Investment markets have been as volatile as I can remember in a long time.

This is all part and parcel of the share market investment experience. If you open the door for better returns, expect some shenanigans along the way. Markets will recover. As long as you have time on your side, there’ll be no real damage done.

But what if you are retired. 

To retire isn’t a simple case of working one day and not working the next. Retirement significantly impacts every aspect of your life, especially how it affects your standard of living.

Ultimately, it’s our own responsibility to get organised, but too many workers are disengaged from retirement planning, especially during the early parts of their work life. They know they should be saving for retirement, but they don’t really understand what a comfortable retirement might look like. Often, they don’t know how to set a realistic goal or how to get there. 

So, what represents a good retirement income? 

Many people avoid going to the dentist, because they expect it to be painful.  You might know what I mean. That cracked filling - we never get around to doing anything about it until the darn thing falls out.  Or even when faced with the choice of enduring a ‘sometimes’ sore tooth for several months versus going to the dentist, we generally try to ride out the bad tooth in the hope it will get better! And how does that work out for you? An ounce of prevention is worth a pound of cure.

With interest rates virtually nothing, reverse mortgages may be the lifeline that cash-strapped retirees need right now.  But, proceed with caution.

We’ve recently discussed perhaps the most powerful retirement strategy of them all - work a bit longer.  

Well, now it seems that leaving retirement behind to return to the workforce is increasingly popular among older Australians. I came across this article originally published in the Sydney Morning Herald which shares the experience of 2 such people, and highlights the challenge of getting your retirement decision right. 

Saving and investing for retirement are important. But for most people, another strategy is far more powerful - working a bit longer.
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Keep reading. There are some provocative nuggets here.

Once a decision has been made to buy an investment, it is important to consider the best investment structure to use.   An investment structure refers to the way investments are legally owned.  Many people simply purchase assets in their own name or joint names, when other ownership structures may be more suitable.

There used to be a ‘traditional’ approach to retirement. It went like this.  

There’s so much today about the financial side of retirement.  Save more, invest more, have more, but for what? For you the answer may be financial independence, or maybe just the ability to stop working at a job you don’t like.  There are legions of experts out there to help you figure out your asset allocation, how much you need to save, how much you can safely withdraw etc etc etc.

The nature of retirement has changed.  When the age pension was introduced in 1908, life expectancy was 55 for men and 58 for women. With age pensions kicking in at 65 and 60 respectively, politicians weren't expecting a significant tax burden, nor did retirees require a great deal of money – the “Golden Years” often didn't last long!