Category Archives: Retirement

Retirement Age: Pension Age – Two Different Things Altogether!

I actually don’t particularly like either of these terms – retirement age: pension age.  Let me tell you why…

retirement age: pension ageI hear so many people refer to their retirement age as a time when they will finally get to relax, spend more time with the family, travel and do more of the things they enjoy.  Most people don’t get to this point, until they also reach pension age. Pension age is the age  when our Australian government will ascertain whether or not you qualify for some support to keep you in your old age.  And of course, with the handing down of the Australian Federal Budget for 2014, this pension age has been pushed out to the age of 70.

Here’s a quote from a letter to the editor in The West Australian this week:

Tired Over 60’s Carrying The Budget

I need to ask why this Government is so hell-bent on keeping us baby boomers in the workforce. I’m 60 and my husband is 62. I have worked since I was 15, my husband the same. We are both so tired and find it harder and harder to keep going.

At night I look across at my husband, only to see him asleep at 7.30pm. What sort of life do we have to look forward to? By the time we are allowed to retire we will be too tired to enjoy it or each other.

Unfortunately, these comments reflect the majority of our population.

Working Hard Just Doesn’t Work

As a teenager growing up I saw my own parents working day in day out with no time for holidays. And sad but true – they both have ended up at pension age living off a very limited income and waiting eagerly for the next deposit into their bank account of their aged pension.

After seeing my parents working so hard, I was dead set on creating a lifestyle that was easier and more fun for my own family.  I made the decision that property investing would be the vehicle to use.  I can’t say the journey has been all smooth sailing.  There are challenges and obstacles with anything that is worth doing.  For me, the things that have the biggest impact on achieving financial freedom are setting goals and continually investing in education.

“If you fail to plan, you plan to fail.”

No matter what age you are now – this is important!  Setting your goals and defining your time frame to achieve those goals is what is going to give you the opportunity to decide yourself when you are at ‘retirement age’.  Knowing how much income you want to live off per annum will keep you focused on seeking investment opportunities that will give you the returns you need.

The amount of passive income per annum (before tax) that you require to live off is:

$_____________  x 20 = $ ______________

This is the amount of net assets you require, earning a 5% per annum return.

So if you want $50,000 (a return of 5% on these assets), then you need $1,000,000 of assets at 5% yield to earn you $1,000,000 x 0.005 = $50,000.  These assets need to be debt free and do not include your family home (because your home does not earn you income).

It’s important to review your goals regularly and set time frames for when you want to achieve each milestone.

Because of a well developed property portfolio, even now at the age of 50, I can enjoy things like travel, family time and have the flexibility on how I spend my days. I don’t have to  wait until some magical ‘retirement age’.retirement age

Education = Deciding Your Own Retirement Age

Well educated and informed decisions can help you have more money available instead of ‘just getting by’ and waiting until you reach pension age.

Get good, sound guidance from experts (and that most likely excludes your family and close friends).

Sometimes people who are close to retirement age might think it’s too late to invest in property.  This is just not true!

What’s more likely is that you don’t know what you don’t know.  There are so many different investment strategies and options that it’s never too late to take control of your finances under your own rules.    I’ve used information from many educational seminars to decide which strategies suit me and will make good money on property no matter what age.  There is a strategy to suit you. All you  need is the desire….!

Do you long to plan and pack for an amazing trip or holiday?  Feel like spending any day of the week fishing?

Retirement Age: Pension Age  If you’re looking to choose your own retirement age … consider investing in property.

You might decide you’ll still sit it out until pension age, but, whatever you choose –remember retirement age:         pension age – they CAN be two different things.

Make your money work harder than you do!

Here’s to your success!

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P.S.  Leave me a comment below. I’d love to hear your plans for retirement and how you’d like to spend your time.

Retirement: A lotto win or something more reliable?

lottowinAre you one of the majority of the population that will not have enough money for a comfortable retirement?

Yes, it’s such a very scary question that in fact, very few people will address the situation.

We all need to have plans and goals for our future, and I can tell you now they will not happen on their own accord. This is a true fact that for about 10% of our population, their  strategy for retirement is to win the lotto.  How sad is that?

We all need something better if we want to live in a comfortable retirement. For a couple, the pension only pays approx AUD $26,000 per year which is not very much at all.  And the average superannuation payout is around AUD $75,000.  My calculations are that although you would have enough to live for a couple of years from your superannuation.  But after that then bang, you are living on the pension.  That may not sound like  such a bad idea to you, but with a little planning now, you could well and truly set yourself up for a much more comfortable lifestyle in your later years.

You may well ask “How is that at all possible?” Well I can tell you that nothing is impossible, and let nothing beat you.

I was in that position. I was 36 and married, we had a little money put aside, owned our own home, and thought we was set for life.  My husband and I sat down, had a really good look at where we would be when I was 55.  Don’t forget, I did not have superannuation, but I did have some shares in a portfolio although they didn’t amount to much.

What we could foresee as our financial future was real scary.

That is when I decided to start investing in property and now, 12 years later I have a portfolio of ten properties which are nicely spread across   Australia. Yes, property will have its time when it goes a bit flat, but let’s not forget the 15% drop  that a share market can take at any unexpected time. Property has been great to me and my portfolio has doubled in about 9 years.

As an experienced property investor myself, I have huge experience which I can pass on to you and I am just waiting to help and educate you in property investing.  It is possible for you  to enjoy a really rewarding lifestyle in your later years.

Keep your dreams alive!

Here’s to your success!

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