For many people, a transition to retirement is a wise approach. Whilst we all dream of not having to work, it is a major lifestyle change that has many ramifications beyond the financial. Our job is to help our clients put the right financial planning strategy in place to provide for their retirement expectations, but we also care about the big picture. Retirement is not just about the money.
The idea of being mortgage-free is very appealing and often a key financial goal for our clients. Paying off your home loan as quickly as possible to avoid paying excess interest has many benefits but many of our clients focused on accumulating wealth are also wondering whether this should be their sole focus. The question is, are there other ways to optimise any spare dollars?
There are some reasonably complex variables to think through which is why there is considerable value in seeking professional financial planning and investment advice.
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.
