Easy Living in your 50’s 60’s 70’s
How to plan for ‘easy living’ in your 50’s 60’s and 70’s
Our 50’s 60’s and 70’s are decades which each present specific challenges for our finances and lifestyle. Here are some tips so you can focus on enjoying life.
Our 50’s: the perfect time to prepare and set up for retirement
Perhaps more than any other age, our 50’s can present a multitude of changes in our personal, family and financial lives.
- The expense burden of raising children may now be tapering off as they become more independent or leave home.
- You may finally be getting on top of your mortgage and income may be getting to its peak, with a greater proportion of discretionary funds available to spend or invest.
- Health issues may start to be a growing concern so it is time to invest in yourself, exercise regularly and stay on top of health checks.
- Inheritances may be getting passed on to you.
- You may want to scale down your work one or two days a week or take long service leave.
Among all these potential upheavals, the promise of retirement looms. Your thoughts will gradually be turning to what age you will take the step into retirement.
In your 50’s you should take a serious look at what superannuation benefits you have accumulated and work out whether boosting contributions is necessary to achieve your goals. A key factor to be aware of is reaching your ‘preservation age’. This is the age at which you can access your super.
Your 50’s are a time to revisit the mix of investments you have inside and outside super, to ensure the asset class proportions and risk profiles are appropriate for you.
In terms of dependants, if your children have left home you may want to review your life and disability insurances. While the liabilities of earlier times may be reducing, the risks of illness may be increasing, so there is still a critical need to keep insurances at a sufficient level to disaster-proof your situation.
Our 60’s: making the leap into an exciting new phase of life
The latest Australian Bureau of Statistics report on retirement ages tell us that the most popular intended age to retire is 65–69.
Retirement is when income generally switches from being earned by your labour to being earned from your super funds and investments. Your preservation age would have been reached and as long as you have met a condition of release and have officially retired you are able to access your super tax free.
You may also become eligible for the age pension in this decade of your life – currently the trigger for this is at age 65, although this may increase to age 67, depending on your date of birth. All of these aspects signal a wave of decisions that need to be made on investing your money, drawing an income from that money and how you will spend that income.
There may also be a stronger urge to downsize your home. It’s also a time when the reality of planning your estate comes into sharper focus. Deciding how your accumulated assets will be passed on to beneficiaries can be more complicated than you think, so some professional help can relieve stress in this area. This includes delegating legal and medical authority for your future care through instruments such as power of attorney and enduring guardianship.
Our 70’s: Keeping it simple and enjoyable
By the time we reach our 70’s most of us are retired. The key goal in this stage should be to enjoy life. With the right planning and advice, you will ideally have your income and investments well set and will be maximising your social security benefits so that you are, for the most part, free from financial worries.
The greatest issue affecting your lifestyle may be your health. Of course more Australians are living longer and enjoying good health later in life more than ever before, but mobility and ease of living may ultimately dictate changes in your living arrangements.
While many prefer the familiarity and independence of their own home, others will find the option of a retirement village a very attractive one. Further into our ageing, a higher level of care in a nursing home may be needed. In both of these cases there are some significant financial issues in relation to the potential sale of your home and financial arrangements for the cost of care that need to be carefully addressed.
The key to making such changes as smooth as possible is to make arrangements well in advance. There is less stress and more advantage to be gained if decisions about future care are made before such moves become a necessity. This extends to arranging your estate planning and delegation of legal and medical authority.
The secret to keeping life simple is to get the right advice on all these issues sooner rather than later so you can focus on spending time with family and friends, travel and having time to pursue your passions.
Bridges Financial Services Pty Ltd (Bridges). ABN 60 003 474 977. ASX Participant. AFSL 240837.
This is general advice only and has been prepared without taking into account your particular objectives, financial situation and needs. Before making an investment decision based on this information, you should assess your own circumstances or consult a financial planner or a registered tax agent.
Examples are illustrative only and are subject to the assumptions and qualifications disclosed.
Part of the IOOF group
Additional disclaimer for referral partners:
In referring customers to Bridges, Maleny Credit Union (MCU Ltd trading as) does not accept responsibility for any acts, omissions or advice of Bridges and its authorised representatives.