RETIREMENT & PLANNING

I'm about to retire

Retirement planning is about ensuring that your investment plans - both for now and into the future - will provide you with the security of a regular income and allow you to maintain your desired lifestyle in retirement.

Retirement means different things to different people. For some, it means switching from full-time work to working part-time. For others, it means simply leaving work permanently and enjoying time with the family, travelling, or taking up a hobby or sport, etc.
Whatever retirement means to you, one thing is certain: You need to make sure that your hard earned savings continue to work hard for you in retirement.

Medical advances and healthier lifestyles mean that most of us will probably reach a ripe old age. For a couple now in their forties, there's an 80% chance that one of them will celebrate their 90th birthday, and a 44% chance that one of them will live to be 100. Such sobering statistics make it very imperative to start saving sooner rather than later to ensure enough funds are amassed to last through retirement.

How do I set up a retirement plan?
There are 3 key things to consider when setting up your retirement financial plan:

  • Maintaining liquidity - ensuring that there are cash funds set aside for emergencies;
  • Income - making sure that your super savings and income from any part-time work are providing enough funds to maintain your desired lifestyle;
  • Investing in Growth Assets - Medical advances and better lifestyle choices, as mentioned above, mean that many of us will probably have to fund more than 20 years in retirement. So, it's really important to ensure your investments are able to generate adequate capital growth to fund a longer retirement.

A good retirement portfolio should provide financial independence, security and peace of mind, and should ensure your income needs are adequately met.

Why is it so important to plan for retirement?
Most of us expect to retire one day; few of us really think about the impact of retirement on our financial security. This is surprising, considering we could spend a third of our lives as retirees. Whether retirement is still several years away or just around the corner, you should think about what you’d like to achieve in the years following full time employment.

Your lifestyle in retirement will be governed by your financial position to a large degree; hence the importance of starting to plan for your financial security today. The earlier you start planning, the more you will generate for your retirement nest egg.

Don’t leave it to chance. With careful and proper planning, your retirement could include some of the best years of your life.
What about the age pension?

Many people think they can rely on the age pension to provide them with an income in retirement.

However, to ensure social security benefits are only paid to those in genuine need, the Government uses strict assets and income tests to determine eligibility.

Furthermore, as we’re living longer and having fewer children, there will be proportionately fewer people in paid employment to fund retirees in the future.

The implication is that many people won’t be eligible to receive social security benefits in retirement. Designing a sound investment plan, we can structure your assets to generate income, whilst maximising any social security entitlements you may be eligible for.

Social security eligibility is important, as it can give you access to benefits such as discounted pharmaceuticals and travel, and a variety of other entitlements.

How much money will I need?
The exact amount of money you’ll need will depend upon the following factors:

  • The age at which you wish to retire;
  • The number of years until you retire;
  • The lifestyle you wish to lead;
  • The level of income you’ll need; and
  • Your current savings.


For more information about retirement planning strategies or to discuss your current circumstances and determine whether you are making the most out of your entitlements and retirement savings, contact AUGEO on 02 4984 5545 for a confidential risk-free consultation.


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