Thinking about leaving the workforce? Hoping for the best and planning 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 approaching, have you considered what will actually happen when you stop working? The Australian Bureau of Statistics states the combined life expectancy 80.4 years for males and 84.6 years for females. 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 chance to spend their time however they please. To be ready to make the most of this time, here are a couple of points to consider; and money is just one:

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 must include not only your plans but also cash reserves to cover you for unexpected events.

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. This is why it’s important to remain realistic and while it’s not as fun as planning your European river cruise, ensuring you have you’re set in the event of serious illness or aged care needs, which can be costly, is of high importance.

For more on superannuation or planning for retirement, check out how you can make sure your savings can go the distance in retirement.

This article has been prepared by Trilogy Funds Management Limited (Trilogy) ABN 59 080 383 679 AFSL 261425 as responsible entity for the managed investment schemes mentioned in this article. This advice is general advice only and does not consider your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances and we recommend that you seek personal financial product advice on your objectives, financial situation or needs and obtain and read the relevant product disclosure statement before making any investment decision.

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