Retirement Advice: Secure Your Future with Expert Retirement Planning
Planning for your retirement early on allows us to create a tailored roadmap based on your unique needs and aspirations. At Phillips Wealth Partners, our dedicated team of retirement financial advisors is here to guide you every step of the way.
Our experienced retirement financial advisors will ensure that your assets are structured correctly, taking into account current legislation, while providing you with a clear understanding of our advice. We recognize that these are the most important years of your life, and we are committed to being right by your side.
Our approach involves:
Methodically determining your risk tolerance and investment requirements
Spending time educating you on the rationale behind your investment strategy
Structuring your assets correctly to achieve your desired income in retirement in a tax-effective manner
Retirement planning encompasses various considerations, but the most significant question is, 'Can I afford to retire?' Your spending habits play a vital role in determining the amount of money you need to accumulate for your retirement financial planning.
When envisioning your retirement, it's essential to consider your desired lifestyle and how you will secure the necessary cash flow to fund it. Your budget or spending plan should cover:
Needs: Rent, mortgage payments, strata and/or council fees, food, clothing, bills, and healthcare expenses
Wants: Holidays, dining out, entertainment, gifts
A 'rainy day' fund: A modest lump sum for unforeseen costs like car repairs, home maintenance, or new appliances
Savings and estate planning: Allocating funds to provide for your family and/or friends
Any other relevant expenses based on your circumstances
For more information and personalized retirement planning advice, speak to our knowledgeable retirement advisor at Phillips Wealth Partners.
Living Longer: Ensuring Financial Security for a Longer Retirement
Many people tend to underestimate the length of their retirement, especially as Australians are living longer due to advancements in medical care and living standards. The average life expectancy has significantly increased, particularly for individuals over the age of 65.
If you're 65 today, there's a good chance you'll live well into your 90s.
If you're 65 today, it's important to realize that you have a good chance of living well into your 90s. With this extended lifespan, it becomes crucial to have confidence that your finances will last the distance. Retirement may be more expensive than you initially anticipate.
While the Age Pension provides some income, it is unlikely to support your desired lifestyle. It's essential to explore investment solutions that can provide a reliable income for the entirety of your life.
Living longer also means that your cost of living and the purchasing power of your savings will be impacted by inflation over the long term.
Understanding the Impact of Inflation:
Considering the likelihood that your retirement may last 20 years or more, inflation can significantly affect your financial well-being.
If this inflation rate continues, the effects compound over time. After five years, the purchasing power of your initial $10,000 would be reduced to approximately $6,650 in today's dollars (7% inflation rate). In other words, the same basket of goods and services that cost $10,000 today would cost around $14,775 in five years due to the impact of inflation.
This demonstrates how a higher inflation rate can gradually erode the value of your savings and impact your ability to maintain your desired standard of living in retirement. It becomes crucial to account for inflation when planning for the future, ensuring that your investments and income sources can keep pace with rising prices.
as your retirement funds are typically invested for the long term, any direct or indirect investments in shares (e.g., via a managed fund) may be subject to market fluctuations that can impact your investment balance and, consequently, your retirement income.
At Phillips Wealth Partners, located in Canberra, we specialize in providing retirement advice tailored to the unique needs of individuals in the Canberra area. Our experienced team of financial advisors understands the challenges and opportunities associated with retirement planning in today's dynamic landscape.
Phillips Wealth Partners is located in Canberra. Retirement Advice Canberra.