(without falling prey to the most alarming retirement planning statistic in 2020)
Have you ever wondered what it is that’s most important to us in retirement years?
In our work in financial advice it’s a question we’ve asked more than 2,000 clients, people from all over The Hills. And whilst responses do tend to vary based on personal circumstances, there are some incredibly common responses. The results of a Financial Planning Association survey (1), when asked how they imagined retirement, showed respondents had very similar themes.
You’ll be surprised to learn that most do not relate to money or investing. You’ve probably already heard the saying “money doesn’t buy happiness” right?
Of the answers received from study participants, the following are nine of the most common desires of soon to be retirees:
- Relax
- Happy
- Travel
- Family
- Fun
- Success
- Freedom
- Money
- Fulfilled
Leaving aside money from the list above, you’ll see that most desires relate to a feeling people hope to experience in retirement years.
There is a twist however. These are feelings that people only begin to experience once they actually feel secure in their lives.
Once we begin to feel that our future is secure, the stress, anxiety, and fear that prevents us from experiencing our greatest desires begins to drop away.
We tell all of our clients that our role is not simply to help you accumulate a finite amount of wealth for retirement, it’s to provide you with financial security.
But sadly, for the 439,000 Australians who will retire this year, many will never reach this point.
According to recent research conducted by Roy Morgan (2), the majority of people retiring in 2020 will do so without enough money to last their retirement. On average, individual retirees have accumulated just $272k in net wealth, a far cry from the $545k the Association of Super Funds of Australia estimates is required to live a ‘comfortable retirement’.
Translation: running out of money in retirement is normal. But don’t be normal – because normal means stress, anxiety and fear.
If you’d like to avoid becoming part of this alarming statistic, here’s what you need to do about it. You need to follow the three simple steps we have outlined for you below
- Start planning today
To borrow from a very well-known saying, the best time to begin planning for your retirement was 20 years ago, the second-best time is today.
- Seek out great advice
Stop listening to people who haven’t achieved, or helped others achieve what you desire in life. Not only is great advice about helping you secure a comfortable retirement, it’s also about helping you avoid the most common mistakes people make when planning for your retirement.
- Stop doubting your own ability
You can have everything you want in life – including the 9 most common retirement desires – so long as you take action.
If you would like to avoid living in constant fear of running out of money, remember that achieving financial security requires you to do the one thing that most others do not: take action.
It’s the only thing standing between where you are today and experiencing everything you desire in life.
Ready to get started on securing your future? Schedule a no-obligation Discovery Chat with us – we’ll help your review your current situation, your aspirations, and identify the simple steps to get you where you want to be.
Discovery Wealth – The Hills trusted name in financial advice.
References:
1: Eisenberg, R. (n.d.). The Problem With The Way We Envision Retirement. [online] Forbes. Available at: https://www.forbes.com/sites/nextavenue/2018/10/30/the-problem-with-the-way-we-envision-retirement/#2262a1de5a46.
2: Roy Morgan. (n.d.). More Australians intend to retire despite inadequate savings levels. [online] Available at: https://www.roymorgan.com/findings/7949-retirement-intention-201904260129.
The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. Louella Jorge is an Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429. This editorial does not consider your personal circumstances and is general advice only. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information, you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser before you act.
