The 6 Ages of Wealth (Part 5 – In your 60s)
So you’ve hit 60. Who’s excited?? Retirement is literally moments away – although receding steadily for later retirees as the federal government pushes the pension age. But many people have taken the steps to retirement. Now for the expected freak-out as you question if you have enough money for your future.
The 60s – early 60s in particular, are a time for lots of questions. Experts say you need $1 million to retire and you have a quarter of that – how will you survive? Should you continue working longer? Will your employer allow you to stay longer? Do you want to stay longer? Will you qualify for the age pension? What do you do if you don’t?
So, on top of all these questions there is the fear. Fear of leaving the workforce, it is after all, what you’ve done your whole life. It’s daunting to finish this chapter of your life and for many, can leave a hole in their lives and identities. This leads to yet another question, what am I going to do now? If you haven’t planned properly, you can quickly get bored, lonely or even start to feel like a burden to others. Also, now is when your children are having their own children and are confronted with how expensive and difficult to find child care is, so quickly turn to you as “free babysitters who have nothing else to do”.
All in all as exciting as this time is, it can also be daunting and exhausting. Medical costs will be on the rise and if you are not aware of the discounts available to you, you could be paying infinitely more than you need to. A good planner can fill you in on all the senior cards and discounts you are entitled to and help you to evaluate your goals and navigate
Here are 6 tips for your 60s:
- See your Financial Adviser – You need to check in again to see exactly when you can retire ad how long your money will last. Don’t think 65 is the magic age.
- Set a realistic retirement date – If you don’t want to retire, don’t. Just make sure you have enough money, as getting a job when you’re 75 might be tough.
- Start to think what you’ll do in retirement – Get a hobby, buy an old car to restore, plan holidays, book golf lessons. Just don’t try to do everything in the first month.
- Don’t forget retirement is 20 years plus – You shouldn’t automatically take all your money out of super once you retire, or put it all into cash. Keep pace with inflation.
- Money in pension accounts converted from Super – once you are over 60 is held tax-free. This means there’s no tax on income earned in the fund or from growth in value.
- There is a misconception – that, as you’ve paid taxes all your working life you will get an age pension. Not in Australia!
Sound Life Financial Services 98411688
Source: Taken from an article written by Teresa Ooi from the magazine “The really simple guide to Money” by Big Splash media Pty Ltd
The information contained in this blog is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial planner.
Jane Looker, Thelma Jaekel and Sound Life & Superannuation Agencies Pty Ltd t/as Sound Life Financial Services are Authorised Representatives of Synchron AFS Licence No. 243313
