Feb 17, 2020 / News

How long will your retirement savings last?

Generally the first question most retirees ask when discussing their retirement is: “How long will my retirement savings last?” 

People naturally want to be confident that their income streams and investment portfolios will provide adequate income for their life expectancy.

For individuals planning their retirement, lifestyle should be considered in the long-term wealth creation process. The sum of money that retirees accumulate during their working lives will drive their total retirement income and therefore influence their lifestyle choices. Once in retirement it becomes more unlikely that individuals will be able to ‘top up’ their capital base.

Changes in medicine have ensured that life expectancies are longer and all the evidence suggests that this trend will continue. The proposition that some of us will outlive our savings is not at all unrealistic. 

One thing is almost certain – you will be relying on your retirement savings for the financial peace of mind to enjoy retirement. Those years between now and retirement are important for generating income to build your retirement savings or to top up your superannuation to reach those retirement goals. 

Ask yourself:

  • What do you want to do in retirement?
  • How much money will you need to achieve your  retirement goals?
  • Is there a gap in your retirement savings?
  • When can you retire?
  • How and when will you be able to access your super
  • What Government support will you be eligible to receive?

The great news is that if you have reached your preservation age you can use a transition to retirement pension to access your superannuation as a non-commutable income stream while you are still working. 

This may be particularly attractive if you have reduced your working hours and need to top-up your income to maintain your standard of living.

So the key is to plan ahead. This can help you make the most of the opportunities that are available and help you achieve financial security, reduce uncertainty and enjoy your retirement. 

There are a range of issues you need to consider when you are planning for retirement including taxation, protection of your wealth and assets and how to structure your investments and make the right investment decisions. 

For more information or to discuss your individual circumstances, please contact your Edwards Marshall Financial Solutions Advisor.

About us

EMFS was formed in 2001 originally to service the financial planning needs of the clients of Nexia Edwards Marshall, Chartered Accountants. In addition, we now service clients referred by other accounting firms, lawyers and clients who are not serviced by Nexia Edwards Marshall. We manage funds totalling about $250m on behalf of clients.

Liability limited by a scheme approved under Professional Standards Legislation. Contents of this publication are general of nature and are not intended to be used for decision making purposes. Edwards Marshall Financial Solutions Pty Ltd ABN 45 096 434 842 is an Authorised Representative of Edwards Marshall Advisory Pty Ltd ABN 18 600 878 555. AFS Licence No. 479 792.