What is a retirement income strategy?

A retirement income strategy considers your retirement goals and objectives and the funding mechanisms used to reach those goals.

The Association of Superannuation Funds of Australia (ASFA) has benchmarked the annual savings you may need to fund either a modest or comfortable standard of living in your retirement years. This is referred to as the ASFA retirement standard. The most recent figures (September 2011) show that a couple looking to achieve a comfortable retirement needs to spend $55,316 a year, while those seeking a ‘modest’ retirement lifestyle need to spend $31,767 a year.

In addition to determining how much income you need to retire, your adviser can help you to determine how to fund that income. This may be through your superannuation and/or investment strategy, Centrelink support or planning for a ‘sea’ or ‘tree’ change in retirement. Determining the best outcome will depend upon your needs.

The sooner you begin to plan for retirement, the greater the number of financial strategies you may have available to you to help you achieve the retirement income you require. It may enable you to improve your financial position and lifestyle as you move towards retirement without reducing your income. Best of all, knowing where you stand means you can work towards filling the shortfall if there is one.

What kind of goals can a retirement income strategy be used for?

A retirement income strategy may be suitable if you:

  • Are wondering when you can afford to retire.
  • Wish to transition to retirement.
  • Wish to permanently retire from the workforce.

Seeking advice can help provide certainty around your retirement income, retirement date and your contributions. It also ensures you maximise any Centrelink opportunities.

Talk to us about how a retirement income strategy might work for you

If you are ready to see how a retirement income strategy can work as part of your financial plan, we will be happy to book an appointment to begin working with you to create a financial plan that’s right for you.

To get started, please contact us.


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