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Retirement is not just about dollars

A life-cycle consultant has revealed only two in five retirees admit to being happier once they stopped working, prompting him to issue a reminder that achieving a satisfactory retirement goes well beyond how much money a person has saved in their superannuation fund.

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“We hear a lot about how much money you need to retire. But there is not enough discussion about how to actually do it,” 64Plus chief executive Jon Glass said.

“What will you do on your first day? In the second week? At the end of the first quarter, the end of the first year? These are all milestones that can bring great joy – or despair.”

Reinforcing the fact a satisfactory retirement is more than just about money, Glass shared the fact 20 per cent of people indicated they feel unfulfilled and another 20 per cent say they had no purpose once they left the workforce.

According to Glass, addressing this issue requires individuals to first acknowledge the intrinsic rewards their employment provided them.

“[A] key aspect of retiring is recognising that your work, your contribution, your colleagues have provided you with a sense of self-esteem, self-worth for decades,” he noted.

“Many retirees tell me that once they retired they lost their sense of self-worth that they obtained from the work that they did.

“This loss of identify and failure to craft a new one can be a big shock for many retirees, especially male retirees. It even has a name: Relevance Deprivation Syndrome.”

He suggested a solution for retirees suffering from this condition might be to determine how their skill set can make a different contribution toward their community.

“Think beyond the traditional forms of giving back, such as traditional volunteering or donating. You’d be surprised at how fulfilling it can be to impact someone else’s life in your own unique way,” he recommended.

To this point, he confirmed a key non-financial consideration when preparing for retirement was for retirees to have at least a rough outline of how they will spend their time during that phase of their life.

 

 

 

 

 

October 23, 2023
Darin Tyson-Chan
smsmagazine.com.au

Louise Laing

Louise founded Salus Private Wealth to offer high quality personal advice to clients who want to work closely with an adviser for the long term. Her philosophy that understanding each individual and their motivations and needs is key to an enduring and successful financial planning relationship is at the heart of the business.

She first engaged the services of a financial adviser herself when she was in her early 20s (long before becoming one) and believes the non-judgemental support and education about her position and options provided at this early stage has allowed her to make confident decisions in different aspects of life since then.

This confidence and positivity in making choices, financial or not, is what she wants to give to her clients.

Superannuation & Retirement

Superannuation is one of the largest and longest duration investments most people in Australia have, making it a critical part of long-term planning even if retirement feels like a distant objective. For those in the lead into retirement, we design strategies so you have peace of mind that when you start to draw on your retirement savings, you have liquidity and stability to support that.

Legislation and rules are changed regularly, so advice can help you take advantage of opportunities to build for the future. We are authorised to provide advice on and to SMSFs.

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While talking about death doesn’t seem like a particularly appealing prospect, it’s a topic we see as a vital part of financial planning. Importantly, it’s a topic for every adult, regardless of their stage in life. Without a proper estate plan assets may not be passed where you’d like them to go, family conflict can ensue, and in the event you lose capacity there may not be an authority in place for the person you would choose to make those decisions for you to do so. While it can be an uncomfortable subject, we are experienced in facilitating these conversations as part of our advice process.

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