Retirement is an exciting time in most people’s lives. However, it can also bring anxiety and stress, especially if you are not financially prepared. That’s why it’s essential to start planning and saving as early as possible to secure your future. Today, I’m going to share that it is possible to start retirement planning in your 50’s. I will show you how one couple took action in their 50’s and paved the way for a comfortable retirement.
Jane and John were in their 50’s when they took action to plan for their retirement. With a duel income and the kids growing up, they loved their jobs and lifestyle, but they knew they wanted to retire before they turned 65. However, they had very little saved, and their monthly expenses were high. They realised they needed to start making some major changes to achieve their goal.
The first thing Jane and John did was seek professional advice and meet with a financial advisor. They discussed their retirement goals and created a plan to help them achieve their desired lifestyle in retirement.
As part of their financial plan Jane and John set up a cashflow system* to help them manage their spending and support their retirement objectives.
By undertaking some modelling around their lifestyle and retirement objectives the Adviser helped them understand how much they could spend today and into the future. By setting up a cashflow system* Jane and John did not have to track spending or undertake budgeting, which they (like most) did not enjoy.
Jane and John realised that by undertaking this process, the things that were within their control and the things that were not.
The next thing Jane and John did was to focus on debt reduction. They had several outstanding loans and credit card balances that were eating into their monthly income. They made a plan to pay off their debts, starting with the ones with the highest interest rates. They also stopped banking up debt on their credit cards making sure the balance was paid off each month, or only used cash or debit cards for their expenses.
Jane and John knew that making the best use of their available resources was crucial if they wanted to retire comfortably. With the help of the Adviser, they looked into their superannuation funds to ensure these were not costing too much in fees and the investment structure inside the fund was set up correctly according to their needs.
They also were able to take advantage of salary sacrifice to save tax and to boost their retirement savings.
Lastly, they created an emergency fund that would cover at least six months of living expenses and started to invest the money they were saving outside superannuation in low-cost passive investment funds that suited their investment risk tolerance and importantly ensured their money was well diversified.
Parting Thoughts: Wrapping Up the Journey
Jane and John’s story is an excellent example of how taking action and planning for retirement in your 50’s can change the course of your future.
By establishing a cashflow system*, focusing on reducing debt, saving money, and seeking professional advice, they understood they could retire comfortably.
This serves as an example of how life-changing it can be to have a retirement strategy in place.
It’s never too late to start planning and making changes to secure your future, regardless of your age or current financial situation.
With careful planning and guidance from a financial planner, they were able to achieve their retirement goals and have a secure future. With the right approach, you can too.
If you’re thinking about planning for retirement or you’d like to learn more about the cashflow system* click here to book a quick chat so we can explore your situation.