This year’s Budget has an emphasis on retirement planning and contains several important considerations which may affect both retirees and pre-retirees, explored further below.
Remember, these are not Law yet, and could change because of the argy bargy of politics
A third of marriages end in divorce*. Relationship breakdown is an emotionally difficult time, that can have a significant financial impact as well, This impact can continue well into later life. For example, households with men and women aged 55–64 years who haven't divorced earn around $10,000 a year more than those households headed by divorcees**of the same age.
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.
An old Darwin connection tracked me down during the week. Man, did we have some laughs. In between tall stories, (let's call him Bill) reminded me of a casual conversation we had about wealth creation nearly 20 years earlier. I can’t remember it, but in the end he went with a conflicting approach from a competitor. It went a bit like this:
Retirement ought to be the time of your life. And for many retirees that holds true.
Some would say that they were happily retired, while others wouldn’t even admit to being retired at all! That’s the point – this next phase of your life will be about living the kind of life that YOU decide.
At 50, financial questions begin to shift from “what are my goals for the future?” to “where have my past decisions led me?” Financial adviser Tony Sandercock explains.
This blog was originally posted in "Slice of Life".
At 30 you may have your first mortgage, have started a family, and be well on your journey towards financial wellbeing. However, if you’ve hit 30 and suddenly think you’re over the hill, rest assured when it comes to building financial wealth, time is still on your side. Take the time to review these questions to see if you’re on the right track.
This article originally appeared in the "Slice Of Life".
You might be surprised to know that I have a financial planner. Mike is probably more an accountability partner than anything else, but he ensures that Tracie and I conduct a formal review of our situation annually. After all, I don’t want to be like the mechanic who has the worst car in the street! When you are close to something, it pays to have an objective view.
Many seniors will wake up to a rude shock come January 1. That’s the day that the biggest changes to Age Pension Assessment in a decade will apply (if you missed it, here’s a quick summary of the changes). Some estimates say the Age Pension Assets Test could have as many as 200,000 pensioners receive lower part pension payments and up to 100,000 lose pension payments altogether.
Are you concerned about how the changes due on the 1st January 2017 may impact you? What will it mean for your retirement nest egg? Not sure what you should be doing about it?
Take an Age Pension Assessment. Compare your entitlements under the current rules and those applying after 1 January 2017. Assess the impact of the changes on your retirement lifestyle.