This article was written in collaboration with Private Client Adviser, Andrew Larkin.

1. How long will my retirement savings need to last?

Average life expectancy: As of 2024, the average life expectancy in Australia is 84 years. However, planning for a longer lifespan is prudent given advances in healthcare.

Longevity risk: How can I invest my retirement savings to ensure I don’t run out of money if I live beyond 90 or even 100 years?

2. How will inflation and cost of living increases impact my required retirement expenses?

Current Needs: According to the latest ASFA data for June 2024, couples aged 65-84 need a minimum of $73,337 per annum, and singles need $52,085 per annum to maintain a comfortable retirement. This reflects a significant increase from 2019, where couples needed $61,522 per annum and singles $43,601 per annum, representing a 19.2% and 19.5% increase, respectively.

Future Projections: With a 4.88% inflation rate, the cost of a comfortable retirement is projected to rise to:

  • $93,064 per year in 5 years,
  • $118,098 per year in 10 years,
  • $149,867 per year in 15 years.

Sufficiency of Savings: Is my retirement savings balance sufficient to meet these rising income needs, especially considering recent cost of living pressures?

3. Do I want to leave an inheritance?

Capital Preservation: Can my portfolio be structured to generate enough income to meet my retirement expenses without depleting my capital, ensuring a legacy for my heirs?

4. Do I know what my superannuation is invested in?

Franking Credits: Am I receiving the full benefit of franking credits, effectively boosting my retirement income by up to 40%?

Portfolio Transparency: Is my portfolio transparent, and do I have a clear forecast of the dividend income I can expect each year?

Asset Classes: Am I aware of all asset classes available for generating retirement income, such as floating rate major bank capital notes and other income-generating investments?

5. Investment risks

Market Resilience: Am I confident that my portfolio can continue to provide the required income during market downturns?

Advisory Support: Do I have a trusted adviser I can consult to avoid making poor investment decisions during volatile periods?

Example Morgans Portfolio Performance

Performance as at 31 August 2024, past performance is no guarantee of future performance.

Want a second opinion?

Contact us today to begin your journey with Morgans Gold Coast.

James Fulton-Kennedy

Financial Planner

Authorised Representative: 001237196

      
Contact James
      

Andrew Larkin

Private Client Adviser

Authorised Representative: 000259115

      
Contact Andrew
      

Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.

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