Think about the income you need to support your future lifestyle.
A great approach to retirement is thinking about the income you need to support the lifestyle you want to maintain and how you’ll generate that income. But don’t forget to think about how to protect the income you generate from risks like inflation.
Investing for retirement isn’t just about choosing an investment that will increase in value over time. It’s also about making sure your investment pays you a regular income so you can enjoy your retirement.
So how do we do it?
Generating the right income and protecting that income stream – is one of the most important parts of retirement planning. Strategies For Life works with you to tailor a plan to maximise and protect your income.
Client Scenario
Realising just how much income is needed in retirement
John was 55 and wanted to retire in a few years. After retiring, he planned to buy a boat and travel overseas for at least 6 months.
John thought he’d need about $70,000 a year in retirement income.
Our Solution
After discussing John’s financial goals and current financial position, John realised he didn’t yet have enough money to fund the retirement he was hoping for.
To help John achieve his retirement goals, Strategies For Life worked through the pros and cons of different strategies, including working longer, increasing super contributions and downsizing to a smaller property. We also explained how John’s retirement income would be reduced if he bought a boat and went on a big trip.
How can John generate an income for retirement?
Convert his super into a tax-effective income: a transition to retirement strategy can give John a tax-effective income via a pension to replace his reduced salary if he plans to scale back working hours. Once retired, an account-based pension will deliver a tax-effective income to meet John’s living expenses.
After receiving this advice, John decided he needed to rethink the length of his trip, stick to a budget and increase his super contributions. John was glad he got financial advice as he now has a realistic plan for his retirement and the strategy in place to achieve it.
Strategies For Life can help design the most suitable strategy that suits your circumstances to ensure your goals are reached within your timeframe.