Daniel Budrieka was quoted in this article in the Daily Telegraph by Anthony Keane on how the increasingly active aging population has an impact on our retirement and superannuation planning.
AUSTRALIANS are being urged to reinvent retirement, and it starts with seeing age 50 as only the halfway point of our lives. As life expectancy increases, so we are seizing opportunities to pursue new careers activities and hobbies, but advisers not that this means financial factors must be considered at a younger age than this has been in the past.
Financial giant Perpetual, which has launched a new guide to living a rich life from 50 to 100, says more years were added to life expectancy in the 20th century than all the years of prior human evolution combined. One in five Australians now aged 65 will live to 97, it says.
Perpetual says planning for “your second wind” starts in 40s with adequate insurance and an investment plan, retirement planning gets serious in your 50s, and beyond 60 factors such as charitable giving, business succession, investment management and lifestyle assistance come into play.
Planning for Prosperity financial adviser Daniel Budreika says most people start to think about later-life finances from about age 40.
“If you leave it late, it’s harder to make changes,” Daniel Budreika says he is concerned that many of today’s Baby Boomers will have to scale back their lifestyle expectations amid forecasts they will live much longer than they previously expected. They will have to be more realistic about the retirement income they generate and what that’s going to mean. Know what your cost of living is and then factor in money for holidays. It’s about feeling comfortable with what you are doing, having a plan and knowing why you are doing it.”