Why your retirement intentions are critical

Have you given much thought to the age that you might eventually retire?

         

 

Thinking well ahead about possible retirement timing is a fundamental part of financial planning – no matter whether you have spent years in the workforce or have just started your first job.

In short, having an intended retirement date in mind helps us to calculate how much we should regularly save to meet that target.

Fewer people than in the past leave full-time work on a Friday to begin full-time retirement the next day but rather ease their way into retirement, if possible by first switching to part-time work.

Of course, many of us would like to assume that we are in control of the timing and shape of our eventual retirement. Yet things often turn out differently in reality.

The most-recent Retirement and retirement intentions, Australia report, published by the Australian Bureau of Statistic (ABS) in December, provides an insight into our plans for retirement.

Of the 4.9 million people aged 45 and over in the labour force in 2016-17: 79 per cent intend to retire in the future. The remainder either hadn't made up their minds whether to eventually retire or intend never to retire.

Of those who aim to retire:

  • 50 per cent intend to retire between 65-69.
  • 23 per cent intend to retire between 60 and 64.
  • 7 per cent intend to retire between 45 and 59.

The average age for intended retirement is 65. By comparison, “recent retirees” – meaning those who retired over the past five years – had an average retirement age of just under 63.

 

Robin Bowerman, Head of Market Strategy and Communications at Vanguard.
22 February 2018
www.vanguardinvestments.com.au

More Articles

TRANSITIONING INTO RETIREMENT: WHAT YOU SHOULD KNOW

Deciding on your retirement funding options comes down to personal choice. . If you’re close to...

Read full article

The Deadliest pandemics in History

Check out the Deadliest pandemics in...

Read full article

Middle-to-higher incomes boosting SMSF growth

The SMSF sector experienced healthy growth over the March quarter, with men and women on middle-to-higher...

Read full article

The superannuation changes from 1 July

The super changes on the way from the start of the 2024-25 financial year. . A number of...

Read full article

Investment and economic outlook, May 2024

Region-by-region economic outlook and latest forecasts for investment returns. . For the last...

Read full article

Downsizer contributions can be time critical

With the expansion of the downsizer contribution, the timing of when it is used can affect how to use...

Read full article

Deeming freeze a win for Age Pensioners

Why the decision to keep deeming rates on hold may be a window for interest rates.   . In...

Read full article

Plan now to take advantage of stage 3 tax cuts

With the stage three tax cuts set to be implemented in around six weeks, opportunities for tax-saving...

Read full article

Sofie Korac is an Authorised Representative (No. 400164) of Prudentia Financial Planning Pty Ltd, AFSL 544118 and a member of the Association of Financial Advisers.

Financial Advice Sydney and the North Shore Office based in Gordon NSW

Financial Services Guide - Disclaimer & Privacy Policy

^