There is an expression that is common amongst many “thrill seeking” younger people… “I am here for a good time, not a long time.”

However as we grow and assume more responsibilities, we realise that we can not only enjoy life, but enjoy it well into old age. Thirty years ago, a 65 year-old was an “old person.” Today, 65 year-olds boast that 65 is “the new 50” and they are probably right!

Nonetheless, living longer, healthier, more active lives introduces us to “longevity risk” – the risk of outliving our money.

With the fallout from the recent economic downturn and global financial crisis, many Australians experienced a decline in their retirement savings. In fact, recent research suggests that those within five to 10 years of retirement had, on average, deferred their retirement by 3.7 years. As people become more aware of the actual costs of living a long and satisfying retirement we will see a shift to people remaining engaged in the workforce for longer periods.

The options for people to remain in the workforce and generate additional income to support their lifestyle are numerous. Some may decide to remain working on a full-time basis, others may transition into retirement by moving from full-time to part-time work, some who have already retired may seek to re-enter the workforce, while others may look to start their own business.

For most people, superannuation remains the most tax effective way of accumulating wealth for retirement and then managing the payment of a regular income stream. Even modest amounts of superannuation, when coupled with income support payments such as the age pension, can provide retirees with sufficient income to enjoy their retirement, hopefully supplemented with some of life’s luxuries.

Planning for a successful retirement requires research, discipline and time.

Our financial planning services can prove to be a very powerful ally when preparing for retirement. The earlier we start preparing, the more likely we are to achieve the sort of lifestyle of which we have always dreamed.

This entry was posted on Tuesday, April 6th, 2010 at 3:35 pm and is filed under Financial Planning, Superannuation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.