At this stage, it is assumed you are a home owner with less responsibility of young children and a home loan which has been almost paid off. You would be at the peak of your career in a senior management role with a good income.
Now is the time to start looking at financial planning retirement options and to do so in a conserva-tive manner as there is little time to lose money and recover in full what has been lost.
Assuming you retire at 65, the life expectancy rate is favorable to assume you will live until the age of 85 to 90. This means living in retirement for at least 20 to 30 years. In order to sustain a lifestyle, you need money coming in from an investment in addition to the government pension.
That’s where superannuation comes in. Super has a good tax structure to take advantage of as you can access your money and receive tax advantages. You can pay off your existing home loan with your super money or put back into your super to save on the marginal tax rate.
You can even start to look after your own parents by ensuring estate planning is done properly and all loved ones are provided for financially.
You can review current investments at this stage – if you have no assets, only cash, you will need to look at tax effective investment strategies for the future.
The number one thing people worry about when they retire is income, so you need to look at meth-ods of supplementing cash flow by smart investing, aside from super and your pension.