After decades of working and saving, one of the biggest challenges retirees face is knowing how much they can safely spend. My husband and I recently found ourselves arguing over big ticket items – he wanted a new car to tow our caravan, I wanted to renovate our outdated kitchen. The money stress finally got us to seek professional advice.

With the help of our Insight Wealth Planning financial planner, we started by looking at our retirement savings and making sure they were structured correctly within superannuation. They told us to make sure we had the right investment mix – everything in cash might feel safe but could hurt us long term.

As homework, we each wrote down our top 10 financial priorities for retirement without discussing them with each other. Our lists were surprisingly similar. We both put not running out of money at the top of our lists. Our planner told us this was achievable through annual review and planning of our investment income.

With the right strategy, you can have a steady retirement income, and a super account plays a big part in that. One of the differences emerged: my husband wanted to leave a big inheritance to our kids, and I was less concerned about inheritance. After discussion, we compromised and left them the family home and focused our other assets on funding our retirement lifestyle.

We also tackled another major concern – aged care costs. Our planner walked us through various scenarios and options and we felt more comfortable about managing our care needs. They told us our city home provided us with financial flexibility as we could use downsizer contributions to top up our super if needed.

With guidance, we found a middle ground in our spending decisions. We scaled back both the kitchen renovation and car purchase to ensure long term financial security. More importantly, we have a framework to make future spending decisions together.

The moral of the story? Professional advice can help you resolve retirement spending disagreements and create a plan you both feel comfortable with. Sometimes, an outside perspective is exactly what you need to move forward together.

What We Learned

Retirement planning is a key part of having a comfortable and happy post-work life. With the right strategy, you can have a steady retirement income, manage your living costs and enjoy your golden years without financial stress. Whether you’re just starting to think about retirement or already approaching retirement age having a plan can make all the difference. We learned a lot about the process of planning for retirement, from understanding your retirement income to managing debt and savings. By following these steps, you can create a retirement strategy that supports your lifestyle.

Your Retirement Income

Your retirement income is the base of your post-work life, and understanding its components is crucial. One of the main components is your superannuation. Your super fund will provide a regular income stream that you can access from your preservation age, typically between 55 and 60. This income can be structured as an account-based pension and will be a steady flow based on your super balance.

Another big component is the Age Pension, a government-funded income stream available from age 67 if you meet the eligibility criteria. This can be a big top-up to your superannuation and help cover your living costs.

You can also access your super as a lump sum. While this might be tempting for big purchases or paying off debt, you need to consider how it will impact your long term financial security and government benefits.

By understanding how these income streams work together, we learned that you can create a sustainable annual income to support your retirement lifestyle. Regular review and adjustment of your plan will keep you on track.

Your Living Costs

Your living costs will be a big part of your retirement strategy. You need to consider all your expenses to create a realistic budget. Housing is a major one – will you downsize or move to a more affordable area? This decision will have a big impact on your financial situation.

Health care is another big one. Will you need to budget for private health insurance or out-of-pocket medical expenses? Having the right cover is key to peace of mind.

Recreation and staying active are important in retirement. Whether it’s hobbies, travel, or gym memberships, budgeting for these will help you live life to the fullest.

Your social life is important too. Dining out, entertainment and social events can add up, so you need to budget for these activities.

And finally, transportation costs. Whether you use public transport or own a car, you need to budget for these.

By factoring in these costs, you can create a retirement strategy that will support your comfortable and happy lifestyle.

Financial Strategies

A well-planned retirement strategy will help you achieve your goals and have a secure financial future. One of the strategies we adopted is to maximise your super contributions. By contributing as much as you can to your super fund you can increase your retirement income and get tax benefits.

Debt management is also important. Paying off high-interest debt before retirement will reduce your expenses and give you more of your income for other uses.

Investing in a diversified portfolio will generate extra income and security. You should seek professional advice to create an investment plan that suits your risk tolerance and goals.

Tax planning is another big one. Knowing how your retirement income will be taxed and planning for it will help you maximise your income and minimise your tax.

And finally estate planning so your assets are distributed as you want. Having a will and powers of attorney will give you peace of mind and protect your loved ones.

By following these strategies, you can create a retirement plan that supports your financial goals and future.

Debt and Savings

Managing debt and savings is important in the lead up to retirement. The first step is to pay off high-interest debt like credit cards. Reducing these expenses will give you more of your income for savings and investments.

You should also build an emergency fund. Aim to save 3 to 6 months’ worth of living expenses in an easily accessible savings account. This fund will be a financial buffer for unexpected expenses.

Maximising your super contributions is another strategy. By contributing as much as you can to your super fund you can increase your retirement income and get tax benefits.

Regular review of your budget will help you stay on track to your retirement goals. Adjust your spending and saving habits as needed.

We are not financial planning experts by any means but we found that by following these tips, we are confident of a secure financial future and enjoy a comfortable retirement.

Need help with your retirement spending? Contact us Insight Wealth Planning today.