Reaching 66, or specifically 66 years and six months, is a goal to which many Australians aspire.
As the official retirement age, it can mean clocking off one final time from work and switching the focus to other areas of life. However, closing that chapter on your career can mean ending the single biggest - and most consistent - income-earning stream you have. Unfortunately, the Australian pension alone will not deliver a comfortable retirement.
Of course, you may well have no intention of ever retiring, or at least not for many years still to come! However, if this is something you want to achieve and want to sustain a certain quality of lifestyle, then it’s important to ensure your wealth is geared accordingly. So, if you’re wondering how to plan for retirement in your 60s, the ActOn Wealth team is here to help, as we have done for many others. Let’s organise a no-cost, no-obligation call so you can get advice that will accelerate wealth. In the meantime, though, here are some solid ideas to consider.
Determine your income streams
The world doesn’t stop turning when we retire. No matter how prudent we might be, expenses still come in, and bills still need to be paid. How do you plan to keep the financial wheels turning when you stop working? Determining your income streams for this decade and beyond are fundamental to retirement planning at this stage. Now is the time you can convert accumulating superannuation funds into pension accounts.
Are you eligible for the Australian pension? Don’t automatically assume you’re not. There are potential ways you can structure your assets to become eligible. We’ve got a team of the best financial planners in Melbourne to help ascertain if this will be possible for you. Do you need to draw a second income from your superannuation to supplement the pension and meet your cost of living?
You might not immediately have answers to these questions, and that’s where we can help. Don’t feel like you have to learn about superannuation retirement planning from scratch and make decisions on the fly. It’s important to get this right, and that’s what we’re good at.
Is insurance cover still relevant?
Do you have life insurance and income protection? Chances are, if you’ve reached a point where you’ve nicely built some investments and reduced your debt, you may not need to pay as much insurance. Indeed, income protection insurance could well be redundant. Perhaps you need some cover, but probably not all. Now is the time to review, audit, and essentially clean up this part of life admin so you can start fresh and pay lean.
Do you intend on staying where you are, or do you perhaps have over 60s retirement homes on your mind? This is a heavy question; we understand it doesn’t just include finance. Heartstrings and family memories are tied up in homes, and making a decision one way or the other is often very confronting. We’re very respectful of the sensitivities involved, but we are here to provide you with an impartial sounding board that only has your best interests in mind. If you’re having real difficulty dealing with this decision, or you simply don’t know which way is best for you financially, we’re here to help.
How is your bank account performing?
How long has it been since you’ve audited your bank account and the fees you pay? Are you confident you have the best savings account for over 60s? This is low-hanging fruit, sure, but it can make a monthly difference if some research results in savings here and there. We want you to maximise your wealth, not your bank’s wealth!
Do you have an estate plan?
We know estate planning advice is not the most enjoyable topic to discuss, but it’s important. You’ve spent probably more than four decades creating wealth, so make sure you allocate it accordingly in the event of your death. Our clients get a lot of peace of mind knowing that their loved ones will be looked after when they are gone.
More importantly, arrangements have been made as per the client’s wishes, not someone else wielding influence after the client’s passing. This includes who you nominate for your Power of Attorney. Now is the time to ensure everything is up to date and in line with your wishes. For a sensitive, practical estate planning advisor, speak to our team.
We hope this has helped to answer some of your questions or concerns regarding how to prepare for retirement in your 60s. That said, come and visit our team and start working with the very best retirement planner for you. Ensure you benefit fully from all these decades of hard work. Make every year count - come and see us (or let’s arrange a meeting online or somewhere else that works for you) for a no-obligation, no-cost catch-up.