Miranda and Peter came to see us recently about their retirement plans. The couple were in their early 50s and like many people they were assuming that retirement age directly correlated with when you are eligible to receive the age pension, which is 67 for most people in Australia. We explained to the couple that there are no laws in this country that dictate the age at which you retire. Whether you want to pull up stumps completely or cut back your work hours is up to you. It is really about your circumstances and the crucial element is planning for your retirement so that you have enough money to last.
After some discussion with Miranda and Peter about their circumstances it became clear that it would be possible for them to retire at 55 if we put a good strategy in place. This involved building a diversified savings portfolio that would provide an income between the ages of 55 and 60. Once they reached this preservation age they would be able to access their super.
When planning for retirement we always start with our client’s expectations. Miranda and Peter had been self-employed for many years. They were used to dining out once a week and taking an annual overseas holiday and were hoping to be able to maintain a similar lifestyle in retirement. They had a healthy super balance and a small share portfolio but they also had some debts that needed to be considered. The debts were tied up in two small investment properties.
Once we worked out what to do with their debts and how their cashflow was going to work leading into retirement, we could provide some modelling to show them how their money would last in retirement. We confirmed with the right strategies they could retire early and enjoy their retirement before their age slowed them down.
When our clients understand that they don’t have to wait until they are 67 to retire they often opt for an earlier exit from work. Miranda and Peter’s story is one example and there are many ways we can help clients achieve their dreams. They were pleasantly surprised with the outcome and relieved to know that they were going to have enough money to retire earlier.
If you are thinking about retiring and wondering what age is achievable for you get in touch.
General Advice Warning: The information provided in this article is general in nature and does not consider your particular investment objectives, financial situation, or insurance needs; we therefore recommend you seek advice tailored to your individual circumstances before making any specific decisions.
Dobbrick Financial Services (Gympie) Pty Ltd ABN 48 931 205 109 and Dobbrick Financial Services (Ipswich) ABN 86 100 184 521 & DFS Oakland ABN 64 340 527 395 and their advisers are authorised representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.
