Leaving the workforce

Hope for the best, plan for the worst

The concept of retirement has changed dramatically over the generations, but there remains one constant for most of us planning the end of our working life – to be able to do what we want, when we want. If your retirement is happening in the next few years, have you considered what will actually happen when you stop working? The Australian Bureau of Statistics released information in November 2013 announcing the highest life expectancy estimates ever recorded in Australia. They stated the combined life expectancy for both genders is 82 years. Depending on your retirement age, you could expect to need enough to fund yourself for a decade at least, if not two.

For many people retirement will give them the first real block of time they have ever had completely to themselves to spend however they please. Here are a few points to consider; and it’s not just about money.

Your wealth

When preparing to leave the workforce, some people focus so much on never working again that they overlook other important issues. The first and most obvious focus should be on the income needed to fund your specific retirement dreams. To make the most of retirement, your nest egg must be large enough to sustain your preferred standard of living. Your nest egg may seem to be a large sum, until you start costing your plans and including cash reserves to cover you for unexpected events like serious illness.

Your health

Many people plan for life beyond work assuming that they will remain healthy and vital. For most people this will prove true, but sadly, others may not be as healthy as they had hoped. Illness will incur additional pharmaceutical and medical expenses. Another cost to plan for is the potential need for aged care or home visitation down the track, which can be costly.

Please note that Trilogy Funds provides general information only and does not take into account any of your personal circumstances or seek to provide a personal recommendation to you. You are encouraged to seek expert advice before acting on any information contained in our resources.