Do you have a plan for retirement?  Now I don’t necessarily mean what age you’re going to retire at, if indeed that is your plan.

I’m talking about what you want to do when you retire from working full time?

For those who have read my articles and blogs or watched my videos in the past you’ll know that a common theme we talk about is “knowing your financial freedom number” we suggest how you obtain that is by listing down what you want to be doing in retirement.

Ask yourself the question: Is retirement tending the veggie patch, looking after the grandkids, playing more golf or bowls, taking those art classes, travelling to each of the points where 2 oceans meet around the world, driving Route 66 in a convertible mustang, ticking off all the possible cruises you can go on, or all of the above?

Whatever it is, it needs to be important enough to you, to ensure your plans for saving and investing are a priority to get you to that point where you can tick off the bucket list items.  We really encourage our clients to take the time to consider this from as early as they can, to ensure that we are able to put the right plan in place that works for them.

Once you have decided on what you want to do, when you can move into that phase where you are no longer working because you want to, rather than you have to, at that point it’s then about how much money you will need to tick off the bucket list items, plus how much will you need to run the household.

Many of our clients come to us with the idea that they won’t need as much to live in retirement as they do when they are working, however what we’ve found, especially in the early years of retirement is that they do, in fact depending upon the bucket list, sometimes it’s more!  So it’s best to ensure that you separate the “living” part of your income you will need, from the bucket list and travel income you will need.  That way you will know it will last as long as you need it to.

The next step is to plan out with your adviser how much you will need as a lump sum at retirement to be able to generate both the “living” income and the “bucket list & travel” income and do this early – the best time to start is the present, today, not tomorrow!  Once you have that, then you need a plan to get there.  How much do you need to invest each month to ensure you will end up with the financial freedom number that will allow you to retire and do the things you want to do.  What to invest into really comes down to how much risk you need to take on – do you have such a big goal that you need to invest more into growth assets, or have you been saving for quite some time and are comfortable with the path you are going down and as a result can have a nice balance of both growth and income producing assets.  And finally whether to invest inside or outside superannuation, or a mix, this will depend upon many factors.  The right plan will cover all of these areas.

What you need to concentrate on is putting that plan in place, setting the bucket list up and ensuring you are checking in regularly with your adviser to know that you are on track to achieving your goals.

Remember once you retire, you’re still investing for the rest of your life, which may be anywhere upwards of 30 years.

So let me finish by asking you this: do you have the right plan in place, does it work for you, does it need a re-work, and will be the right one once you reach that financial freedom number to allow you to actively live the life you want to live.

Want to get started? Head here and let’s chat about how we can help.

Jenny Brown

For the majority of us leaving our office desks forever is something we can only imagine about as it’s so far away.  For the luckier ones that are much closer to retirement this can be a time of excitement and relaxation.  Spending our days at the golf course or with our community groups, families, friends and grand-kids all day every day sounds like heaven on earth.  The transition from full time work to full time play however may become unbearable and is sometimes full of trepidation.  Here are 5 facts about retirement that you should be looking at before retiring.

1. One of the first things retirees discover about retirement is that they have too much time on their hands with nothing to do. Playing a round of golf with mates, or enjoying a drink at the bar will only fill up a certain amount of time in the day and you can’t go doing the same thing day after day.  Couples and singles alike will quickly become very unhappy once they run out of ideas on what to do with their time.  Having ideas in your head on what to do in retirement is one thing; however actually doing them is another.  We often hear clients who have a weekly plan on what they want to do are those who enjoy it most.  You will never be as busy as you were pre-retirement so it’s important to map out ongoing hobbies, part time work and social events before embarking on retirement.  That way you might be one of the clients who say to us they are so busy, they don’t know how they had the time to work!
2. Retired husband syndrome – Many couples get very excited about retiring together, travelling the world together and spending intensive time together. If this is you then consider the fact that you and your other half may have been together for the past 30 years working full time.  Aside from weekends and holidays, you never have to see each other for more than a couple of hours in the morning and night.  Now all of a sudden you see each other 24 / 7 and may even start to discover that you can’t stand being together for a prolonged period of time.  Each of you having your own hobbies, goals and friends will ensure you don’t spend intensive time together.  As my mother said when my father retired, “I married you for better or worse, but not for lunch”.  In other words, she wanted to ensure he also had his routine and didn’t interfere in hers.
3. Not having enough money to fund retirement – Once retired you might have the goal to travel, see the world and complete your bucket list, unfortunately you might not have the funds to do so. Travelling can become very costly.  A single international trip can set you back many thousands of dollars.  By the time your second trip comes around you may find that you don’t have enough funds anymore, so eating out may be out of the question and this year you won’t be able to travel overseas to see your grandchildren.  Having a good financial planner early on can prepare you and set realistic goals for your retirement and help you build your super to achieve them.  This way at least you have a more clear expectation of what you can afford in retirement and prevent any nasty surprises once you’ve retired.
4. Entitlement to social security – At present, the Australian pension age is age 65, which is subject to rules, regulations and changes in the future. During retirement some retirees aren’t aware of what social security benefits they’re entitled to.  Even if you are receiving funds from your Superannuation benefits, you may still be entitled to government age pension (subject to income and asset tests).  Having a good financial adviser will ensure you’re kept up to date regarding any social security payments you’re entitled to.
5. Losing your identity from not being at work – For those of us who are passionate about our profession, this becomes our identity. Anytime your friends or family think of Engineer, Accountant or Doctor, they think of you.  So it’s no surprise that once you retire you may feel like you’ve lost your identity, which may lead to discontent and even depression.  Without the daily interaction of your work colleagues, your mental and even physical health may start to deteriorate.  Retirees who are not very active tend to decline rather quickly mentally and physically.  Joining up to the local gym, taking up classes and just continuing to meet new people will have a longer lasting affect for you.  After all, we all need something exciting to look forward to in the future.

If you are one of the lucky ones thinking about retirement, make sure you start to plan early and talk to the team at JBS so there are no nasty surprises.

For me a Bucket List is a critical factor in any Retirement Plan. Writing down your “bucket list” no matter how crazy, significantly increases the likelihood of Retiring Right.

Over the past few months we have had some of our clients send photos of their adventures around the world as they enjoy their retirement dreams.

We have had Paul drive across America with a long time school friend.

Densie & David go skiing in Whistler and visit Downton Abbey.

Peter & Debbie say goodbye to their employers and book trips to Ski the French Alps, visit family in the UK and even enrol to go back studying in the New Year on their return.

Phil & Linda who rented out their house for 12 months and have no permanent place of abode as they initially travelled around Australia before heading to Asia; eventually heading to Europe while the World Cup is on in 2018.

These are just a snippet of the numerous clients that we have all around the world living out their dreams and ticking off their bucket list.

It is fantastic to be able to share in our client’s success, but these results didn’t just happen overnight. In every case our clients have been planning and working towards these goals for years and in some cases tens of years.

Over the years I have helped hundreds of clients Retire Right and in my experience the clients who have written down their bucket list and regularly referred back to it; are kept accountable and tracked their progress towards their goals, are the ones who you see in these photos.

Early on in my own career a wise Retire Right client once said to me, I’m an overnight success after 20 years, so learn from him and START NOW.

We are approaching a great time of the year to complete some reflection and planning and I challenge you to come up with your own Bucket List. Be bold, aim high and start now as the earlier that you start, the more likely your dreams are to achieve.

For the record, the number one thing on my bucket list is to go the US Masters with my son and my dad. My wife and daughters are welcome, but my daughters are a little young to tell if they will like golf and I already know my wife’s answer….

What I wish for you is the opportunity to Retire Right so start the conversation.

– Warren Hanna –