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A plan for a transition into retirement is essential for anybody looking to achieve a specific lifestyle goal, but for women it can be even more important.
A plan for a transition into retirement is essential for anybody looking to achieve a specific lifestyle goal, but for women it can be even more important.
The idea that a person might work full-time, then at age 65 suddenly stop working and successfully begin a happy retirement, is a foreign one in this era of ageing populations, talent droughts and changing superannuation regulations.
More likely these days is that a successful retirement will have been planned from many years, or even several decades, earlier. And that sudden break between employment and retirement is now drawing out into a far healthier, more satisfying and flexible transition.
The idea of a strategy around one’s transition to retirement – a personalised plan that takes into account the desired lifestyle not only in retirement but also as retirement approaches – has become a vital ingredient in the recipe for success. And for women that planning is even more important. Kim Guest, Senior Technical Services Manager at Colonial First State, explains why.
“For women, as for men, there are a lot of strategies and tools that can be utilised to achieve specific retirement goals,” Guest says. “But women face a few more challenges on the way to achieving those goals, meaning they should approach their planning in a different way.”
“First of all, in general women will live longer in retirement. So their savings must last longer, they need more to start off with and those savings must be well managed throughout their retirement.”
“There are also financial headwinds that women face during their lives that can get in the way of their accrual of wealth, including time out of the paid workforce to look after children or elderly parents and the simple fact that, in some industries at least, women can earn less than men.”
How do women get through these obstacles, then? Guest says it’s partly about mindset. The mindset angle is knowing there is always something you can do to have a positive impact on your end goal. Consider whether you should consolidate your super accounts to reduce fees, or contribute more to your super — even if it’s just $100 per month. And make sure your investment options are in line with your transition to retirement timeframe.
Don’t get caught up on needing a specific figure, but instead imagine your preferred retirement lifestyle and research its cost and options available to you in retirement.
Finally, seek financial advice as soon as possible, become informed about your investments and begin taking action to shape your transition to retirement strategy.
“A good retirement strategy supports a slower release from the workforce and, in doing so, offers great work/life balance,” Guest says. “Product solutions are readily available to support that slower progression to retirement. Speak with your financial planner and new options should become clear.”
Have you got a plan in place for retirement?
Speaking to a Financial Adviser is your first step to creating a path to the retirement you've always dreamed of.
Important information
This document contains general advice. It does not take account of your objectives, financial situation or needs. You should consider talking to a Financial Adviser before making a financial decision. This document has been prepared by Count Financial Limited ABN 19 001 974 625, AFSL 227232, (Count) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. ‘Count’ and Count Wealth Accountants® are trading names of Count. Count Financial Advisers are authorised representatives of Count. Information in this document is based on current regulatory requirements and laws, as at 30 November 2017, which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Count, its related entities, agents and employees for any loss arising from reliance on this document.