If you were born in 1950, for example, your average life expectancy is 87 years old (if female) and 84 years old (if male)1. Looking more into the future, it is predicted that by 2055 people will be living almost ten years longer than this still2.
So the simple approach to life of studying, working and retiring at 65 no longer seems to fit our needs.
Retirement can now be whatever you want it to be—you may change careers, further your education or take a phased approach so you can balance work with family or other interests.
Ruth Finkelstein from Columbia Aging Centre highlighted this at our 2015 Amplify conference.
What matters most in retirement?
The picture of retirement may have changed, but the things that matter haven’t. Like many Australians, you’ll probably have three goals top of mind:
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Independence
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Health
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Financial stability
How to create the retirement you want
Here are some things to think about when inventing your retirement.
1. Know your workplace options
With a shrinking workforce3, employers are realising the value of their experienced workers. This is great news if you’re looking to balance some work with some time off. Many workplaces are responding with new ways of working, which can include:
Offering flexible work arrangements, such as working part time or from home, or job sharingReallocating tasks that are too physically demanding or unsuitable for older employees to doCreating mentoring and training initiatives, so older workers can pass on their knowledge to younger generations.
2. Consider new ventures
Over 50s comprise the fastest growing segment of the start-up community, according to CIBC World Markets economist Benjamin Tal4.
So if you’re over 50 and wanting to follow through on your dream of being an entrepreneur, working as a consultant or studying again, now could be the time to jump in and do it.
3. Think ahead for independent living
Almost 1 in 4 Australians between 55 and 64 years of age moved house in the last five years5. At some stage you’ll probably want to downsize too! When choosing your next home, it’s important to think about your future needs. You may want to consider:
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Access to public transport
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Proximity to supermarkets, cafes and doctors
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Friendliness of the physical environment—such as the addition of park benches and well-lit streets.
Our education module Selling the family home will come in handy when you’re working through all that’s involved in downsizing.
4. Plan for your financial future
When you started working, it’s likely you didn’t know that the legislation governing retirement would keep shifting. With so much change, it’s vital to plan ahead.
Next steps
It’s never too early to consider the things that are important to you. There are a great number of possibilities, so explore different options.
And no matter what you’re planning for your retirement, we can help—contact us on 02 4605 0350 or admin@redpool.com.au.
Source – AMP
Important information
© AMP Life Limited. This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, AMP does not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.
1. Compiled from Australian Life Tables 2010-2012, Australian Government Actuary, 10 December 2014, superguide.com.au/how-super-works/latest-data-find-out-how-long-you-can-expect-to-live.
2. http://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2015/2015%20Intergenerational%20Report/Downloads/PDF/2015_IGR.ashx
3. http://www.theguardian.com/business/grogonomics/2014/dec/18/as-australias-population-ages-the-burden-on-the-workforce-is-growing
4. http://www.retirementredux.com/over-50s-fastest-growing-segment-of-new-start-ups/
5. ABS Census 2011; AHURI ‘Downsizing Amongst Older Australians