Retirement Planning Guide

Tim Montague-Jones

Head of Australian Equity Research

Tim Montague-Jones has over 20 years of investment management experience working in the financial markets. Previous experience includes a ten year stint at Morningstar as a Senior Equity Analyst/Portfolio Manager, founding the Morningstar Growth Portfolio and a founding member of their Investment Committee. Tim was also a Senior Equity Analyst for Macquarie Group and a member of the winning team to obtain the 2016 LONSEC Fund Manager of the Year award.

Planning for a Financially SecureRetirement

Retirement is a milestone that promises freedom, rest, and the time to pursue passions long put on hold. Yet, achieving this life chapter without financial stress requires forward planning, discipline,and a clear investment strategy. At Australian Stock Report, we’re committed tohelping Australians navigate this journey with insight and confidence.

Why Planning Ahead Matters

Australians are enjoying longer retirementsthan ever before. With average life expectancies now exceeding 85 years for menand nearly 88 for women, retirement can last 20 to 30 years or more. That’s asignificant stretch of time to be financially independent, particularly withoutregular employment income.

What does this mean? Simply put, theearlier you start preparing, the more choices and security you’re likely toenjoy later. Retirement is not just a date; it’s a financial phase of life thatdeserves as much attention as any career move or property decision.

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Retirement is a milestone that promises freedom, rest, and the time to pursue passions long put on hold. At Australian Stock Report, we’re committed to helping Australians navigate this journey with insight and confidence.

Building Your Plan: Key Considerations

Understand What Retire ment Looks Likefor You

Your vision for retirement is unique. Whether you dream of travelling the world or enjoying a peaceful lifestylecloser to home, every plan comes with its own financial requirements. For some,this may include supporting adult children, managing health costs, or relocating for lifestyle reasons.

Start by outlining the lifestyle you’dlike, and then match this against your projected income and assets. Remember, a“comfortable” retirement looks different for everyone, but understanding your specific needs is the first step in building a tailored financial strategy.

Know Your Financial Position

Before you can set goals, it’s essential toconduct a thorough financial audit. This includes:

Tallying your current savings and superannuation balance
Reviewing all income sources and outstanding debts
Estimating future expenses based on lifestyle goals
Accounting for healthcare, home maintenance, and insurance costs

Most financial planners recommend havingaccess to 67% to 80% of your pre-retirement income annually. According to ASFA,a comfortable retirement currently requires about $73,000 per year for couplesand around $52,000 for singles.

Superannuation and Beyond

While superannuation plays a vital role inmost Australians’ retirement plans, it should not be the only piece of yourstrategy. Relying solely on your employer's contributions may not be enough, particularly if you experience career gaps or take time off for family.

Voluntary contributions and effectivemanagement of your super investments can significantly boost your long-termbalance. Review your super fund regularly, understand your investment options,and ensure your strategy aligns with your time horizon and risk appetite.

Creating Additional Income Streams

Diversifying your income through smartinvesting is a practical way to build wealth over time and protect againstinflation. Here are some asset classes worth considering:

ASX Shares: Offer potential for capital growth and dividend income. Focus on companies with strong fundamentals and consistent performance.
Bonds: Provide steady, lower-risk income through regular interest payments. Government and high-grade corporate bonds are ideal for conservative investors.
Property: Whether direct ownership or via REITs, property can generate rental income and long-term capital gains.
ETFs and Managed Funds: Provide instant diversification and exposure to different markets, sectors, or asset classes.

Remember, the right mix of investments willdepend on your retirement timeline, goals, and comfort with risk. AustralianStock Report provides regular market insights and research to help investorsmake informed decisions.

Protect What You Build

Effective risk management is often overlookedin retirement planning. Insurance, estate planning, and maintaining an emergency fund are all essential in protecting your financial security.

Ensure you have appropriate levels ofhealth, home, and personal insurance. Review your will and any powers ofattorney to make sure your affairs are in order, particularly if your familysituation changes.

Regular Reviews and Adjustments

Retirement planning is not a set-and-forget exercise. Regular reviews will help you stay on track, adjust to marketconditions, and recalibrate your goals as your circumstances change.

Automate savings and investments
Review expenses annually
Benchmark investment performance
Adjust strategies as you near retirement

These practices can help you avoidsurprises and ensure your retirement lifestyle stays aligned with your evolvingneeds.

Final Thought

Retirement is a new beginning, not an end.It can be the most liberating and fulfilling chapter of your life, providedit’s supported by a clear and realistic financial foundation. Start planningearly, revisit your strategy often, and seek out reliable resources that guideyour decision-making.

At Australian Stock Report, we empower investors with market insights, portfolio ideas, and expert analysis tohelp you grow and protect your wealth. Whether you're five years out fromretirement or just beginning your journey, the right planning today could bethe key to financial confidence tomorrow.

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Why to start investing now

Frequently Asked Questions

When should I start planning for retirement?

Ideally, start in your 30s or 40s. But it’s never too late. Even if you’re nearing retirement, small adjustments to savings, spending, or investing can still make a difference.

How much money will I need to retire comfortably?

Estimates vary, but most Australians need 67% to 80% of their pre-retirement income annually. Couples aiming for a ‘comfortable’ lifestyle should target around $73,000 per year.

What if I retire earlier than planned?

Life events like illness, redundancy, or family needs can lead to early retirement. Having an emergency fund and flexible investment strategy will help protect you against unexpected changes.

Should I invest in shares before retirement?

Yes, depending on your risk profile. Shares can offer growth and income, especially if you have a long enough time horizon. Consider diversifying with bonds or ETFs as you get closer to retirement.

Is property still a good investment for retirement?

Property can be a valuable part of your portfolio, particularly when approached strategically through direct investment or REITs. Ensure you’re aware of costs and market cycles.

Do I need a financial adviser?

Not necessarily, but guidance from a licensed adviser can be helpful, especially if your financial situation is complex. At a minimum, ensure your sources of financial advice are properly accredited by ASIC.