30 Jan 2025
Here’s how an adviser can help close the loop between your financial situation and your retirement goals.
If you’re about to make the leap from accumulating capital in work to eating your capital in retirement, your success could depend on quality financial advice. Here’s why...
The Australian superannuation system has built up a huge community chest of capital. As the system gets closer to maturity, the focus shifts to ensuring that capital delivers more choices and an emotionally rich retirement. The key to success is quality advice.
Growing need for advice
What you want in retirement depends on multiple variables. Your health and that of your partner. The age of your children – and your parents – and the shape of those relationships. Longer lifespans and social change mean today’s retirees are more frequently dealing across generations and often with blended families.
So, while some see retirement as a long period of rest, many will become carers up or down the family tree. There will be those who explore side hustles, study, and seek new jobs. While some need to get away and explore, others relish the time to live in their homes rather than just sleep there.
That’s why financial advice is a key element of the retirement landscape. There may be a time when Artificial Intelligence can help manage your financial situation by taking into account your unique needs and desires. But today, it’s your financial adviser who can close that loop.
Freeing you up to enjoy retirement
Ideally, your financial adviser will be deeply involved in your accumulation strategies by:
- Maximising your personal contributions.
- Optimising strategies like co-contributions and spouse contributions.
- Making sure your investment strategy is aligned with your needs and risk profile.
Yet it’s at retirement that the value of advice starts to really hit home.
Today, a lot of government rules in areas like Centrelink, transfer balance caps and total super balance limits are built around individual numbers.
Pockets of cash, buckets of growth
Some people will respond to a retirement income strategy built around ‘buckets’. Cash and term deposit buckets to meet short-term income needs and buckets of growth assets in account-based pension.
Every situation, retirement goals and lifestyle aspirations are different.
Current as at January 2025
As always, if you have any questions or your personal circumstances have changed please do not hesitate to contact your financial adviser.
General Advice Warning - Any advice included in this article has been prepared without taking into account your objectives, financial situation or needs. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation or needs.
