How long your money lasts in retirement depends on how you plan to spend it. Are you planning on SKI-ing – ‘spending the kids’ inheritance’, or do you want to leave a legacy? Once we understand your expectations we can work out if you are going to be able to make them happen or help you with a retirement plan to get there.
While many of us dream of retiring early there are two age rules that can have an impact on your choices if you don’t have savings outside of superannuation. These are the ages at which you are eligible to access your superannuation and the aged pension (if you are eligible) to fund your retirement.
Miranda and Peter came to see us recently about their retirement plans. We explained to the couple that there are no laws in this country that dictate the age at which you retire. It is really about your circumstances and the crucial element is planning for your retirement so that you have enough money to last.
One of the most common questions our clients ask us is, ‘how much money will I need to retire?’ The answer to this very important question depends on many factors. The lifestyle you want to lead and the number of years you are likely to spend in retirement are a great starting point but there are many other variables you will need to consider. Estimating how much money you’ll have when you retire depends on your current salary, super balance, assets, and any inheritances that may be coming your way. With so much to consider it makes sense to seek professional retirement planning advice.
Hands up if you would like to pay less tax. If you’ve had an unexpectedly good year or have sold an asset, tax can become a problem. With the right advice, there may be a solution. Local business owner, Mitch recently came to us for help after selling a property. He was looking down the barrel at a large tax bill and wanted to know if he could minimise this if possible.
