While many of us dream of retiring early there are two age rules that can have an impact on your choices if you don’t have savings outside of superannuation. These are the ages at which you are eligible to access your superannuation and the aged pension (if you are eligible) to fund your retirement.
Recently referred clients, Sally and Doug had decided that they would like to be able to retire in ten years and they came to see us for advice on how to make their dream a reality. They are passionate adventurers and have a bucket list of challenges they want to tick off, including a trek in the Yellowstone National Park. Sally and Doug were conscious that to do this, a younger retirement would be beneficial, so they had set a goal of retiring at 55.
The pandemic has had a significant impact on interest rates and with the official rate now sitting at 0.25 percent retirees are having to re-evaluate their portfolios to ensure their investments are providing sufficient income. The hardest hit are those who are heavily invested in cash as the returns are not what they used to be. In this environment, we are encouraging our clients to seek advice and to consider rearranging their portfolios to include a diversity of asset classes that can deliver higher returns over the long term.
