Anyone approaching retirement knows it ain’t what it used to be. Modern retirement has gone from being a time when we stepped back into the shadows to being potentially one of the most exciting phases of our lives.
But whatever it becomes that is really up to us, and how we plan for, prepare for and live it. So, today, let’s look at what, I think, should be in your modern retirement plan.
The way we look at retirement, from a money and lifestyle perspective, is changing.Credit: Simon Letch
We’re all living longer, but most of us are still coded to picture ourselves living much shorter lives. To get our planning under way, we need to explore how long we might live first, then start to build a vision of what the years ahead of us could look like.
Smart actuaries say that today’s 50-year-olds have a good chance of living into their mid 90s, and those younger could easily get to 100 years. That says to me that we need to paint a very different picture of modern retirement in our own minds.
Once you know how long you expect to live, and of that, how long you want to spend living off more passive income streams in retirement, you should find yourself quite motivated to build your financial plan. That financial plan could have up to 11 moving parts. And I think everyone should make the effort to understand this stuff, rather than outsource it completely.
There’s building your budget for the period before you retire to nail down your cost of living, planning how much you can save. Usually people try to juggle paying down their mortgage, and trying to contribute more actively to their super as early as they can, leveraging the superannuation tax concessions available, then investing those funds appropriately to drive compound investment growth before retirement.
What a modern retirement plan should look like
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19.04.2024
Anyone approaching retirement knows it ain’t what it used to be. Modern retirement has gone from being a time when we stepped back into the shadows to being potentially one of the most exciting phases of our lives.
But whatever it becomes that is really up to us, and how we plan for, prepare for and live it. So, today, let’s look at what, I think, should be in your modern retirement plan.
The way we look at retirement, from a money........
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