Planning to retire

These days 50 and over is not regarded as ‘old’.  In fact, you might even be looking forward to reaching the half-century mark.

You might not be retiring just yet, but it’s hard not to get excited about cutting back on work, seeing the kids leave home and finally getting to enjoy that extended holiday across Australia or around the world, or just simply doing what you want to do.

Some people in their fifties will have achieved financial independence and will be able to retire comfortably, but most of us will need to use the coming decade to lay more secure financial foundations.

Here are some key steps.

Keep building the nest egg

Roslyn and Peter’s children have for the most part become independent, their mortgage is closer to being paid off and their earnings capacity peaks, so it may be possible to significantly increase their savings.

Over 55? Time to boost your retirement savings

Phase in retirement

Bob and Ann are thinking about retirement and decide to utilise the ‘Transition to Retirement’ rules. Over 55s who are still working can start drawing a superannuation pension. This may allow for reduced working hours, without reduced income. It can also fund greater salary sacrifice contributions, to achieve a bigger pool of funds at retirement.

A time of transition: retirement planning