Retirement Planning & Experiences

[hydrabyss]

I don't think it has been mentioned anywhere, so hopefully this is a useful addition (and I'd love someone with more knowledge to add a solution or correct me if I'm wrong...):

If you are wanting to convert to pension phase once you have reached 60, but without doing TTR, you only need to cease one form of employment (and can keep other employment or then take a new job, even with the same employer, without it voiding your official retired status).

However, if you are self-employed, I believe this is almost impossible, as the super fund will need proof of cessation of employment. As far as I can see (please correct me) the only proof is probably the voluntary cancellation of your ABN (and perhaps evidence that there's no website or whatever for the business anymore). But that then hampers you from resuming your work easily if you regret the change (or are trying to game the "retired" status to access super, as is readily done by employees (previous paragraph)).

From my understanding you could cancel abn, business name and shut the website but retain the domain name and sell off any assets remaining. Then say 12 months later reapply for the abn and business name if still available and use the domain name again for your website.

 

[Happy Dude]

What's been you're preferred calculation method for estimating how much you'll need in retirement? For those living it - has it been 'on the money'? If ever there's been a YMMV situation......

 

[Quickstatus]

preferred calculation method

Start here
Alternatively about 75% of pre retirement after tax income, adjusted for certain payments that you will no longer need to make.
Then assume CPI of average 3-4%

 

[aspro2]

What's been you're preferred calculation method for estimating how much you'll need in retirement? For those living it - has it been 'on the money'? If ever there's been a YMMV situation......

One thing that some of the very useful calculators or reference materials don't mention (or don't adequately explore) is that you should work out the cost of large financial events and how to budget for them over time.

• Will you need a new car?
• Will you need to do some sort of unavoidable work on your home? (e.g. roofing, fencing, restumping)
• Will you need to upgrade a lot of tech? (Can you survive as a "grey iPad warrior" like you see in airport lounges, or will you need a new computer once or twice or thrice? Same for mobile.)
• How many white goods are likely to need replacement (and aircon units too)?

 

[tgh]

Alternatively about 75% of pre retirement after tax income, adjusted for certain payments that you will no longer need to make.
Then assume CPI of average 3-4%

IMsnHO..the post retirement wage needs to be about the same or better than pre ; folks have more time for play, travel and the jones' need to kept in sight. Medical costs escalate and the dreaded care phase will eventually arrive.
Escalation needs to be real and not the CPI fairytale that has little credibility anymore.

 

[aspro2]

IMsnHO..the post retirement wage needs to be about the same or better than pre ; folks have more time for play, travel and the jones' need to kept in sight. Medical costs escalate and the dreaded care phase will eventually arrive.

That depends on how well one spends one's pre-retirement income... Rules of thumb are always difficult and too personal, but I guess taking your typical pre-retirement expenditure, rather than income, and adjusting it upwards primarily for likely increased outgoings like leisure and health, is probably about as close as someone can realistically get to a useful guesstimate.

 

[Flyfrequently]

Although after wrapping up our first two week road trip, MrsK might also be thinking about not having me around so much too.

You marry for "better or worse" but not for lunch @kookaburra75

MrsK (who is the older of us) wasn't impressed when I exclaimed, "...strike one up for being the toy boy!"

 

[Happy Dude]

I'm currently thinking that all travel ought to be done prior to 70, ie the first 5-10yrs in retirement. So those years considerably more expensive, and two sets of budgets needed.

 

[Pushka]

I'm currently thinking that all travel ought to be done prior to 70, ie the first 5-10yrs in retirement. So those years considerably more expensive, and two sets of budgets needed.

That won't work where children live overseas. And I'm more inclined to 78 minimum health allowing.

 

[Flyfrequently]

I'm more inclined to 78 minimum health allowing.

Also ability to get TI comes in to play @Pushka @Happy Dude

 

[Big John]

Start here

Thanks @Quickstatus ! That website was quite informative.

 

[Pushka]

Also ability to get TI comes in to play @Pushka @Happy Dude

Yes. That is an issue too. I think 80 is the kicker assuming reasonable health.

 

[kookaburra75]

You marry for "better or worse" but not for lunch @kookaburra75

We've been in training for the ".... but not for lunch every day phase", with me working from home most days over the past few years. MrsK peeks into the middle bedroom/home office and observes "oh, you're still here". We're settling into the new routine ok.

 

[Jacques Vert]

If you are wanting to convert to pension phase once you have reached 60, but without doing TTR, you only need to cease one form of employment (and can keep other employment or then take a new job, even with the same employer, without it voiding your official retired status).

However, if you are self-employed, I believe this is almost impossible, as the super fund will need proof of cessation of employment. As far as I can see (please correct me) the only proof is probably the voluntary cancellation of your ABN (and perhaps evidence that there's no website or whatever for the business anymore). But that then hampers you from resuming your work easily if you regret the change (or are trying to game the "retired" status to access super, as is readily done by employees (previous paragraph)).

The following is not financial advice:

When over 60 you don't need to stop work completely (even for a short period ). You just need to end a (one/any) employment contract/situation.

Apply to work on election day (federal/state/council). You sign a contract, work one day, contract finishes. Box ticked.

That’s what +1 did; but check with your accountant/financial adviser .

 

[kookaburra75]

I'm currently thinking that all travel ought to be done prior to 70, ie the first 5-10yrs in retirement. So those years considerably more expensive, and two sets of budgets needed.

All I can suggest, is don't fall into the trap of thinking everything health wise will continue unchanged. Stuff happens. Do it while you can. That's why parents in their late 30s took me and my brothers off around the world Retro Trip Report - UK, Europe & Morocco 1972 (or how did my parents survive?)

 

[tgh]

My kids still remember their first trip os
We were already in Europe and wonderful m in law loaded the on the plane in bne and sent them to heathrow

 

[clifford]

Do it while you can.

That's our approach. Both beyond mid-70's and still healthy and active (as much as you can be at that age).

As for travel insurance, we use the CBA complimentary insurance underwritten by Covermore. Never had to make a claim so don't know how good/bad they are. Hope we won't need to, but....

Never really thought too much about the cost. You can either afford the travel or you can't and you may not find out until,,,,

 

[Brissy1]

wonderful m in law loaded the on the plane in bne and sent them...

No ulterior motive there?

 

[Pushka]

All I can suggest, is don't fall into the trap of thinking everything health wise will continue unchanged. Stuff happens. Do it while you can. That's why parents in their late 30s took me and my brothers off around the world Retro Trip Report - UK, Europe & Morocco 1972 (or how did my parents survive?)

And gaps like Covid.

That's our approach. Both beyond mid-70's and still healthy and active (as much as you can be at that age).

As for travel insurance, we use the CBA complimentary insurance underwritten by Covermore. Never had to make a claim so don't know how good/bad they are. Hope we won't need to, but....

Never really thought too much about the cost. You can either afford the travel or you can't and you may not find out until,,,,

Except most have pre existings by now so needs to be noted and extra coverage. Because Insurance companies will always look for an out.

 

[kookaburra75]

That's why parents in their late 30s took me and my brothers off around the world Retro Trip Report - UK, Europe & Morocco 1972 (or how did my parents survive?)

I should say my parents have just tipped over into their 90s and only stopped independent travel 10 years ago. At a get together for Dad's 80th birthday they mentioned they were thinking of doing a trip. We had given Dad an android tablet and new DSLR camera. Three weeks later we got postcards to say how much they were enjoying travelling in the UK and Ireland and using the tablet for making travel and accommodation bookings. They had made the plans, but just forgot to tell us about them.