Managing Wealth

Managing Wealth

If you’ve been working, saving and investing well, it’s time to enjoy the fruits of your labour in retirement, but increasingly Australians are finding themselves without the resources needed to support them through their post-working years. This is due to a number of factors, but the most important one is that we are living longer. As the population ages, there will be less tax base to support those on the pension.

We’re working harder and living longer so our retirement investments have to work as hard as we have. Managing wealth in your retirement is about incremental and prudent adjustment of your strategy in accordance with your needs, objectives, economic conditions and legislation. Menico Tuck Parrish have been helping clients transition to retirement for over a generation and continue to help them build, protect and pass on their wealth.

The 3 Phases You Need To Consider In Your Retirement Planning

Active post-retirement (age 60-70 years)

There is a gradual shift away from employment and for the self-employed, a transition of the business to new owners or second generation. There is high discretionary spending as retirees are generally still in good health and able to travel and participate in sport and hobbies. There is usually an upgrade of motor vehicles for reliability and/or economy. This phase requires approximately two thirds of a person’s final working income.

Passive post-retirement (age 70-85+ years)

Discretionary spending begins to drop with lower energy levels and less travel expense. May look to downsize home / contend with possible loss of partner. Total consumption may begin to drop as discretionary spending falls but budget for essentials stays about the same as for phase 1.

Elderly Care (age 85+ years)

Health issues may arise. It may be time to consider a move from the personal home to a retirement village or aged care facility. There is a focus on core living expenses and medical needs.

More information on this can be found in:

Managing Cashflow
Retirement Planning
Estate Planning
Aged Care