Retirement Income

Having enough money for retirement is a major financial goal for many people.

To ensure that you have enough money to support your lifestyle in retirement, it's important to start planning early and make strategic decisions about your finances.

One strategy that we often use is the bucket strategy, which is a retirement income planning strategy that involves dividing your retirement savings into different "buckets" based on the timing of your future expenses.

The basic idea behind the bucket strategy is to have a set of funds available to cover your immediate expenses in retirement, while also ensuring that you have a plan to cover your long-term expenses. Typically, the first bucket would be comprised of cash or cash-equivalent investments that can be easily accessed to cover short-term expenses such as living expenses, healthcare, and travel. The second bucket may be comprised of low-risk investments that can provide income for intermediate-term expenses, such as home repairs or a new car. The third bucket may be comprised of higher-risk investments such as stocks or real estate that can provide long-term growth and income to support your lifestyle in retirement.

The advantage of the bucket strategy is that it can provide a sense of security and predictability in retirement, while also allowing for flexibility and growth. By separating your retirement savings into different buckets based on your anticipated expenses, you can be better prepared to weather market fluctuations and ensure that you have the funds you need to support your lifestyle in retirement.

Retirement Income FAQ

  • Retirement income is the money you have to support yourself after you stop working. It typically includes money from your superannuation account, other investments, and any government benefits.

  • It's important to start planning for retirement income as early as possible. The earlier you start saving and investing, the more time you have to grow your retirement nest egg and ensure that you have enough money to support your lifestyle in retirement.

  • The amount of retirement income you need will depend on your individual circumstances, including your desired lifestyle, health care costs, and other expenses. We can help you determine how much retirement income you need to support your goals.

  • To ensure that your retirement income lasts throughout your lifetime, it's important to carefully manage your expenses, plan for potential health care costs, and consider strategies such as the bucket strategy to provide a reliable stream of income in retirement.

  • A transition to retirement (TTR) strategy is a financial planning strategy that is designed to help individuals transition from full-time work to retirement. With a TTR strategy you can start accessing your superannuation savings while you are still working, and use these funds to either reduce your working hours or top-up your income. A key benefit of a TTR strategy is that it can potentially reduce your tax liability, as the income you receive from your superannuation is taxed at a lower rate than your regular employment income.