Retirement Planning

Whether you call it financial planning or retirement planning, it is never too early to start thinking ahead, especially if you plan on staying in the Perth area. While we can’t provide advice in blog posts, we can provide you with some general information regarding the planning of your retirement. Just remember that you need to call one of the financial advisors in our Perth office for individual advice.

Why is it so Important to Plan Your Retirement?

Once again, we can’t give anything that constitutes advice. What we can tell you, though, is that there is plenty of research suggesting that those who plan their retirements with specific goals are more likely to fulfil those goals than those who don’t have any goals. *

In a social or lifestyle sense, retirement goals may include lifelong learning, avenues for social engagement and intergenerational connections. Financially speaking, our retirement planners will work with you to set a retirement date and a retirement income. Then, it’s a matter of organising your finances to help you get there.

One of the biggest questions in retirement planning, especially in a market like that in Perth, is whether to downsize or stay in your family home.

Remember that we can’t give any individual advice here because everyone’s situation is different. So, don’t constitute any of what we are saying as “advice.” That being said, here are some factors to consider when thinking about downsizing.

The Numbers: Who is Downsizing?

Our parent company, AMP, has some pertinent numbers on their website. According to research cited on the AMP website, approximately 25% of Australians between the ages of 55 and 64 relocated in the last five years. (1)

Four popular reasons were cited. 23% said they wanted to live in a smaller home. 22% said they moved for family reasons. 20% said they moved because they wanted a lifestyle change. 23% said they moved for reasons related to health. (2)

Pros and Cons

Ideally, downsizers who move into a smaller home enjoy their lives, happily ever after. They have less maintenance and smaller monthly bills because there is less space. They may have a nice addition to their “nest egg” from the profit of selling their old home and buying a smaller, less expensive one. They find it easier to get around. Some even opt for “sea change” and its more relaxed lifestyle.