From managing your super to planning your estate, here are the top six things every retiree needs to know in their 60s.
Reaching your 60s is an important milestone, especially when it comes to retirement. Whether you’re well-prepared or feel like you’re still catching up, this is the time to make critical decisions that will affect your lifestyle and financial security. Here are some key things every retiree should know as they head into their 60s.
1. Superannuation Strategies
By the time you’re in your 60s, superannuation will likely be one of your most important financial assets. This is a great time to review your super fund. If you haven’t already, consider consolidating multiple accounts into one to save on fees. It’s also essential to check if your investment options match your current risk tolerance and timeline. Many super funds offer tools and advice to help you ensure your super is working hard for you. Remember, from age 60, you can generally access your super tax-free, so planning how to draw on it strategically can make a big difference to your income.
2. Understanding Pension Eligibility
In Australia, the Age Pension is a safety net for many retirees. While it may not be your primary income source, understanding when you’re eligible and how much you can receive is crucial. As of 2024, the qualifying age for the Age Pension is 67, but your eligibility also depends on an income and assets test. Even if you don’t initially qualify, reviewing your financial situation with a professional every couple of years is wise to ensure you aren’t missing out on any benefits.
3. Estate Planning
If you haven’t already, your 60s are the perfect time to ensure your estate planning is in order. A well-considered will, enduring power of attorney, and a plan for your superannuation death benefits are crucial elements of a robust estate plan. Super doesn’t automatically form part of your estate, so make sure your beneficiaries are up to date and reflect your current wishes. This step can prevent future complications for your loved ones.
4. Maximising Retirement Income
As you edge closer to retirement, it’s a good time to look at ways to maximise your income. Transition-to-retirement strategies can allow you to reduce your working hours while still receiving superannuation benefits, helping you ease into retirement without a sudden loss of income. Additionally, consider whether part-time work or other income sources, such as rental properties or dividends, might help supplement your retirement savings.
5. Health and Lifestyle Considerations
As much as retirement is about financial planning, it’s also about ensuring you have the lifestyle you desire. Think about where you want to live, what activities you’ll enjoy, and your overall health. Consider long-term health insurance options, and don’t forget to budget for potential aged care needs. The earlier you plan for health-related costs, the more options you’ll have if those needs arise.
6. Seek Professional Guidance
Your 60s are the time to bring in the professionals if you haven’t already. A financial adviser can help you fine-tune your retirement strategy, making sure your income streams are sustainable and your investments are aligned with your goals. While super funds often provide advice services, seeking independent guidance might give you a more comprehensive view of your financial options. Make sure the adviser you choose is licensed and reputable.
For those just entering their 50s, check out The 5 Things To Do In Your 50s To Make Your Retirement Great. And no matter where you are in your life, these are The Biggest Life Lessons for Retirement – What You Need to Know.
