Study, Work, Retire - When Retirement Doesn't Go To Plan - A Finance Discussion
Updated: Mar 13
© Danielle Robertson Consulting Pty Ltd t/as DR Care Solutions
Most people dream of the day when they can hang up their work boots and enjoy their golden years. Gone are the days when the sturdy pension becomes your income after retirement.
Nowadays, people are relying on their superannuation as their nest egg. The expectation is that when the time comes, after working 45 odd years there will be enough cash flow to provide for the remaining golden years. Moving away from the normal ‘9 – 5’ role to the golden years of relaxation, travel and freedom can bring with it some issues. What most people don't factor in is the increasing cost of living and their ‘new’ lifestyle; their cash is tied up in assets; and the regulation surrounding superannuation access and superannuation use; in addition to health care costs and actual care costs.
When the time comes to retire, it's not as easy to access your own money as you think it is. Cash can be tided up in the equity of your property or awaiting processing from your superannuation company. This is something that needs to be factored in when planning for retirement and consideration as to what sort of cash flow you require for day-to-day living. Your financial situation should support easy access to cash when it is needed.
Myth: The pension will be enough to provide for my daily needs.
Truth: The pension, as a single source of income for a single person puts you under the poverty line.
Myth: My superannuation will be there when I need it as I retire
Truth: There are age restrictions, access restrictions and requirements to be met before you can access your money.
Planning for your retirement is crucial. Working with qualified experts such as Financial Planners, Advisers and Accountants is critical in understanding your current situation and projecting what your finances will look like in the future. DRC Care Solutions work with Financial Planners, Advisers and their clients to plan their care needs into the future taking into account health issues, functional deterioration due to ageing and personal lifestyle preferences. Time after time I find that clients are surprised by their financial health in retirement. Plan ahead and work with your Adviser. So many people have a lack of planning around what they need to manage their lifestyle and care needs as they age. The simple plan of study, work, retire isn’t so simple and very rarely does it go to plan.
You don't know, what you don't know. You can learn from experts who have helped others through the process and avoid the surprises. Those who don't plan, plan to fail. So start planning.
For more information, contact Danielle Robertson, DR Care Solutions.
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