Whilst many of you are hoping to retire by the age of 65, statistics are showing that a quarter of the Australian population are delaying their retirement.
Research undertaken by the ABS, in relation to Retirement and Retirement Intentions, has highlighted a significant shift in society. Their research found that in 2004 only 8% of people aged 45 and over intended to retire later than age 65. In comparison, 23% of people surveyed in 2015 intended to retire later than the age of 65.
The survey revealed that the main reason people will be delaying their retirement is lack of financial security (25% for women and 40%for men). A substantial 53% of people surveyed stated they expect to rely on super, annuity or allocated pension as their primary source of income in retirement.
These trends look set to continue given Australians currently have one of the highest rate of debt in the world.
So what can we do to change this? What can we do to not only increase cash flow, but to also reduce your debt in an attempt to help you live the lifestyle you wish in retirement?
If you are starting to think about retirement, with a minimum of 3-5 years to go, here are a few thing to consider:
Are you already retired? Here are some suggestions to make your money last longer:
It can be complex, and take considerable time, to research strategies to reduce debt and increase cash flow in retirement. If you would like help with working out which strategies will work for you, you can contact us on 9317 7300. We can help.
All pre-retirement and retired clients meet personally with Paul Baggetta. As a qualified Taxation Accountant and Financial Planner, Paul Baggetta helps his clients work towards retiring well and living well in retirement.
1,2 6238.0 – Retirement and Retirement Intentions, Australia, July 2014 to June 2015: http://www.abs.gov.au/ausstats/abs%40.nsf/mediareleasesbyCatalogue/C01D5E3F3A934E99CA257F80001564DE?OpenDocument
3 AMP.NATSEM Income and Wealth Report, Buy now, pay later: Household debt in Australia, December 2015, p6.
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The information provided on this website, including the material and contents provided in the website publications, are informative in nature only and you should not act specifically on the basis of this information alone. It should not be used as a substitute for legal, business, accounting, tax, financial planning or other professional advice. If expert assistance is required, professional advice should be obtained.
Paul Baggetta is the Founder & Principal of Baggetta & Co. Paul Baggetta has been a Taxation Accountant since 1981, a Financial Planner since 1998, and in 1993 qualified as a Real Estate Licensee, holding a Triennial Certificate (currently not trading) and operated his own Real Estate business for property investment clients for over 5 years as a second business.
Financial planning services are provided by Paul Baggetta as an Authorised Representative (No. 261469) of Capstone Financial Planning Pty Ltd. ABN 24 093 733 969. Australian Financial Services License No. 223135.
Taxation & Accounting services are provided by Paul Baggetta as a Registered Tax Agent (No.61487008) and is a Member of SMSF Association, FIPA & NTAA.