Financial Life Planning instead of retirement planning
On average, we are living longer and that's creating a set of new financial challenges for individuals and couples who need to accumulate sufficient wealth throughout their lives to generate adequate income to ensure a quality lifestyle in later years.

Research by the Stanford Center in the US focused on Gen Xers born between 1961 and 1981 and concluded that having a financial life plan rather than just a retirement plan is more important than ever.

It may be worth making mid-life adjustments to give this generation the best chance of not just living long, but living well, the report notes, and that may mean looking beyond superannuation for sources of income.

Income for life
Savings outside of super – money in the bank or a term deposit, a share portfolio or property investments – is the term now coined as 'income for life'. However with more of us holding multiple jobs or contracting in the gig economy, super contributions could be overlooked. 

The same goes for anyone opting to rent long term and not having capital in home ownership which could be freed up later to generate retirement income. Changes in work, savings and investment behaviours means uncertainty in retirement because our finances are less structured.

Instead, having a holistic wealth strategy from a young age is a good workaround, typically home ownership, building savings and generating tax effective post-work income preferably using professional advice not only from a Financial Planner but also including an accountant and solicitor for estate planning information.

There's no universal route to financial security in retirement, but there are common steps in the journey that puts control in your hands, not the government's. One way to start is with a financial life plan. 

To examine new retirement planning ideas or to further define or discuss your ongoing financial matters, simply call 02 6686 3000 or email adam.vermillion@collinshume.com.au. The first meeting is free and Adam believes there is always scope to do something better.

Essential Wealth and Retirement Pty. Ltd. ACN 603 149 837 is a Corporate Authorised Representative of GPS Wealth Ltd. ABN 17 005 482 726 | AFSL 254544 | Australian Credit Licence 254544