As we approach retirement some people start to panic a little wondering if they are truly looking forward to the time of their life when they no longer have to work. Is your retirement plan ready? All of a sudden something they have been pining for is becoming real! Instead of worrying, have a read of the following tips and if necessary, act now. After all, it’s your future – and it could be here sooner than you think. 1:…
Retirement can be an exciting phase in your life. But all the recent changes to superannuation bring with them lifestyle and financial issues you need to be aware of as you plan your retirement. Retirement means different things to different people. For some, it’s an opportunity to travel, to begin that project they’ve been putting off for years, or to just relax, spend time with the grandkids and dabble in their favourite hobbies. Retirement should be a time to relax…
As most long-term investors know, investment markets have their ups and downs. The downs are usually associated with periods of uncertainty, perhaps due to political or economic factors, or even natural disasters. Uncertainty leads to volatility – more extreme movements in asset prices – which can have a big impact on portfolio values. This can be of particular concern if you are preparing for retirement and preparing for your last payday. So what can you do about it? If you…
While it’s easy to be discouraged by superannuation and fear you will never have enough money saved to stop working, remember even a modest superannuation balance can make a big difference in retirement. For every $100,000 saved in superannuation, you can expect these funds to generate a return of 6%, or $6,000, a year. When this is paid out as a pension, it equates to $500 a month tax-free. Of course, this is doubled if both you and your partner…
With an aging population, an increasing number of Australians are opting to live in retirement villages. While pitched at the ‘over-55s’, the average age of entry is 74, and average age of residents is 81. Depending on the retirement villages, attractions include having home maintenance issues taken care of, more social contact, access to recreational facilities and on call assistance in case of medical emergency. Moving to a retirement village can also free up capital to support living costs in…
Australian retirees face a ‘double whammy’ when it comes to funding their retirement. On the one hand we, as a nation, are enjoying longer and healthier lives. On the other hand, recent low interest rates have slashed the returns on the traditional bedrocks of post-retirement investment portfolios such as term deposits, cash management accounts and annuities. A dilemma Funding retirement, this is the dilemma facing Dave and Linda. On the point of retirement these fit and active 65 year olds…
Many people eagerly anticipate retirement life. Others view its approach with trepidation, worried over how they’ll fill their days. Bob retired from work in his early sixties and, deciding he was way too young to retire from life, downsized his suburban home for a country lakeside retreat. He bought a little boat, adopted a shelter-dog and got busy. The local volunteer fire service deemed him past firefighting age, so Bob helped by cleaning the station and equipment. During emergencies, he…
Sam and Sally Smith have worked hard all their lives, paid their taxes and, now they have retired. As part of their retirement planning they feel they are entitled to a full Centrelink age pension. Jan and Jim Jones have also worked hard and paid their taxes. However, concerned that Australia’s aging population and ballooning pension bill will make it increasingly difficult to qualify for an age pension, they have sought to be as financially independent in retirement as possible.…
The millennial in Australia are facing an unprecedented challenge when it comes to planning for retirement. Many will never fully retire, as they will be unable to accumulate the necessary funds to support themselves for an extended period of time. With the cost of living steadily increasing, and many millennials grappling with large debts and limited financial resources, it is likely that more people will have to work well into their golden years. How much is needed for a comfortable…
While millennials have for decades been treated like ‘the children of Neverland, who never grew up’, the reality of retirement planning is fast catching up with this generation, who are now young adults between the ages of 24 and 40. Like generations before them, they are now buying, or at least trying to buy, homes and starting families of their own. And with this, the stark reality is that their retirement is looming just around the corner in the early…