6 important money milestones to aim for in your 60s
Financial management in retirement is about so much more than cashing in our nest egg to jump in a campervan and drive around Australia. Care still needs to be taken when faced with a number of decisions that could seriously impact our quality of life.
Here are six of the most important financial decisions all of us must face at some point in our 60s. Getting these decisions right is crucial for a happy, healthy life.
1. Where am I going to live?
Of course you’re going to be emotionally attached to the house you raised your children in, but that doesn’t necessarily mean it’s the best option for you to live in as you age. Downsizing can make your overheads much more manageable and potentially give you a chunk of cash to invest or put towards a holiday. For more information about downsizing, click here.
2. Do I need to update my insurance policy?
Over and underinsurance are big problems for seniors in retirement. Have too much coverage (especially for unnecessary treatments) will put a strain on your finances, and not having enough coverage can leave your exposed in a financial emergency. That’s why it’s so important to review your policy regularly and make sure you’ve got the correct level of cover to suit your unique needs.
3. Are my debt obligations taken care of?
Debt can be crippling at any time of life and is a huge problem in Australia, with the levels of household debt tripling since 1988 from 64 per cent to 185 per cent. It’s especially problematic in retirement when an emphasis on managing the flow of cash is very important. This is why it’s important to address your debts as soon as possible.
4. Is my will up to date?
This is especially important if you’ve remarried or divorced, but every adult needs to make sure their Will is accurate and up to date. By not having an up to date will there’s every chance that you won’t have control to what ultimately happens to your possessions.
5. How am I going to fund my lifestyle in retirement?
Depending on when you were born you may be eligible to take the Government’s Age Pension from 65 and over, but it’s important to be aware of the implications of this decision.
Funds like Equip Super are increasingly taking steps to ease the transition to retirement for members, with tools like the Equip Super MyFuture calculator making it much easier to figure out how your nest egg is tracking and what you can do to make it healthier.
Equip also provides a useful Move the Dial tool which helps you compare your funds are looking, compared to other people of your age group around Australia.
6. Am I prioritising my needs?
As is often the case with circumstances like this, when making these financial decisions sometimes the last person we think about is ourselves. This is why it’s important to ask yourself if you are prioritising your needs in retirement, because in the end of the day you’re going to be the one who’s going to have to live with your decisions.
Do you agree with these targets? Is there anything we should add to the list? Let us know in the comments, we’d love to hear from you.
Equip manages $7 billion of investments for members working across a wide range of Australian industry sectors. This superannuation fund has been providing strong investment performance and has been a reliable provider of retirement benefits for over 80 years.
Related links:
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