As we approach retirement, we often think of it in three phases. The first phase is often thought of as a time of transition when we move from working full-time to part-time or retire altogether. The second phase is often seen as leisure time when we can travel and enjoy our hobbies. The third and final phase is often thought of as a time when we approach our final years and we become more dependent on others.
The Realities of Retirement
The reality is that retirement is often not so cut and dried. For many of us, the transition into retirement is not as straightforward as we might hope. We may find ourselves working part-time or full-time for longer than we anticipated or alternatively, redundancy could force us into early retirement. We may not be able to travel as much as we would like due to pandemics. Or, as we age, we may find that our savings and pension are not enough to support us.
For those that are ill-prepared, retirement is often a time of financial insecurity. We may have to make sacrifices to make ends meet. We may have to downsize our homes, subsidise our income with the Age Pension, and/or we may have to rely on our family for financial support.
The reality is that retirement is often a time of transition, a time of change and a time of insecurity. But it is also a time of opportunity. It is a time when we can learn new things, explore new interests and enjoy our leisure time. It is a time when we can be with our family and friends. It is a time when we can make a difference in our community.
Going through the 3 Phases of Retirement with the Help of a Financial Adviser
As we approach retirement, it’s essential to clearly understand the three phases of retirement and how financial advisers can help us through each stage.
The “Go-go” Years
The first phase of retirement is the “go-go” years when we’re still relatively active and healthy. This is when we’re still working but beginning to think about retirement.
During the go-go years, our focus should be on accumulating as much retirement savings as possible our setting ourselves up for the years ahead. A Financial Adviser can help us maximise our savings by tailoring investment strategies and tax-effective contribution strategies that match our situation, needs and goals.
The “Slow-go” Years
The second phase of retirement is the “slow-go” years when we start to slow down and may experience some health issues. By now we should have stopped working and beginning to draw down on our retirement savings.
During the slow-go years, our focus should be on preserving our retirement savings. Financial advisers can help us make the most of our savings by guiding investment strategies and income sources that can help us generate retirement income as well as take advantage of government entitlements during this retirement phase.
The “No-go” Years
The third phase of retirement is the “no-go” years when we’re no longer able to care for ourselves and must rely on others for help. This is when we need to start turning our attention to Aged Care, either through funding aging at-home services or residential aged care. The unfamiliar process requires effective decision-making, and it can take a toll on ourselves, our spouses and our family.
According to Aged Care Steps, by the age of 65, over half of the population will need to access aged care services for the future.1
Financial advisers can help us plan for the no-go years by guiding us through the whole aged care process and creating effective financial solutions for whatever care option is suitable for our needs.
Plan Smart for Your Retirement with CCFPG
The three phases of retirement, with help from a financial adviser, can be met with confidence and excitement or anxiety – it all depends on how early and how well you start planning. A financial adviser specialising in retirement planning can help you create a retirement plan that fits your unique needs and goals.
Are you looking for a financial adviser to help you with your retirement plans? Look no further than Central Coast Financial Planning Group. Our financial advisers cater to all stages of life, from young professionals to retirement through aged care. Call us or book online to secure your complimentary first meeting with our retirement advice team today!
DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.