Living longer - What's the big deadlock?

Living longer…Great what’s the big deal?

Some sobering facts…

The average retirement shortfall is $150,000.*

Australians underestimate the length of time they will be retired by up to 7 years.*

Only 10%* of people have a plan if they do live longer than they expect.

If you are 65 now, there is a 50%* chance that you will be alive at 95…you might need to plan for over 30 years of retired living!

12%# of working people expect to never be able to retire

64%# of retirees wish that they had worked full time for longer

Of retirees not prepared for retirement, 14%# said they’ll have to go back to work to fund their financial shortfall

It is fair to say that most of us have thought about when and how we might like to retire, whether it’s 10 or 30 years into the future. Most of us have a rough idea of the age we would like to retire, however it is important to understand that many of us don’t get to live out our plans as we might have hoped! More often than not, injury, illness or redundancy puts a spanner in the works, and prevents us from staying in the workforce to continue to build superannuation assets.

There is no magic $$$

There is no magic $$ amount that you need to retire on, despite what you might have heard. In reality it all depends on your health now and in the future, if you are in a relationship and what your lifestyle expectations are.

It is also important that you don’t simply think of your retirement savings as a lump sum. For example, I need $1,000,000 in superannuation assets before I retire…    

It is the income that you can generate from the lump sum that is important. This is where quality financial advice really comes to the fore, as investment strategy can help make the difference between you living how you want to in retirement versus how you can afford to live. 

Retirement isn't a one-off event anymore

In the past you would hit 60 or 65, have some tea and sandwiches, receive a nice watch and be on your way!  Now, retirement tends to be a progressive event that occurs over an extended period of time. It is evolving for a variety of reasons…

1.    We need to work for longer to fund our longer lives

2.    We don’t want to be removed entirely from the workforce for 20 plus years

3.      A lot of us actually like working, and want to keep active

4.    There are some strategies, such as Transition to Retirement which enable you to access super, whilst salary sacrificing when working, to maximise taxation benefits.

In the “prime” of your life and retirement is a distant dream for you?

What you do in your 30’s and 40’s can have serious implications on the state of your finances when it comes to finally retire.

Contribute over the superannuation guarantee… a simple understanding of compound interest would tell you that there are amazingly tangible benefits from contributing extra to super now.

Consider what might happen if you were out of the workforce for an extended period with a serious injury or illness. If this happens when you are in your late 40’s or 50’s it could prove difficult to make up the difference by the time you retire...also you might need to face the possibility that you might not be able to re-enter the workforce in the same capacity, if at all. This is why we focus on ensuring that your wealth is protected whilst you are building it over the most productive period of your employed life.

Food for thought?

Give us a call or email and we will be happy to discuss how your future retirement is shaping up, and how we can help get you on track.




The content of this presentation is intended to be general information only and has been prepared without taking into account any person’s objectives, financial situation or needs. Each person should consider its appropriateness having regard to these matters or obtain relevant professional financial advice before making any financial decisions.  Examples are illustrative only. Each person should obtain any relevant professional financial, taxation and social security advice before making any financial decisions.