In our previous newsletter, we talked about the latest trends in retirement here in Australia, including the sheer numbers of Baby Boomers retiring this decade, along with the policy responses from government and financial institutions.

In this article, we want to address some of the non-financial considerations, which may help you make a success of this significant change of circumstances known at retirement.

Research reveals the key factors

Recent research by Invesco Global Consulting identified 3 key considerations that factored into the happiness of retirees.

1. Location: This included decisions like staying in the family home, moving elsewhere in the same area, or moving to a new (typically warmer) area. Around 25% of retirees chose to move, and 75% stayed. The research indicated that the vast majority of both groups were happy with their decisions, and “movers” were 10% more likely to be satisfied than “stayers”. For the stayers, important considerations were remaining close to family & friends, familiarity, and access to healthcare. For the movers, the considerations were better climate, moving closer to family & friends, living somewhere “retiree friendly,” and financial reasons (eg releasing home equity for investment purposes). Home maintenance and mobility concerns were also major considerations. Another interesting finding was that movers adjusted quickly – with 76% taking 6 months or less to get use to the new location. So, with location being one of the key factors to happiness in retirement, be sure to consider the various aspects mentioned above, and if a move is on your radar, consider a trial run before fully committing.
2. Vocation: Rather than referring to work, consider vocation as referring to all the activities and interests that keep you interested and excited to get up in the morning, and deliver a sense of purpose. Happy retirees are more likely to participate in sports, travel, volunteering and other hobbies or interests. Volunteering is one of the activities delivering the greatest sense of purpose. Similarly, engaging with others socially including family, friends and community connections is an important driver of retiree satisfaction. Around 26% of recent retirees returned to work in some capacity, largely to establish a purpose or sense of achievement. So, planning out the vocational aspects of your new life are clearly an important part of your retirement considerations.
3. Vacation: The research indicated that 83% of retirees plan on spending some time travelling, and 65% have specific lists of locations they would like to visit. However, “vacation” can mean more than just travel, and broader “leisure” considerations, such as sports, hobbies, concerts and other experiences all form part of the picture. In some cases, the two go together – for instance travelling to other places for sporting or other purposes. Many retirees also indicated that balance was important, striving to enjoy a mix of “making a contribution” and enjoying themselves.

Retirement planning more than just numbers

As you can see, there is much more to a successful retirement plan than just getting the numbers right. At AGS Financial Group, we strive to guide our clients through both the financial and non-financial aspects of retirement planning, and have a wealth of experience from our many retired clients to draw on. For advice on retirement, be it planning ahead, transitioning, or optimising your current plans, contact AGS Financial Group today.

Planning for your retirement?

Join our upcoming free “Building for Retirement” webinar. Designed for people nearing retirement, AGS Financial Group Director and founder Alex Berlee will guide you through the key steps in planning for retirement, including:

• How much is enough?
• Income sources
• Strategies to maximise your savings and income
• Transition to retirement
• Accessing Centrelink
• Estate Planning

All registrants will be able to access the event recording, in case you cannot catch the full session on the day.

Register: 27th & 28th Feb

 

Published : 29 Jan 2024