How do I fund the later years in retirement?
The team from OzPlan Financial Services discuss what retirees need to consider financially for a comfortable retirement.
As you plan for the later years of retirement, protecting your financial well-being is crucial to ensure a healthy, connected, and stress-free future.
Things like inflation and the cost of living are unfortunately out of our control. That said, we can estimate our expected living expenses in retirement, things like housing, healthcare, transport, and leisure activities. Having an understanding of future expenses will help you better plan for your financial needs in retirement and your savings strategy, this is where a professional advisor can really help.
How much money do I need to retire?
How long is a piece of string? To determine how much you’ll need, you first must consider things like expenses, lifestyle and healthcare costs, both current and what you may require in the future.
The Association of Superannuation Fund of Australia (ASFA) provides quarterly updated estimates for living costs in retirement. Reminder, these are estimates and do not take into account your individual needs and requirements.
ASFA Retirement Standard for June quarter 2024:
The below budget for various households and living standards are for those aged 65-84 with the presumption of the retiree/s owning their own home.
| Annual living costs | Weekly living costs | |
|---|---|---|
| Couple – modest | $47,731 | $917.90 |
| Couple – comfortable | $73,337 | $1,410 |
| Single – modest | $33,134 | $637.19 |
| Single – comfortable | $52,085 | $1,001 |
What are the best investment options for retirement savings?
It is wise to consider investing in a diversified portfolio that includes a mix of assets to protect your savings from market fluctuations. You can also explore superannuation + pension funds, which offer tax benefits and long-term growth potential. We strongly suggest speaking to a financial advisor who can understand your requirements and create a personalised investment strategy just for you.
We often see clients unaware of the potential concessions and Centrelink entitlements they may be eligible to. Contact the team at MB+M to review your eligibility and see how we can help you arrange your assets to ensure full entitlements and financial security.
How can I ensure my savings will last my lifetime?
Create a realistic budget and monitor your expenses, it’s no different to any other stage of life. Develop a plan for how you will generate income during retirement including maximising government entitlements. This could include drawing from your superannuation, investments, pension entitlements, or other sources of income.
Ensuring you have enough income to fund your retirement will give you peace of mind when planning for retirement. Of course, unexpected things can always happen so it is best to have a safety net you can fall back on.
If you are planning for retirement or actively in retirement, contact the team at MB+M to see how we can help you live the retirement of your dreams with financial security.
Want to read more about retirement? 7 questions to ask yourself about retirement, guide to concession cards, + what lifestyle are you planning for when you retire?
Source:
https://www.superannuation.asn.au/resources/retirement-standard/
Book an appointment
If you’re interested in booking an appointment, your first consultation is free, call us on 03 5831 1233.
Published October 2024.
The information provided in this article is general in nature only and does not constitute financial advice.