Don’t stress, enjoy your retirement

After working with retirees these past 27 years, I have gained a good insight into their lifestyles and financial needs.

I’d like to share with you some key observations I’ve noted from across that period. We read in the media about the huge amounts of money you supposedly need at retirement. We spend most of our lives working towards retirement, saving and putting away as much as we can to get there. Even with a lifetime of savings, investments and super, we worry. I’ve come to the view the media can be dramatic and overstate your needs!

You typically spend more per year from 60-75 years old than you do from 75-90. Spreadsheets and journalists rarely take this into account. As you age, you tend to spend less on eating out, lifestyle purchases and holidays, with more expenses directed toward health care and assisted living.

There are times when I have to encourage clients to enjoy their wealth. To take that holiday they’ve dreamed about, and then take another! Over time you can lose your passion for travel, pampering and adventure, or worse still, your ability to do so. A lot of people don’t factor in the prospect of receiving a Centrelink age pension to supplement your income as your wealth decreases. A home owner couple can have another $830,000 in assets before they lose the age pension.

The age pension is a wonderful safety net to supplement your financial position. A couple with a home and about $500,000 in investments can currently receive an age pension of close to $1,000 per fortnight ($26,000 per annum).

Sixty- to 70-year-olds often have one or both parents alive. While we’d love our parents to be around forever; the reality is that at some point you may receive an inheritance that helps your financial position. I have found that money gives you choices. The more you have, the wider your choices, and the less you have, the narrower your financial options tend to be. Either way, clients tend to work within their means and rarely waste their money.

Like many of you, I am now enjoying my own retirement and it fills me with great satisfaction that Muirfield Financial Services continues to deliver our clients excellent advice via our Managing Partner Melinda and my two sons Andrew and Matt.

My final and most important observation is that seeking advice from a qualified professional is invaluable when considering your retirement needs.

For more information on Muirfield Financial Services, phone 5224 2700, head to muirfieldfs.com.au or visit the team at 1/9 Bristol Road, Torquay.

Hayden Torney is a partner at Muirfield Financial Services.

The information contained in this article is general. Consider if the information is appropriate to you and seek professional advice if needed.