Life’s too short to miss out on retirement

Retirement looks different for everyone. For some it’s about travelling the world. For others it’s retiring earlier than expected, finding a new purpose, or simply feeling confident the money will last. Over the next three days, Starts at 60 is sharing the stories of three Australians who each approached retirement in their own way. Alongside new research from ASIC, their experiences show there isn’t one perfect roadmap — but there are practical steps that can help turn uncertainty into confidence. Today, meet Ray, who decided he didn’t want to wait until his late 60s to start living the retirement he’d imagined.

Nearly half of Australians approaching retirement worry they’ll run out of money, while only 18 per cent say they have a clear retirement plan in place.

It’s a sobering finding from new Australian Securities and Investments Commission (ASIC) research, which surveyed more than 2000 Australians aged 45 to 75 about their retirement confidence.

For Ray, those questions became very real in his mid-50s when he decided he wanted to retire earlier than most Australians. Looking back, he says one thing could have made all the difference.

RAY’S STORY

When Ray was in his mid-50s, he decided to retire at 60.

He wanted to embrace the golden years, that sadly some of his closest family and friends didn’t get the opportunity to.

After a four-decade career as a mechanic service supervisor, Ray was looking forward to time for the things he loves most: travel, fishing, golf and of course spending more time with his friends and family, including his two grandchildren.

He decided that waiting until his late 60s was too late for the good stuff in life.

“I started thinking about when I wanted to retire, and realised that I better start looking into what I actually need to do,” Ray said.

“I knew what my super balance was but realised a lot of the online calculators would measure your balance against retiring at around 67. Bringing it down to 61 needs a lot more money.”

Ray began to use online tools, including the Moneysmart retirement calculator, to get an understanding of what would be required before engaging with a financial advisor who could look at the finer details.

“The calculator was a brilliant starting point to see if you’re in the ball park or not. Then the financial advisor can help finesse your plan…including things like tax implications with super that I didn’t know about.”

Looking back, Ray wishes he started planning a bit earlier. He recalls colleagues discussing retirement 20 years ago, but it was never front of mind. Then, he and his wife had invested in property and spent a significant amount of time travelling thanks to discounted airfares through his work.

“I should have gotten it done much earlier, maybe even 10 years ago. But better late than never,” he said.

“I always thought an early retirement was for people who had lots of money – but you never know what might be possible until you sit down and do the sums. It pays to be curious.”

Now Ray has some straightforward advice for his own kids.

“My advice for the children is the earlier you start, the better,” Ray said.

It’s been six months since Ray retired – but golf and fishing have to wait just a bit longer. Some trips to Brisbane, Boracay and Hawaii are first on the cards.

Australians can access Moneysmart’s retirement tools and resources