I’m 68 and about to inherit $1.5 million. What should I do with it?

November 2, 2025 — 5.01am

I will soon inherit money from my mother, who recently died. It will be somewhere in the region of $1.5 million. At present, I have a very modest superannuation account, from which I draw $1500 a month to supplement the age pension. Inheriting this amount will mean losing the age pension, and so I will be entering the realm of a self-funded retiree. What should I be doing with this money? I am 68 and happy to remain in my current debt-free home.

At 68, you can get some of this money into super. This new money could then be merged with your existing superannuation savings and a larger pension established, which will boost your income, helping to offset the loss of your age pension.

Inheriting a large amount late in life can feel overwhelming, but there are plenty of ways to put your money to work.Credit: Simon Letch

Due to contribution limits, however, the bulk of this inheritance will need to remain outside the superannuation environment. A diversified portfolio of growth and conservative assets would probably make sense.

It could be set up to give you monthly income, in the same way that your superannuation does. You could also consider purchasing an annuity for a portion of your inheritance (inside or outside of super), which would give you a guaranteed level of income for either a set period (for instance, 15 years) or the remainder of your life.

An annuity can be set to adjust for inflation, which is an important protection for such long-term investments. This could be a good substitute for the loss of the age pension because there is no variability or dependence on investment markets.

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Consider reaching out to a financial planner for a customised plan. The sum involved here is large, and I’m sure your parents worked hard to amass it. Money spent on a well-considered plan would be an excellent investment, I think.

I have recently sold my shareholding in my company and will receive a significant lump sum. I have no outstanding debts apart from a manageable mortgage on my home. What should I do with the proceeds from the sale? I’m thinking ETFs would be a suitable option but also think I should diversify my investments to help protect my capital.

Thanks for your question. I think you might be putting the cart before the horse here. I would start by getting clear on what you want this money to do.

You don’t mention your age, so you may have sold your shareholding because you are about to retire. Alternatively, you could be 35 years old and raising a family. An appropriate investment solution will be vastly different in these two scenarios.

Clarity on your goals for the next decade or more will enable you to build a plan focused on how to best manage your business sale proceeds. This includes appropriate ownership structure, level of risk, need for income, and degree of liquidity and flexibility required.

If you have children, there might also be considerations around education costs. Perhaps your intention is to start a new business once you’ve had a break, in which case some portion of these sale proceeds will be needed for future capital requirements.

Finally, if you haven’t already done so, make sure you chat to your accountant about capital gains tax considerations. Typically, upon the sale of a business, capital gains tax applies, though there are special provisions to help manage this for small business owners that you may be able to avail yourself of.

Paul Benson is a Certified Financial Planner at Guidance Financial Services. He hosts the Financial Autonomy podcast. Questions to: [email protected]

• 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.

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