Retirement Planning for Couples with an Age Gap: 5 Conversations You Need to Have

Retirement Planning for Couples with an Age Gap: 5 Conversations You Need to Have

Updated on Budgeting, Finance, Retirement

Planning for retirement can be challenging enough, but when there’s a significant age difference between partners, it adds another layer of complexity.  Different life stages often mean differing priorities, timelines, energy levels and financial needs. But with thoughtful planning and open communication, it’s possible to build a retirement that is secure and fulfilling for both partners.  By having honest and meaningful conversations, you can uncover each other’s hopes, concerns, and goals, creating a retirement plan that feels balanced and fulfilling for both partners. The following prompts are designed to spark deeper, more meaningful discussions, helping you align your visions for the future and tackle potential challenges head-on. 1. What Does a Happy Retirement Look Like for Each of Us? Do you see yourself travelling the world, pursuing hobbies, or simply enjoying quiet days at home? Take some time to write down your individual goals, dreams, and non-negotiables. Share your lists, identify where they align, and discuss how to balance differing aspirations. The goal is to create a shared vision that respects and supports both partners’ priorities. 2. When Should Each of Us Retire? If one partner is ready to retire but the other is still building their career, it’s essential to plan for a phased approach. Discuss your ideal retirement dates and explore potential working arrangements. Can the older partner delay retirement slightly? Does the younger partner have long service leave entitlements or options for flexible or remote work? By planning your timelines together, you can find creative solutions to balance individual goals while making the most of the time you’ll share in retirement. 3. How Will We Stay Connected While at Different Life Stages? When one partner retires while the other continues working, it can disrupt routines, create imbalances, and make maintaining a connection challenging.  Talk about how you’ll maintain your sense of partnership and shared purpose during this transition. Discuss activities you both enjoy and schedule regular time to share them. By prioritising connection and shared goals, you can maintain a sense of partnership and navigate this transition together. 4. How Do We Balance Our Different Energy and Mobility Levels? An age gap often means one partner has more energy or mobility than the other, which can impact your activities and lifestyle choices. Talk about how this difference will shape your travel plans, daily routines, and shared activities as you age. Should you prioritise physically demanding activities, like overseas travel, now? Would investing in a home designed for aging in place benefit you both in the long run? By addressing these concerns early, you can create a lifestyle that ensures you enjoy your time together, regardless of age or mobility changes. 5. What Are Our Greatest Fears About Retirement? Do you worry about financial insecurity, health challenges, or the possibility of loneliness in retirement? Take some time to reflect on and write down your individual fears or concerns. Share them with your partner and discuss how these worries can be addressed through planning or support. The goal is to foster empathy and understanding while building a retirement plan that alleviates these concerns for both of you. … Retirement planning isn’t just about numbers and timelines—it’s about understanding and aligning your dreams, priorities, and concerns as a couple.  These five conversation prompts are a starting point to help you navigate the unique challenges of retirement planning when there’s an age gap. By taking the time to discuss your needs openly, you can begin putting in place a plan that optimises your timelines, finances, and lifestyle choices. If you’re not sure where to start, a financial adviser can help you develop a strategy tailored to your unique circumstances, ensuring a secure and fulfilling retirement. The information provided in this article is general in nature only and does not constitute personal financial advice.  

Is FORO ruining your retirement?

Is FORO ruining your retirement?

Updated on Education, Finance, Retirement

FORO – the fear of running out. I’d never heard the expression until I met Mark and Susan. Of course I’d heard of FOMO, the fear of missing out, but never FORO. As the newly-retired couple sat across from me, explaining how they were so afraid of running out of savings that they were not enjoying the retirement they’d worked so diligently for, I grasped the meaning of FORO immediately. They rarely went out for dinner, bought anything new or – heaven forbid – took a holiday. After a lifetime of saving hard, paying off a mortgage and raising a family, Mark and Susan were naturally frugal, but FORO had left them feeling vulnerable and afraid of the future. After two decades as a financial planner, I’d come across this situation before, although, it is unfortunately becoming more common. Mark and Susan had never sought financial advice before and weren’t sure what I could do to help, but came to see me because they didn’t know where else to turn. When I assured them that there was plenty I could do to help, they visibly relaxed. I explained that the key to overcoming FORO was having a well-structured financial plan. After I outlined my 5-step strategy, they were eager to proceed. The steps we took were as follows: 1. Conduct a financial assessment By thoroughly assessing their current financial position (superannuation, savings, investment and social security entitlement), I formulated a picture of where they were at, and their future cash flow projections.  2. Establish a sensible strategy Working together, we identified essential living expenses and discretionary expenses, then allocated funding that balanced financial security with lifestyle goals. Next, we determined a retirement investment portfolio with a sensible withdrawal rate to support their retirement plans. 3. Create an emergency buffer In my experience, the what if factor is a major concern for retirees. What if…I become ill? What if…the fridge breaks down? What if…the car dies? These questions, and more, play on peoples’ minds to the point where they fall back into a FORO mind set. To ease their anxiety, I recommended they include a contingency fund in their portfolio to ensure that unplanned expenses were covered. That way, if something unexpected pops up, their retirement lifestyle strategy remains on track. 4. Enjoy the early years FORO had been holding Mark and Susan back for too long. I explained that hobbies, travel and social activities are crucial to mental well-being. So once we had established a responsible financial plan, I showed them how they could afford to spend, sensibly, and enjoy themselves. I especially encouraged them to make the most of their early retirement years, while they were fit and energetic. 5. Schedule regular reviews The final step in the process was my ongoing commitment to Mark and Susan. Retirement planning is not a set-and-forget strategy; it’s a journey through every stage of life – physical retirement being one of those stages. By regularly reviewing their financial position, I helped Mark and Susan monitor their spending and investment performance, and made portfolio adjustments that kept them in control of their retirement plan. Last week I bumped into the couple on the street. They were glowing with excitement and told me they’d just booked a Pacific cruise. Of course, I was thrilled for them – it was a big tick off the bucket list! But when Susan said they’d turned FORO into FOMO and were living their best lives, well, I’ll just say it was one of those moments when I absolutely love my job! The information provided in this article is general in nature only and does not constitute personal financial advice.  

What does a good financial adviser do?

What does a good financial adviser do?

Updated on Aged Care, Budgeting, Economy, Finance, Insurance, Investing, Retirement, Superannuation

Some people may think that a financial adviser’s role is to forecast the direction of the share market from month to month and invest clients’ money accordingly. This is not the reality, of course. Investments are only one small part of what your financial adviser can provide for you. Consider for a moment the number of websites, newsprint and broadcast time dedicated to financial topics these days. Australians seem to have an insatiable appetite for understanding finance. Whether it’s the latest share market activity, economic news or the constantly changing tax and superannuation rules, a licenced financial adviser can help answer your burning questions and save you the hassle of finding it yourself. Usually, the benefit you receive from a financial adviser can be spelt out in dollar terms. It might be the income tax you have saved by re-structuring your salary, or a new concession from the Australian Tax Office (ATO) or Centrelink that you didn’t know you could get. The finance section of your newspaper or online magazine probably includes a regular “advice” or “Q & A” column. By law, these columns must warn readers that the advice does not consider your personal situation or needs, and you should consider its appropriateness before acting. In setting your financial strategy, a good financial adviser will take the time to get to know you and your circumstances. This means that everything recommended to you—the investment portfolio, super contribution strategies, savings plans and insurance advice—is tailored to your personal needs, goals, and tolerance to risk. As the years go by, your financial strategies will need adjusting due to changes in the broader environment or something closer to home. Whatever the case, your adviser is there to help you make the most of the good times and the bad. And a regular financial review doesn’t always mean major changes, but at least you’ll know that you’re on the right track – and not having to do it alone. Quality, knowledgeable advice is critical, and wherever you are on your financial path, now is always the best time to talk to us.   The information provided in this article is general in nature only and does not constitute personal financial advice.

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