What you need to know abouT
Planning for Life After Work
Un-Complicating Your Retirement
Thinking about retirement can feel daunting, like trying to navigate without a map. You work hard and deserve to enjoy your money now, confident you are making smart financial choices for your future as well. Money should be a source of independence and comfort, not a mess of stress and worry.
At Stream Financial, our bread and butter is to un-complicate financial planning so you can see the horizon when it comes to your money and future. We’ve gained a lot of insight into how to achieve a worry-free retirement. Whether you’re a tradie, teacher, nurse, professional, or business owner, we help our clients make more possible with what they've got. So when it comes to planning for life after work, we know where to start: what do you want out of life?
Planning for retirement is a big deal
Having a plan for your money is arguably one of the best financial decisions you’ll ever make, but retirement isn't just about the numbers. A successful retirement plan should factor in your health and well-being including how you’ll maintain social connections, to whether you’re going to downsize or stay in your current home. A rich post-work life relies on visualising all the wonderful things you're going to do with your time, so thinking about all the things that bring you personal fulfilment - those hobbies and adventures you’ve been postponing - will help inform what you want out of retirement.
So, when are Aussies actually retiring?
The average retirement age in Australia is 57.3 years, but there is no fixed retirement age dictating when you have to stop working. Your timeline will depend on your superannuation preservation age (between 55 and 60) and your Age Pension eligibility (age 67). Another factor to consider is your own savings.
The beauty of retiring in Australia is that you have the flexibility to transition when it feels right for you, leaving the 9-to-5 hustle behind on your own terms. If you’re happy to keep working, you can; if you’ve saved a nest egg and are keen to quit, you can. Knowing what you want out of retirement will help you judge when the time is right.
The whole picture
There are a few moving parts that make for a wonderful retirement. Getting them all working together before you clock off for the last time is key. We’ve found that typical retirement planning can focus on one aspect while missing another completely. Having the whole package in view - the saving stage, the spending stage and leaving a legacy - is essential to setting up a great retirement.
Saving for retirement has three legs.
To build a solid financial foundation, we look at the "three-legged stool" of the Australian retirement system. It's all about balance - helping you enjoy life now while getting ahead financially, without compromising either goal. Here's how the model works:
Plan your retirement with confidence. Get expert advice for a worry free future
Spending in retirement is a "U"
We aim to help Aussies feel confident, knowing 'how much is enough' to make life-changing decisions about retirement. It’s understandable that many people assume retirement spending is a flat line, and calculate based on that assumption. But we’ve found that it usually follows a “U-Shape":
Phase 1 (The Go-Go Years)
Spending starts high as you tackle your bucket list. A good financial plan will help you build the 'fun' into your retirement plan so you can enjoy these adventures guilt-free.
Phase 2 (The Slow-Go Years)
Spending naturally dips as you settle into a more relaxed routine. When it comes to our clients, we advise them on how to monitor their budgets as a means of accountability and a way to stay on track.
Phase 3 (The No-Go Years)
Costs often rise again due to healthcare and aged care. We recommend you build a buffer so you can face life's rainy days with confidence.
Protecting your legacy needs a plan too
Finally, if you have superannuation, you need an estate plan. Many people don’t realise that your superannuation does not automatically form part of your estate when you pass away. Making sure your money goes exactly where you want it to go involves setting up Binding, Non-Binding, or Reversionary benefit agreements, which determine how much say your trustees have over your estate.
Estate planning is not just for the end of life - if something unexpected happens, you can have peace of mind that the right protections are in place. Choosing a capable Executor and setting up Financial and Medical Powers of Attorney ahead of time means you have all your bases covered for your own care and also for your loved ones.
Feel confident and prepared as you enter the next chapter of your life.
You can move from knowing to doing
It's not surprising that so many Australians put off retirement planning. But you don't have to. If you're ready to make that quantum leap from “no clue” to “let’s go!”, schedule a no-obligation discovery appointment with one of our advisers. We'll help you identify what you want to achieve and create a financial roadmap to get you there.
“This information is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider whether it is appropriate for you and seek personal advice.”