Have you worked all your life with your partner only to find that nearing retirement you are now divorced, alone and lost your independence?
Baby boomers, as they are referred to, are not all rich and taking the opportunity to spend the kids inheritance.
The ordinary Aussie work force that was fully employed in a 40 hour week did not have Superannuation. It was not until July 1st 1992 that legislation brought about Superannuation Guarantee for the employed.
Those born in those baby boomer years from 1946 and began work and worked and worked, hard. They paid board if they were still living at home with parents. Some call it the Good Old Days!
These baby boomers, oldest being 46 when the Superannuation Guarantee was legislated did not have a long time to gather much in their individual supers prior to retirement age if they retired at age 60. Most had their mortgage paid off but cash poor.
As life, opportunity and employment standards have improved we appreciate and value our independence even more.
Independence in retirement has to be planned. To me retirement is another lifestyle that has to be funded whatever lifestyle you choose. ‘Choice ’ is the operative word here.
Imagine residing in your home and having to have a family member and the partner, and their children moving in with you? Or, you having to move into their home? Can you imagine the loss of independence and lifestyle choices?
As an Adviser I hear and see some fantastic outcomes from carefully planned lives. Other stories not so much. For example, the man that had to sell part of his own property to his son and daughter-in-law so he could stay in his own home. The wife divorced him some years ago and the house was in need of some major repairs that he could not fund. He was not able to retire for another 3 years and had a part time job. Reality sets in sometimes when the opportunities have past.
Seeking help is a good thing. Baby boomers were never really encouraged to be financially savvy until later years. Many won their home, but, bricks and mortar and the costs of keeping the home on a pension just does not cut the mustard. Old age brings added expenses like prescriptions, optical, dental and medical expenses.
Plan a good life, with good debt and create a wealth strategy with protection around your plan. It is not hard with sound advice. Don’t be left alone …. and holding the bag!