Retirement Planning & Experiences

[OATEK]

I have to say I do recommend getting an advisor . We didn't and I do regret now in a hindsight type scenario . I do believe we could be in an even better financial situation had we had some professional advice

We had two different advisors over the years, the first one around 1999. As part of my mid-life crisis I was lured out of a public service job for life with defined benefits super, into the world of contract work with a consulting firm. Going from safe and secure to high risk high reward.

The first advisor said park your defined benefits pension, it will grow, not as big as if you stayed in, but with annual CPI rises etc, it will be a very useful component of retirement. He then said also look for an investment opportunity, and to also consistently contribute more to super than the prescribed minimum (not sure, probably 6% at the time). These three components got us set up, a 2 bed unit at a beachside suburb rented out and negatively geared, and a big concentration on super up toi the maximum contribution level (hasn't that moved around over the years).

Then 15 years ago the deferred benefits scheme began paying, I didn't even have to pretend I wasn't working. We talked to our super funds, and the government one laid out a plan that we were very happy with. Switched all our funds from the (infamous) Onepath, took a TtR 10 years ago, then when we sold the unit we were completely debt free, and were able to top up our super accounts with non-concessional contributions.

When we moved into our apartment in 2021, mowing the lawn was the thing that hubby missed the most. He's happy now. He's planted a lawn up in Port Broughton and he can mow to his hearts content. I was happy not having to put out the bins. But now we've re rented the apartment for a bit, I'm really enjoying managing all that again in our city rental. Be careful what you wish for maybe?

I always had hay fever from mowing when young, and have never liked it. We still have bush views, the kookaburras and other parrots will still be around, and the only things I will really miss are the fabulous neighbours and the quiet solitude we enjoy at times. However, the apartment does not have any common walls with others, so provided the mob above us are not too rowdy we will be happy.

 

[Invisible Monkey]

So I asked chatgpt what you would need to retire in your 50's and this was what I got. How realistic are these numbers if you own your own home.

• Bare-bones early retirement: ~$1.2M
• Comfortable early retirement: ~$2M–$2.5M
• High lifestyle early retirement: $3M+

Four years out from being in my '50s' and I don't even qualify for the bare-bones early retirement even if the $1m was removed from that estimate.

My super balance is around $90k below where it should be for someone of my age according to various sources (I migrated to Australia in my early 30s, so I missed out on a good 12+ years of earnings compounding away within Super).

Both my parents are long deceased (both passed with zero assets) so I have no inheritance coming my way, don't own my own home, no mortgage, no debts, CC is paid off every month, car is ten years old and owned outright & I have two young dependents that take priority financially over the next 15 years.

I could be viewed as being asset poor and cash 'comfortable' given I'm debt free and have access to a decent amount of savings to call upon but when it comes to retirement, home ownership really does make a huge difference if comparing someone that has mortgage payments or pays rent v those that own their own home outright.

Don't get me wrong, I'm well aware there are many people far worse off than I am but the sums that are needed to be comfortable in retirement makes depressing reading for the majority of people that will never even come close to having those kinds of sums, home ownership or not.

 

[hydrabyss]

I have to say I do recommend getting an advisor . We didn't and I do regret now in a hindsight type scenario . I do believe we could be in an even better financial situation had we had some professional advice

I left fulltime work 10 years ago as i could not keep up with the physical aspect of the job and did not refinance some loans at the time but I think it was also the same time they made lending changes with interest only. Hence I thought I better start getting an idea on which direction to go this time. .

 

[hydrabyss]

Super + income producing assets net of loans

My partner is 64 and between us lucky to have 200k in super. The one thing I do have is access to an income replacement pension which is not means tested. So with other assets all I need is to find 50k per year to get to the 80k spend.

The issue will be inflation and 80k will need to be 100k and so on as time goes on.

 

[RooFlyer]

Anyone wondering what they might do in retirement to fill in the time.... family history! Good chances are it will fairly well consume you AND for the majority of us, lead to more overseas travel to investigate. Some of the prettiest villages in England and Scotland I have visited have been way off the beaten track to see where the ancient rellies lived (and some current ones).

Revisiting the thread after quite awhile.

I found my answer to the above - cruising!

 

[Quickstatus]

I found my answer to the above - cruising!

It might be the ultimate downsizing

 

[Brissy1]

I have to say I do recommend getting an advisor . We didn't and I do regret now in a hindsight type scenario . I do believe we could be in an even better financial situation had we had some professional advice

But no advice is better than bad advice. Saw an advisor once and only once, was in my 40s when my gov employer became a statutory authority. Advisor recommended I withdraw my Defined Benefit balance and put it in to retail super fund of his recommendation. Massaged figures showing how I'd be better off (based on his earnings presumption and excluding inflation after retirement). Creep. (No I didn't take his advice but others did ).

I know there's the best interest requirement now but that doesn't seem to have stopped advisors recommending churning, products based on high commissions, and consequential $M100s (or is it up to $billions now) losses.

Certainly get advice on structure, but not with whom to place your $. IMO.

 

[CaptJCool]

I know there's the best interest requirement now but that doesn't seem to have stopped advisors recommending churning, products based on high commissions

Self interest comes first
They gotta make money themselves
What better way than repeat customers

It’s why no one who goes on NDIS gets cured
It’s what runs any business continuing revenue. Perish the thought a customer holds an investment property for years (denying agents commissions)

 

[mrsterryn]

It’s why no one who goes on NDIS gets cured
It’s what runs any business continuing revenue. Perish the thought a customer holds an investment property for years (denying agents commissions)

I thought for NDIS it basically had to be a life long situation ?
As we age it will be cheaper for us to employ cleaner, gardener etc than apply for age care due to our income. Those costs also need to be taken into consideration with retirement . Thankfully there are more choices nowadays than just Meals on Wheels (not there yet but anticipating one day the need will be there ) for prepped meals

 

[kookaburra75]

But no advice is better than bad advice. Saw an advisor once and only once, was in my 40s when my gov employer became a statutory authority. Advisor recommended I withdraw my Defined Benefit balance and put it in to retail super fund of his recommendation. Massaged figures showing how I'd be better off (based on his earnings presumption and excluding inflation after retirement). Creep. (No I didn't take his advice but others did ).

I know there's the best interest requirement now but that doesn't seem to have stopped advisors recommending churning, products based on high commissions, and consequential $M100s (or is it up to $billions now) losses.

Certainly get advice on structure, but not with whom to place your $. IMO.

That's why I always recommend paying for financial to ensure that separation between them pushing a product and getting good advice. It always surprises me when people express shock at paying $5k for advice, but given that's about 0.00001% (slight exaggeration) over the life of my retirement I can live with that.