Households in many countries reach retirement with lump sums of financial wealth accumulated in defined contribution retirement plans. Australian households offer a useful case study in how retirees manage wealth from DC accumulations. We study the dynamics of retirement wealth and portfolio allocation using the three wealth waves of the Household Income and Labour Dynamics in Australia panel survey. The average retired household accumulated wealth in 2002-06 and decumulated in 2006-10 consistent with trends in financial asset prices. At older ages, households prefer portfolios with less risk and more liquidity, while maintaining ownership of the family home. The probability of households depleting financial wealth to very low levels increased over the sample, however households who deplete financial wealth do not liquidate their housing wealth at higher rates than other households. In contrast to the U.S., the overall effect of health shocks on the wealth of retired Australian households is minimal.