Dear Ms Wise, my husband and I have just retired. He is 70 and I am 65. We have about $2 million each in superannuation but our annual expenditure ranges from $180,000 to $200,000, sometimes even $250,000. We are still supporting our children as they finish studying, so our expenses will reduce in time. This “elasticity” was OK while we were working but I’m a bit nervous about the future. Many people would argue $4 million in super would be more than enough, but what should our annual expenditure be to ensure our money doesn’t run out? We are debt-free. Nicky

The wisdom: A long-held retirement adage is the “5 per cent rule”. It suggests that income of about 5 per cent can be generated from investments each year without eating into capital. (If on the other hand, no income was generated, the money would run out in 20 years.)