Retirement Planning

How much do you need to retire?

Saving for retirement can help you prepare financially for the future. Industry figures show that individuals and couples around age 65 who are looking to retire today need an annual budget of $43,317 and $60,977 respectively to fund a comfortable lifestyle.

These figures are helpful when thinking of retirement planning strategies. Think about how you want to live your life in retirement and add up any potential income sources you may have to support yourself. This could include things such as a superannuation fund, government entitlements, investments, savings or an expected inheritance.

Rich River Wealth will work with you to review your retirement planning and how to maximise your income in retirement.

What our clients say

“Michael has given us very good advice in self managed super funds, to set us up for our retirement. He explains things in terms we understand. We are very pleased with all the help he has given us.”

Toni & Keith (56 - 65 years old)

“Michael is a likeable person and has made himself available when required. He has always provided up to date documentation for our meetings and understands our financial position well, he also offers suggestions to improve our situation appropriately.”

Sue (65+ years old)

Case Study – Retirement Planning & Centrelink Strategies

A 65 year old couple approached us to help with their upcoming retirement. Although they had a good amount of assets, because they had much of their investments in term deposits, we explained the 0.5% interest rate wouldn’t be enough to cover their goal of having $45,000 p.a. to live off each year.

Their money was projected to run out at age 75, and from that point on they would be relying on Centrelink with only $36,000 p.a. to live off each year.

After discussing their options, it was agreed to increase the risk of their assets slightly, in order to get a better return than the existing 0.5% interest on their term deposits. By increasing the returns to 1.5% income per annum, we were able to project that they would meet their goal of having $45,000 p.a. to live off until age 90 (an extra 15 years of their desired income).

The Centrelink strategies involved renovating their kitchen which was well overdue and investing $27,000 into Funeral Bonds, which improved their Centrelink Age Pension entitlements by $81 per fortnight or $2,106 p.a. This represents an almost risk-free rate of return of 7.8% on their money.

HOW WE HELPED

  • Review of retirement income

  • Review of investment options

  • Centrelink strategies

Here are a few ways to maximise your retirement no matter if you’re in retirement or 5 – 50 years away from it!

Here we look at how you can maximise your income in retirement, whether you’re:

  • a long way off retirement
  • close to retirement
  • already retired

Retirement still more than 10 years away

Retirement can seem irrelevant when you’re in your 30s or 40s. There are so many other things you can do with your money – go overseas, buy a house, raise a family, or just have fun.

However, according to research by the Investment and Financial Services Association (IFSA)1, the Age Pension won’t be nearly enough to fund the lifestyle we’d like when we’re no longer working. So the best thing to do is to start saving now.

Common questions to consider

  • How much do I need to retire on?
  • What is the best way of funding my retirement?
  • Is my superannuation enough to fund my retirement?
  • What is salary sacrifice?
  • How much should I be contributing now for a comfortable retirement?
  • Why are women recommended to make higher extra super contributions than men?
  • My super is sitting in a few different funds. Is it worth moving it?

How Rich River Wealth can help:

  • Conduct a complete review of your financial situation

  • Recommend strategies to meet your retirement lifestyle goals.

  • Work with you to develop a new budget and investment plan to achieve your short-term and long term goals

  • Review and recommend wealth protection plans

  • Help you create or update your will

Retiring within the next 5 – 10 years

The combined effect of earlier retirement and living longer means that many Australians will spend more than a quarter of their life in retirement. While this sounds like good news, it does emphasise the importance of planning carefully – and well in advance – for your retirement.

Common questions to consider

Some questions you may wish to consider include:

  • How much do I need to retire on?
  • When can I access my super?
  • What are my options when I retire?
  • Will I pay tax on my super if I take a lump sum?
  • Am I eligible for the Age Pension?
  • How does the Income and asset tests affect eligibility for the Age Pension?
  • What are the different types of income streams?

How Rich River Wealth can help:

  • Establish how much you need and work out when you can retire based on your plans.

  • Establish a plan to accumulate enough retirement savings within your timeframe.

  • Review and recommend retirement income products so you can manage your money in retirement

  • Make sure you can maximise any entitlements to social security benefits.

  • Make sure you are not under insured.

  • Help you create or update your will

Already retired

Have you reached your retirement age yet you feel you’re not yet ready to give up work altogether? If you’re eligible for the Age Pension, the government offers incentives for working people to defer claiming it.

On the other hand, if you’ve independently funded your retirement, you may benefit from keeping track of, or restructuring, your finances so you can maximise any government entitlement.

Common questions to consider

Some questions you may wish to consider include:

  • I’ve already retired. Isn’t it just about living off what I’ve got now?
  • I have been retired for two years. Is it too late to change my financial arrangements?
  • What is the Pension Bonus Scheme?
  • What are the eligibility requirements for the Pension Bonus Scheme?
  • How much is the Pension Bonus Scheme and when is it paid?
  • Apart from social security benefits, are we eligible for anything else now we’ve retired?
  • Now we’ve retired should we move house?
  • How long will my money last?

How Rich River Wealth can help:

  • Monitor your investments and retirement income.

  • Provide regular updates about social security changes that might affect you.

  • Review and recommend retirement income products so you can manage your money in retirement

  • Help you create or update your will

Rich River Wealth – Echuca Financial Planner

Contact Rich River Wealth today to book a chat and get you on the right track to grow your wealth!

  • (03) 5412 6060
Book a chat

JOIN OUR FREE WEALTH KNOWLEDGE GROUP TODAY!

Once you join you will receive regular wealth tips and options by our Senior Wealth Adviser to help you grow your wealth.