Here’s how an adviser can help close the loop between your financial situation and your retirement goals.
If you’re about to make the leap from accumulating capital in work to eating your capital in retirement, your success could depend on quality financial advice. Here’s why….
The Australian superannuation system has built up a huge community chest of capital. As the system gets closer to maturity, the focus shifts to ensuring that capital delivers more choices and an emotionally rich retirement. The key to success is quality advice.
“When people are saving for retirement they’re accumulating capital,” says Shane Oliver, AMP Head of Investment Strategy and Chief Economist. “In accumulation mode, everyone has one goal – build maximum capital. In retirement the goals shift, they’re as unique as the individual.”
Growing need for advice
What you want in retirement depends on multiple variables. Your health and that of your partner. The age of your children – and your parents – and the shape of those relationships. Longer lifespans and social change mean today’s retirees are more frequently dealing across generations and often with blended families.
So, while some see retirement as a long period of rest, many will become carers up or down the family tree. There will be those who explore side hustles, study, seek new jobs. While some need to get away and explore, others relish the time to live in their homes rather than just sleep there.
That’s why financial advice is a key element of the retirement landscape. There may be a time when Artificial Intelligence can help manage your financial situation by taking into account your unique needs and desires. But today, it’s your financial adviser who can close that loop.
“The transition from living off your pay packet to eating your capital is incredibly complex,” says Shane Oliver. “And in a world where the investment rules that applied for the past twenty years are changing, asset allocation and investment decisions are going to get more complex. Most people need more advice.”
Freeing you up to enjoy retirement
Ideally your financial adviser will be deeply involved in your accumulation strategies by:
- maximising your personal contributions
- optimising strategies like co-contributions and spouse contributions
- making sure your investment strategy is aligned to your needs and risk profile.
Yet it’s at retirement that the value of advice starts to really hit home.
Today, a lot of government rules in areas like Centrelink, transfer balance caps and total super balance limits are built around individual numbers.
Pockets of cash, buckets of growth
Some people will respond to a retirement income strategy built around ‘buckets’. Cash and term deposits buckets to meet short-term income needs and buckets of growth assets in account-based pension.
Every situation, retirement goals and lifestyle aspirations are different. Contact us today to make an appointment to see how we can help you work toward your retirement goals.
Current as at January 2025
