Baby boomer retirement planning tips
In 2015 the youngest baby boomers will be turning 50.
It doesn’t matter if you’re a 50-year old baby boomer or a 65-year old baby boomer – it’s time to start planning for your retirement now!
Here are our top 3 baby boomer retirement planning tips:
1 Work out how much money you will need
Baby boomers can feel stress around planning for retirement because they haven’t had superannuation throughout their entire working life. And with the recent global financial crisis, some baby boomers are still feeling the after shocks to their investment portfolios.
An important part of baby boomer retirement planning is to work out how much you need to draw down to live the life you and your family want.
Working out a budget well before you retire and trialling it while you’re still earning employment income, can be a great way to test out what you’re comfortable with.
As part of this budget, make sure you include incidentals that make life more enjoyable like:
- A couple of nice bottles of wine a week
- Trips to the movies and shows, and
- Unexpected utilities bills.
Thinking that the age pension will help you out?
In the next 20 years, there are plans for the age for the pension to be lifted to 70 years of age. This plan is set to affect baby boomers who have just turned 50.
2 What lifestyle do you want?
The retirement images we’re fed by the media include grey nomads travelling around Australia, couples holidaying on river cruises and lazy afternoons having wine with friends.
But before you decide to retire, it’s important to sit down with your partner or spouse and work out what lifestyle you both want.
Consider the following:
- Where would you like to live?
- How often would you like to travel, and where?
- What medical costs and health expenses do you need to plan for?
- How much income per year do you need to maintain a comfortable lifestyle?
Going through these types of questions is challenging, but we can help you out in a complimentary meeting.
3 Do you need to retire or only semi-retire?
With the average life expectancy in Australia now around 85 years of age, if you fully retire at 65 you may have 20 years (or longer!) to support yourself without an employment income.
So before you tender your resignation and line up for your gold watch, why not consider working part-time for a few more years?
We know some people in their late 60’s and early 70’s who use their long service leave and go on an extended holiday overseas. And some employers are keen to see their most experienced workers stay in the work force on a part time basis.
Before you set your retirement plans in place, remember to seek advice. Everyone’s retirement plan needs to suit their lifestyle needs and priorities.
The advice provided in this blog is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. For our full disclaimer, please click here.