With only around 1 in 5 Australians seeking financial advice, it appears that seeing a money professional is not a high priority for many. Most often, a trigger is required for us to put our financial future in focus.
A friend dies suddenly, a mate is unable to work due to illness or injury, our partner is diagnosed with a serious illness, or we’re suddenly facing imminent redundancy. All cause us to re-evaluate where we are at and what we want to achieve.
Yet, statistics show that those who receive professional financial advice are better off to the tune of up to $80,000 at retirement. Pretty impressive, yet not enough to drive many to seek out a planner.
Today, we’re faced with longevity issues, meaning we’ll be retired for much longer with little compensation over our working lives for the extra years spent in retirement. Also, our health and financial situation will dictate whether that time is spent doing what we love, or to paying increasing medical costs.
If you love the lifestyle you’ve achieved and would like to maintain it, chances are you might need some professional help. Business Insider believes a comfortable lifestyle will cost us $57,000 per annum (debt free) yet the Age Pension provides a mere $22,000 per annum, hardly enough for many to ‘make ends meet.’ Failing to plan will have us on a less than modest amount in retirement.
Many would love the option of retiring before 65, yet the truth of the matter is, that living an additional 20–30 years doesn’t come cheaply. Women face larger issues with a life expectancy of five years longer than men and retirement savings of almost half those of their male counterparts. Women also tend to move in and out of permanent careers while raising families and caring for elderly parents combined with the fact that they often earn up to 18% less than men for the same jobs. These issues are currently causing much concern in financial and economic circles.
A financial planner can help navigate the issues that are bound to arise, and assist you in setting goals to protect what you’ve already created and work towards a healthier retirement.
Setting and achieving goals is easier said than done. Having someone to whom you feel accountable can assist on your journey, and the earlier you start, the better off you’ll likely be. To attain an objective assessment, it can be important to speak with someone who isn’t emotionally involved in your finances. Planning your spending and savings is paramount to making the most of your hard-earned dollars.
In some instances, advisers have discovered clients are entitled to government pensions and allowances that they didn’t know they were eligible for. Aged Care assistance is also vital in planning to stay at home longer or to transition into assisted living facilities. Did you know there are up to 4 levels of daily fees that may need to be paid for retirement living? Seeking advice helps ease concern and spells out simply how to best manage your funding.
Feeling more in control of your finances is a big plus and financial advisers can break down whether self-managed superannuation funds or certain investment options are right for you and your growing portfolio.
We’ve all heard the story of someone who’s made expensive mistakes on their journey and professional assistance can help mitigate those risks. Think of seeing a planner as an investment in your future as the benefits are likely to far outweigh the costs involved.
Making the most of your money may mean that you need to learn to prioritise what’s really important. Obtaining peace of mind with strategies tailored to your needs is priceless.
