Life begins at 60: your retirement future
As Australia's senior population grows, the new 40 is now 60. Your 60th celebrations should include a toast to the start of your third age. The third age defines the beginning of an active phase of life as people transition into a later, more energetic retirement future.
If you’re in your 50s, it’s not too early to start planning for a fulfilling third age.
There are many areas to consider to ensure your third age, is your best yet.
Financing your retirement future
You’ll need to get an understanding of what is financially possible based on where you’re at right now.
Start by setting a realistic funding target for your retirement future. How much could you comfortably live on a year?
Multiply this by the number of years you’ll need to fund. Calculate the age you plan to draw your superannuation, and how long you expect to live (the average life expectancy is 82 in Australia). Throw in a best case scenario. You don’t want to run out of funding when you really need it.
Book in a financial adviser to work out effective strategies to reach your retirement funding goals. Consolidate your superannuation, review your investment strategy early.
Research Centrelink payments to understand how you might maximize entitlements to a full or part Age Pension.
Wind down from employment
Once you understand your financial future, you can turn your mind to how you’ll transition from paid work. Will you wind down working hours gradually? Like any change, retiring from what we’ve known for decades can take its toll emotionally. Easing in to your retirement future may be a healthier option.
If you’re running a business, you need to think about succession planning. If it’s a family owned business, this can be particularly challenging. It’s always a good idea to seek independent advice from a specialist in succession planning.
Build a wish list
To help you set your retirement funding goals, start building a retirement lifestyle wish list. This could include your retirement accommodation preference – you may want to sell your family home and move to a maintenance free lifestyle; your holiday plans; the location you’d like to live in – there may be people you’d like to stay close to; new interests you’d like to explore; plans to stay fit and healthy; or, buying that less practical sports car you’ve dreamed of.
Get your family on board
Bring your family on your journey so you’re all on the same page, or at least understand which page you’re on! If spending time with family is high on your wish list, have conversations with them about how you achieve this, together.
Good health is the start to a great retirement lifestyle
Put health to the top of your planning priorities. If you’re due for a full medical check, book one in today. Keep your health and fitness plan well maintained so your third age and retirement future is one to make younger generations aspire to!