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Financial Planning for Self-Funded Retirees

Updated: Oct 9, 2023

How to plan for retirement in your 60s

Mark and Linda approached ActOn Wealth, intending to retire within the next three years.

As a couple in their early 60s, they had diligently accumulated decent superannuation balances for their age and owned two investment properties, which they’d paid off in full.

They intended to remain in their primary residence, which was also mortgage-free. However, they had concerns about relying solely on rental income from their properties due to difficulty finding tenants when vacancies arose. They sought expert financial planning advice to structure their assets optimally for retirement.

With some of the best financial planners in Melbourne on our team, ActOn Wealth was well-placed to assist. We provided the future self-funded retirees with excellent financial advice bespoke to their situation, and we can do the same for you.

Financial strategies for successful retirement

What our Melbourne financial planners did for Linda and Mark

Retirement Planning and Asset Structuring

ActOn Wealth comprehensively analysed Mark and Linda's financial situation, goals, and concerns.

Recognising the potential risks of rental income, the advisors recommended a sell-down investment strategy. By reducing their exposure to rental income, Mark and Linda could minimise reliance on an uncertain revenue stream and mitigate potential financial burdens.

Our team worked closely with the couple to determine the optimal timing and approach for selling the properties, considering factors such as capital gains tax (CGT), liability and boosting tax-effective assets for retirement.

Superannuation Contribution and Pension Strategy

It will come as no surprise that superannuation services are key to financial planning for 60-year-olds.

By making additional contributions, the couple could boost their tax-effective assets, allowing them to draw a tax-free pension from their superannuation in retirement. This strategy provided them with a stable and tax-efficient income stream to cover their cost of living and achieve their desired lifestyle goals. They could do this without ongoing tax implications associated with alternate sources of income.

Personal Insurance Review

Mark and Linda had personal insurance policies, but the premiums became unaffordable over time.

Our financial advisors in Melbourne conducted a thorough review of their insurance needs. The subsequent private insurance advice recommended modifying policies to align with their current circumstances. Since they no longer had any outstanding debt, the advisors adjusted the coverage to reflect their reduced risk exposure.

This adjustment resulted in more manageable premiums without compromising their financial security.

Retirement Planning Roadmap

Self-funded retirees need a razor-sharp focus on their retirement plan.

The ‘kicking the ball down the road’ approach is foolish, no matter how significant your nest egg might seem. Our wealth-building professionals conducted comprehensive retirement planning for Mark and Linda.

The plan incorporated the optimised asset structuring, superannuation pension strategy, and adjusted personal insurance policies. The roadmap provided a clear financial framework, outlining the couple's annual cost of living and incorporating their desired lifestyle goals, such as annual holidays.

We designed the plan to ensure the couple’s financial security throughout retirement and provide for their adult children.

Self-funded retirement plans now on track

Through their partnership with ActOn Wealth, Mark and Linda gained peace of mind regarding their retirement goals.

They successfully restructured their assets to reduce reliance on rental income and minimise financial risk. By implementing the sell-down strategy and boosting their tax-effective superannuation assets, they secured a tax-free pension stream for retirement. Adjustments to their personal insurance policies reduced premiums and provided appropriate coverage tailored to their current circumstances.

The retirement roadmap provided them with a clear financial plan. They could enjoy their retirement, meet the cost of living, and leave a legacy for their children.

Mark and Linda could confidently move forward, knowing their retirement was well-structured and aligned with their lifestyle and financial goals.

Contact our self-funded retirement planners

Financial planning for 60-year-olds is a savvy move, no matter how well-off or prepared you feel. Given the stakes are so high, planning a self-funded retirement requires particular expertise and knowledge. Contact our team of Melbourne financial planners today for a no-cost, no-obligation call and let’s plan your comfortable transition to retirement.

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