I’m almost a retiree… how can I sustain my lifestyle?
Approaching retirement age is an exciting time. After years of work and family commitments, the opportunity to spend more time doing the things you enjoy is simply thrilling. However, while this can be deeply satisfying, it can also result in new and unique fears.
Retiring in our current economic state can be deeply challenging for a number of reasons: near-zero interest rates offer very little benefit to savers to generate return on safer money, and dramatically-rising health-care costs may put a huge dent in retirement income. Combine those challenges with a volatile stock market and lengthening lifespans, and you may be wondering, “Can I even afford to retire?”
MoneyLink Financial Planners are retirement strategists and specialists, and we are best placed to help you maintain or improve your financial lifestyle in retirement.
Our Top Tips for a comfortable retirement….
Even a year or two of continued full-time work can have a dramatic impact on a nest egg’s ability to be sustained for a retirement. Working a bit longer may be the greatest improvement a retiree can make to increase financial stability.
Delay Social Security Benefits
Most Australians have access to a lump sum. Australians can get access to their super at age 56 currently, but this will be rising to 60 over the next few years, if they have fully retired. The pension age, and most common retirement age is 65 1/2 but rising to 67 over the next few years.
Spending less each month allows your money to last longer. Downsizing your home, monitoring dining-out expenses, and keeping closer tabs on unnecessary purchases can go a long way toward your comfort in retirement.
Work Part-time in Retirement
Finding part-time work during retirement can dramatically reduce necessary withdrawals from retirement accounts, while keeping you active and connected with other people. For some, this is a great way to ease into retirement rather than dramatically shift from 50 hours per week to none.
Pay off Debt Before Retirement
It’s pretty simple. The less debt a retiree has, the less money in savings it takes to make payments on the debt. Working hard towards paying off credit cards, cars, and mortgages before retirement can be a powerful way to strengthen financial security.
Consider Guaranteed Income
Go for a little more security. Exchanging a risk-based investment product for a guaranteed income product could secure a lifetime of income even if markets perform poorly, or lifespan is increased.
However, a guaranteed income will probably be less if using other less guaranteed strategies to generate income.
Most retirees spend much less in their 80s and 90s than they do in their 60s. Therefore, planning to have reduced expenses later in life may allow for a nest egg to stretch much further.
Invest For a Longer Time Horizon
A successful retirement can last 30 or more years, so earmark a portion of retirement savings for higher risk investments. This may lead to higher returns and a more sustainable nest egg.
It comes down to making the right choices.
Our tips for sustaining your retirement lifestyle, and making your nest egg last longer can lead to a successful, comfortable retirement. Consider how a combination of these options will allow you to to generate more income during retirement and sustain your assets longer.
What you do with these choices will have a big influence on how you spend your retirement.
If you’re ready to enjoy a sustainable, comfortable and financially healthy retirement, contact a MoneyLink Retirement Strategist today.
MoneyLink Financial Planning Pty Ltd is an Australian Financial Services Licence Holder. No:.247360
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