What does retirement mean to you? I talk to a lot of people about retirement. In fact, my life’s work and purpose is all about getting you to your best retirement. But I think the concept of retirement is changing and I wanted to share a few ideas to get you thinking about this too.
Firstly we are all living longer. Back in our grandparent’s day, one would leave school at 16, get a job, stay in that job for most of one’s life, retire at 65 and drop off the perch at 72!
Not a lot of need for retirement planning.
Fast forward to today and most will tell me that they want to retire at 60 (some less, some more) yet the trend is living into our 90’s now. Funding 30 years? Now there is a strong need for retirement planning.
Did you know that in 1986 the government pension paid $204 per fortnight and this figure met 90% of household needs. Today Centrelink pays $873 pf and this equates to only 37% of household needs*.
Generation X will be the first to retire having had superannuation their whole working lives. However super wasn’t designed to provide income for 30 years. So retirement plans are having to consider how to fund a 30 year time line.
Another changing aspect of retirement is that we are doing more in retirement. No longer happy with the “once in a lifetime trip”, now it’s travel every year; eating out; designer clothes and cars; designer grandchildren; cosmetic surgery; gym memberships and more.
So can we have it all? Well the answer, of course, is it depends!
It depends on many things, including your expectations for living expenses and the things you want to do in your golden years? What income do you earn now and how much of this are you putting away for tomorrow? Wealth takes time to grow, it doesn’t happen overnight.
Another trend we see is the desire to work longer, and not always for the money. Perhaps your retirement will include working for a few months each year? An aging workforce is slowly becoming more accepted and this trend will continue to rise by necessity. Working gives us a sense of purpose, a place to be, keeps us active as well as providing the financial benefits.
*source McCrindle 2016.
This information contained in this document has been provided as general advice only. The contents of this document have been prepared without taking account of your personal objectives, financial situation or needs. You should, before making any decision regarding any information, strategies or products mentioned in this document, consult with your GPS Wealth Ltd financial adviser to consider whether it is appropriate having regard to your own objectives, financial situation and needs
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