent of people globally use AI regularly and that figure is growing all the time, so it might be worth overcoming your reticence.ⁱ

The truth is you do not need to have an in depth understanding of how AI works in order to use it well. At its core, AI responds to conversation. If you can explain a situation, describe a goal, or ask questions, you already have the skill that matters most.

Turn overwhelm into order

One of the most immediate ways AI can improve your life is by helping you organise your thinking when everything feels scattered. When your to do list feels endless and your priorities become a blur, it becomes difficult to get started.

For example, you might write:
“Here is everything on my mind this week. Turn this into a prioritised action plan for the next three days, highlighting what is urgent and what can wait.”

Seeing your responsibilities organised clearly often creates immediate relief. What felt chaotic becomes sequenced. And when you know what to focus on first, it becomes easier to begin.

Accelerate the way you learn

Learning something new often feels slow, not because it is too difficult, but because it lacks structure. Without a clear starting point, it is easy to consume random information and still feel unsure about what truly matters.

AI can help you create that structure. You might prompt:
“Create a simple 30-day roadmap to help me become competent in [skill]. Focus on fundamentals first and tell me what I can ignore at the beginning.”

That final sentence is powerful. Knowing what not to focus on prevents distraction. Instead of wandering through endless content, you follow a deliberate path.

Make decisions with greater clarity

Decision making becomes stressful when emotion clouds judgment, especially when the outcome feels important. In those moments, laying out the situation clearly and asking for a structured breakdown of potential risks, trade-offs, and implications can create valuable distance.

You could say:
“I am deciding between Option A and Option B. Break down the pros, cons, risks, and likely long-term implications of each.”

The goal is not to hand over responsibility, but to organise your thinking. Once trade-offs are laid out clearly, the right direction often feels less overwhelming.

Strengthen your thinking before you act

Another powerful way to use AI is to invite it to challenge your plans before the real world does. By asking where your strategy might fail or what assumptions you could be overlooking, you move from hopeful thinking to resilient thinking.

Try a simple prompt such as:
“Critique this plan. Where could it fail? What assumptions am I making?”

This can reveal blind spots you may not have considered. Identifying weaknesses early allows you to refine your approach while the stakes are still manageable.

Build systems that reduce mental strain

Many people rely on motivation to carry them toward their goals, yet motivation is unpredictable. AI can help you design simple, repeatable systems that remove the need to constantly decide what to do next.

For example:
“Design a simple weekly system that ensures I consistently make progress toward [goal], with clear actions and checkpoints.”

Instead of relying on how you feel each day, you follow a rhythm. Over time, small consistent actions compound into meaningful results.

The real shift

New tools often appear complex until we realise how simply they can be used.

When approached as a thinking partner rather than a technical system, AI becomes less about innovation and more about clarity. You do not need to be highly technical. You just need curiosity and a willingness to ask thoughtful questions – and be open to where the answers take you.

i Trust, attitudes and use of artificial intelligence |KPMG

The three phases of retirement: Key decisions at every stage

Retirement starts long before your last day at work

There are certain moments in life that reshape not just your finances, but the way you live.

Starting a family, moving overseas for a job, changing careers – retirement belongs in that same category in terms of its significance.

Traditionally, retirement has been viewed as a single milestone celebrated on the day you stop working. But in reality, it’s one of the longest and most significant chapters of your life – one that’s being reshaped by longer life spans, evolving retirement rules and rising living costs.

With Australians now living longer than ever, retirement can span decades, bringing new priorities, changing spending habits and different financial decisions along the way.¹

That means retirement isn’t simply something to prepare for. It’s something you’ll need to navigate through.

Know what you’re aiming for

Before thinking about how you’ll fund retirement, however, it’s worth asking a simpler question: What kind of retirement do you actually want?

The Association of Superannuation Funds of Australia (ASFA) Retirement Standard provides a useful benchmark by estimating the annual income needed to support different retirement lifestyles.

There’s no right or wrong answer. Some Australians dream of travelling the world, while others are happiest spending more time with family, pursuing hobbies or enjoying a slower pace of life closer to home.

The important thing is having a destination in mind. After all, it’s difficult to know whether you’re saving enough – or investing appropriately – if you don’t know what you’re trying to fund.

With that in mind, here are the three broad phases of retirement and the financial considerations that tend to become most important in each.

Phase 1: Building your retirement runway

The five to ten years before retirement are a critical time for financial planning.

This is when many of the biggest financial decisions get made – when to retire, what sort of lifestyle you want, whether you’re saving enough and how to make the most of your remaining working years.

Having a clear retirement plan can make a meaningful difference. A recent report has shown Australians who understand the steps they need to take for retirement are significantly more confident about funding their desired lifestyle and more optimistic about their future than those without a plan.

It’s also the time to take stock of your financial position.

While seven-figure super balances often grab headlines, they’re far from the norm. Australians aged 60 to 64 have a median super balance of around $236,126 for men and $174,655 for women.²

With many Australians approaching retirement with relatively modest super balances, making the most of available opportunities to contribute to super and strengthen retirement savings can be particularly valuable.

Here are several key questions to ask in the decade leading up to retirement:

How much do I currently have in super and other investments, and will it support the lifestyle I want in retirement?
Are there any big-ticket experiences I want to budget for, such as a luxury cruise, overseas travel or helping my children financially?
Will I be in a position to pay off my mortgage before retirement?
Do I want to stop working completely, or gradually transition through part-time or consulting work?
Would downsizing or relocating improve my retirement lifestyle or financial position?

Phase 2: Putting your nest egg to work

Once retirement begins, your financial mindset will likely shift.

Instead of building wealth, the priority becomes generating an income that can support your lifestyle while ensuring your savings last for what could be another 20 or 30 years.

For many people, this can be an uncomfortable transition. After spending decades trying to grow your retirement savings, you’re now relying on them to fund your lifestyle

Retirees also need to consider sequencing risk – the impact a market downturn can have if it occurs early in retirement while you’re simultaneously drawing an income from your portfolio.

As a result, some retirees choose to maintain exposure to growth assets alongside defensive investments and cash, depending on their circumstances, objectives and tolerance for risk.

While liquidity can help fund day-to-day spending and reduce the need to sell investments during volatile markets, growth remains important because inflation continues long after your working life ends.

Your retirement income may also come from multiple sources including investments held outside super and, depending on your circumstances, the Age Pension.

Here are several key questions to consider as you approach and enter retirement:

Where will my retirement income come from – super, investments, rental income, the Age Pension or a combination of these?
Is my investment portfolio still appropriate now that my focus has shifted from building wealth to drawing an income?
Can my income keep pace with inflation?
Do I have enough cash or liquidity to cover unexpected expenses or periods of market volatility?
Am I reviewing my spending regularly to ensure my savings remain sustainable over the long term?

Phase 3: Planning your legacy

As retirement progresses, financial planning often becomes about much more than investment returns.

Many retirees begin thinking more carefully about how they’ll be cared for if their health changes, whether their current home still suits their needs and how they want their assets distributed to loved ones.

While these conversations aren’t always easy, planning ahead can provide greater flexibility, reduce stress for your family and ensure your wishes are understood well before important decisions need to be made.

At some stage during retirement, these are some of the conversations worth having:

Is my will up to date, and have I reviewed my beneficiary nominations?
Have I considered how I would fund aged care or additional healthcare needs if they arise?
Does my current home still suit my needs, or would another living arrangement be more appropriate?
Have I appointed the right people to make financial or medical decisions if I’m unable to do so?
Does my estate plan reflect the legacy I want to leave for my family and loved ones?

Strategies to consider

Your retirement plan doesn’t need to be perfect. The important thing is to start early, review it regularly and adapt it as your circumstances change.

Here are some practical strategies to consider. As always, it’s important to consider whether any strategy is appropriate for your personal circumstances and seek professional advice if needed.

Start small. Retirement planning doesn’t have to happen all at once. Start by discussing a few key questions with your partner (or you can contact us) such as when you’d like to retire and how much super you may need.
Review your super regularly. Make a habit of logging into your super account and checking your balance, investment options, fund performance and insurance cover.
Make the most of super contributions. If you’re still working, additional concessional (before-tax) contributions could help grow your retirement savings.
Understand carry-forward contribution caps. If your total super balance is below $500,000 and you meet the eligibility requirements, you may be able to use unused concessional contribution caps from the previous five financial years.
Learn about downsizer contributions. If you’re 55 or over and meet the eligibility requirements, selling your home may allow you to contribute up to $300,000 each (or $600,000 per couple) into super.

1. ASFA Retirement Standard Budgets for various households and living standards for those aged 65-84 (March quarter 2026)
2. Median super balance, by age and sex, 2023–24 financial year – Australian Taxation Office

Source: Vanguard
Reproduced with permission of Vanguard Investments Australia Ltd
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Market movements and review video – October 2026

Stay up to date with what’s happened in the Australian economy and markets over the past month.

We are all about keeping you informed and empowered and this month’s economic and market video provides a quick overview of the shifting Australian economic landscape and what’s driving market movements.

The big news was the RBA lifting the official cash rate to 4.60%, introducing new headwinds for local markets and households.

Markets navigated a challenging month characterised by persistent geopolitical stress in the Middle East, rising bond yields, and stubborn inflation fears.

Meanwhile a softer Australian Dollar and a retreat in consumer sentiment reflected growing caution.

As always, feel free to reach out if you have any questions or want to chat about your strategy.

Click the video below to view our update.

Please get in touch if you’d like assistance with your personal financial situation.