In a review of 3,000 people, The Moreton Group research showed the 2001 average age to access assistance for financial retirement planning was just under 58 years, whilst in 2021 this is just under 59 years of age – an upward trend indicating many people are delaying this conversation later when they should be having it earlier.
So what triggers retirement planning?
Australian Bureau of Statistics (ABS) reports show some of the main reasons for retirement are ‘reaching retirement age/eligible for superannuation/pension’ (36% of men and 22% of women) and ‘sickness, injury or disability’ (21% of men and 12% of women).
With the right information, people will learn they often don’t have to wait until they are eligible for the pension before retiring in some capacity. And they certainly shouldn’t take action on this unless they become sick.
One reason for late planning is that a large number of prospective retirees don’t actually know what they’ll do once it’s time to hang up their work boots, and thus avoid the discussion.
The Moreton Group wants people to know that although the future may seem far away for now, they should begin considering what’s next and be ready to adapt to financial changes, such as new tax laws and pension rates.
With the assistance of financial retirement advisors, many can retire sooner than they think.
Retirement planning is not just about how your superannuation looks – it should involve a hybrid-financial model, considering super and government entitlements.
Looking ahead to all the exciting opportunities and adventures retirement can offer should be exciting – not daunting. Why not begin planning what your adventures look like?