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Retirement Planning

Retirement Planning Tips for Retirees Aged 40 to 65

November 12, 2021

The Australian Institute of Health and Welfare estimates the average life expectancy at 84 years for men and 87 years for women. If you retire at 65 years old, you’ll have more than 20 years for retirement. That’s a long time, so planning for your retirement should be carefully done with expert guidance. 

 

If you’re nearing retirement and are not sure if you’ll have enough money, there are always ways you can get your retirement savings back on track.

You can still plan and have a comfortable retirement, no matter what age you are.

As the life expectancy in Australia continues to rise, it’s more important than ever to plan your finances for retirement.

Here are some tips for retirees of different ages:

Retirement Planning in Your 40s: Sort Out Your Super Fund

Your super fund is one of your most valuable tools in retirement. In your 40s is the perfect time to boost your super. 

Ensure you only have one super fund that you are contributing to avoid paying extra fees. You can choose to change your investment option as well to achieve higher growth. 

Unfortunately, for many Aussie retirees, they can’t just rely on your employer’s compulsory super guarantee of 10% of their income. Instead, many people choose to top up their super balance and make extra voluntary super contributions. 

  • You can contribute up to $27,500 each financial year of concessional contributions (pre-tax)
  • You can choose to contribute up to $110,000 a year of non-concessional contributions

Find out more about voluntary super contributions.

 

Retirement Planning In Your 50s: Work Out a Practical Retirement Plan

Your 50s is a time in your life when retirement planning is likely at the forefront of your mind. 

If you still have a mortgage, it might be wise to consider efficient ways to pay this off before you retire.

If you’re between the ages of 55 and 64, know that this is the time when you may consider slowly transitioning into your retirement.


Transition to retirement is one way to ease out of the workforce, while still accessing some of your super funds.

 

You could get a Transition to Retirement (TTR) pension so you can reduce your working hours without deducting your income.

A TTR pension lets you transfer some of your super to a different pension account and withdraw a certain percentage of it as income. It may either be tax-free or taxed at a 15 per cent rate or less than your marginal rate. 

Retirement Planning In Your 60s: Think Long-Term

As you enter retirement, it’s time to start implementing your retirement plan and think about the specifics. 

You have three options for what you want to do with your super balance. 

  • You can take it out as a lump sum
  • You can use it to begin a super income stream
  • Or you can simply leave it in your super fund

It’s always important to review your investment strategy but even more so when you retire and lose your regular salary.

Even if the general trend is upward for most shares and properties, your ability to withstand short-term volatility in prices reduces when you’re no longer employed. Another option you have is to channel your funds into defensive assets, such as fixed income, bonds and cash investments. 

 

Seek investment advice in the Gold Coast to perfect your retirement investment strategy.

Your retirement is supposed to be the time when you can simply relax and enjoy life. You get to do whatever you wish with your time and money, so planning for it can be rewarding. 

Since the retirement planning process can be complicated and complex, it’s best to seek the professional help of a financial consultant, so you can achieve your goals and enjoy financial freedom.

Cambio Group can help you get your finances in order, whether you’re making changes of big or small importance, based on where you are today and what you want from life. 

Our experienced and professional financial advisors can help you achieve your financial goals. So, if you need help with your retirement planning from a financial advisor on the Gold Coast, book a meeting with our financial advice team.

Let us know how we can help you today. Get in touch!

 

Disclaimer: The information (including taxation) in this website does not consider your personal circumstances and is of a general nature only – unless otherwise stated. You should not act on the information provided without first obtaining professional advice specific to your circumstances.

 

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