Where your finances should be in your 60s 19



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By now, you’ve well and truly developed your money habits and are feeling good about your financial position. But have you ever wondered whether you are actually on track or falling behind your peers.

Well, with the help of financial planner Colin Williams from Humble Financial Services outline some important benchmarks to give you a good guide as to how you’re tracking.

If you are in a good enough financial position to retire, well done. Even if you’re working, you’ll likely be in a good spot, financially, by having less debt, less expenses and less wants than ever before.

Ideally, you’ll be continuing your good savings habit or have income from other sources so you’re not drawing on your superannuation too heavily.

Here comes the scary bit, Williams says that research by The Association of Superannuation Funds of Australia (ASFA), shows that to have a comfortable retirement, a couple would need to generate an income of $58,326 each year (as of September 2014).

“To put that into perspective, $1 Million dollars invested at current term deposit rates of 3% will only produce $30,000 in income – just over half of what you require and that does not take into account the need to keep up with inflation each year”.

By now you should have your Will prepared but it might be worth updating to reflect your current financial status.

When it comes to a credit card, you’re probably using it for travel and the odd emergency rather than for your everyday purchases.

Savings-wise, you may be quite asset rich and while that is an important part of your estate planning, you still may need a stash of cash for a last-minute holiday or in case of any unforeseen medical costs.

Having your home loan paid off will make a big impact on your daily living cost and your ability to plan for the future, but you may be using the equity in your home for other reasons or plan to sell, so its not a one size fits all approach. As your income slows, your mortgage will be harder to manage so you need a plan in place to maintain a good position on the home loan front.

Hopefully you’re enjoying the rewards of some smart investments made in previous years, this will help top-up your superannuation or help with day-to-day living expenses.

If any of the above is causing you to re-think some of your financial decisions, it might be worthwhile visiting your financial planner who can advise on where you’re at and what’s important from here on.


Do you feel prepared for your retirement? Did you find this advice helpful? Share with us below.

Kirsty Lamont

Kirsty Lamont is money expert at Mozo.com.au which helps Australians compare banking and insurance products like savings accounts, credit cards and travel insurance, and make sure they’re getting the best deals. Kirsty believes it’s never too early nor too late to improve your finances, and is particularly critical when you’re heading into retirement.

  1. The Abbott gov is pulling the rug out from under many retirees or pensioners. Not for a long time have they felt so insecure. Abbott controlled by ideology of IPA is not considering Australian working class people. People who voted Libs because that’s what they always did, have not researched the new style ideology liberal policies, need to think smarter in the future.

    7 REPLY
    • Not really , I have always voted Liberal, The Labor policies just don’t suit me, too much socialism, give to the bludgers and make the savers pay. I don’t know any poor pensioners, most I know have a part or full pension ,pay private health , some have small nest egg, but none of us is destitute, We do complain when Labor get on TV and suggest we are all on bread & Water, many of my friends were happy to pay a $7 co payment , just meant a bit of an adjustment weekly. The new idea of Assets sounds good, won’t affect many except very rich.

    • Dawn you are obvious not in the ratio of pensioners who have fallen on rough times & struggling. I know of many farmers who have lost everything to their bank & have nothing for their senior years. I know pensioners who lost their super & assets from dodgy

    • Carol I agree.
      However IMO Labor is not the answer. Perhaps if they ever show they could handle money I may have more confidence in the party.

    • My only reply is political parties current are different to the past. I am concerned with this gov & ideologies run by IPA & corporatizing us with USA. It’s more about money for their corporates & masters than us Australians, I am quite uncomfortable with it all. I don’t think they can handle money any better than any of them. But I want a gov for Australia & Australians.

    • and if you think times are tough now..wait ’til the TPP is in force.. signed by LNP..but also initially negotiated by ALP..

  2. Thank goodness the Abbott government didn’t get a majority vote all pensioners would be in serious strife

    3 REPLY
    • How did you come to that conclusion, something has to be done to repair the damage Julia did in the weeks before election, she spent money like a drunken sailor. I object to your ALL pensioners, I don’t know any poor pensioners, we all seem to live quite comfortably .

    • Carol didn’t I see you offering to pay a dollar extra out of your pay packets to help pay for the last Police, Nurses, Teachers, Defence personnel, Pay rises ?

    • Dawn you need to stop judging everyone by your own circumstances, you seem to do it a lot on here, you are lucky that you are in a good position but a lot of people through no fault of their own are not

  3. Due to prudence over many years, I’m reasonably catered for in retirement. However I know of many who struggle, due to circumstances beyond their control or sometimes poor planning and management. Some make the best of what they have, making decisions about spending which trade off quality of life for just living.
    What annoys me is decisions made about the lives of those not well off, but couched in terms foreign to them. Many I know who aren’t well off can’t understand “an extra coffee a week” because they simply can’t afford to eat or drink out.

  4. It’s not helpful to compare yourself with your peers. Instead look at how you can live – what are your expenses (admittedly it’s hard to be sure far into the future) what are your wants but what can you live without.

    Have your debts paid off and pay off your credit card before interest accrues. Use your superannuation website to run a few calculations and interest yourself in the risks and returns of investment options.

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