Retirement should be a time of relaxation and fulfilment, free from financial worries. At Saint Financial Planning, we understand that planning for retirement can be overwhelming. That’s why we’re here to guide you every step of the way, ensuring you have the security and peace of mind to enjoy the retirement you’ve always dreamed of.

Lets keep it casual!

Book a chat and Get your questions answered. THere is no commitment from you and no pressure from me.

Backed by Australia’s largest non-institutional financial group, WT Financial, you can be assured that we have the resources and skills to give you the secure financial outcomes you seek.

Want to talk about if and how we can help you? Book a free 30 minute chat with me through the link below

Some Questions that get asked a lot!

How much will I need in retirement?

This question is akin to asking, "How long is a piece of string?" Everyone's needs and vision for retirement are unique. What might be an ideal retirement for one person could be entirely different for someone else.

The amount of money you'll need to maintain your current lifestyle in retirement depends on several factors, including your current expenses, desired retirement lifestyle, and how long you expect to be in retirement (that’s a real tough one to answer). A common rule of thumb is to aim for 70-80% of your pre-retirement income to cover your expenses. However, this can vary widely based on individual circumstances, such as healthcare needs, travel plans, and other personal goals. To get a more accurate estimate, consider creating a detailed retirement budget that includes both your essential and discretionary spending. The other option of coarse, is to get in contact and we can work this out with you to ensure you have this covered.

Will My Savings and Investments Last Through My Retirement Years? 

Whether your savings and investments will last throughout your retirement depends on several key factors:

1.       Withdrawal Rate: The rate at which you withdraw funds from your retirement savings will significantly impact how long your money lasts. This will be required to draw a minimum amount each year, but this may need adjustment based on your personal situation.

2.      Investment Returns: The performance of your investments will affect your retirement funds. It's important to have a diversified portfolio that balances growth with safety, especially as you age.

3.      Longevity: The length of your retirement, which depends on your life expectancy, plays a crucial role. Planning for a longer retirement (20-30 years or more) ensures you don't outlive your savings.

4.     Inflation: Inflation reduces the purchasing power of your money over time. Your retirement plan should account for the rising cost of living to ensure your savings maintain their value.

5.      Unexpected Expenses: Consider potential unexpected expenses, such as healthcare costs or emergencies, which can impact your savings. Having an emergency fund or appropriate insurance can help protect your financial security.

As a very loose guide, if you want to draw an income of $80,000 (after tax) you would want to work backwards on a 5% return ($80,000 / 0.05) this will give you a lump sum of $1,600,000. This should give you a comfortable base that would cover inflation and the need for government support (age pension) however again, this will all depend on the 5 things above and can vary outrageously from person to person.

One of the greatest benefits of having a conversation and going through our process is that you'll gain clarity on how long your money will last and what you can comfortably withdraw to support your retirement.

At what age can I retire?

In short, any age you want! If you have the means to cover your living expenses, you can kiss your working life goodbye and say hello to retirement.  

However, you can generally retire and access your superannuation starting at age 60, if you've met a "condition of release" like retiring from work. However, the Age Pension eligibility age is currently 67. Your ideal retirement age will depend on your financial situation, lifestyle goals, and when you'd like to start enjoying your retirement. 

Should I Adjust My Investment Strategy when I retire?

Yes. No. Maybe? Here are a few key considerations:

1.       Risk Tolerance: As you retire, your ability to recover from significant market downturns diminishes, so it might be wise to reduce exposure to high-risk investments like shares and increase allocations to more stable assets like cash, Term deposits, bonds or dividend-paying shares. As a general rule, it’s a good idea to have at least a few years of income kept in investments that aren’t going to fluctuate so that you are not drawing on your investments if the market value drops.

2.      Income Needs: Your portfolio should be adjusted to generate consistent income to support your living expenses in retirement. This may involve shifting towards investments that provide reliable income streams.

3.      Liquidity: Ensure that a portion of your investments is easily accessible for unexpected expenses or short-term needs. This might involve holding more cash.

4.     Tax Efficiency: Tax implications become increasingly important in retirement. Strategies like using tax-advantaged accounts, managing capital gains, and optimizing the timing of withdrawals can help minimise tax liabilities.

5.      Longevity Risk: Ensure your strategy accounts for the possibility of living longer than expected. This might mean maintaining some growth-oriented investments to keep pace with inflation over time. If you put all your money in cash, you are effectively guaranteed a negative return as each year your money will lost it’s buying power.

6.      Estate Planning: Your investment strategy should align with your estate planning goals, ensuring that your assets are distributed according to your wishes.

Before making any changes, it's advisable to consult with a professional who can help tailor these strategies to your specific situation and retirement goals.