Welcome to your Retirement.

so, please explain this whole retirement concept.

I was reading Ben Carlson's - A Wealth Of Common Sense blog last week and he has highlighted 50 ways that the world is better than it used to be. Out of all the points that he stated, this was the point that stuck out most for me.

15. Retirement is still is a relatively new concept. In the past most people simply worked until they died. In the year 1870, for those who lived past age 65, the labor force participation ratio for males was close to 90%. Today it’s less than 20%. 
— Ben Carlson - A Wealth of Common Sense

These are staggering statistics and when you compare them to life expectancies and occupation types today, it is wonderful that we have easier jobs and longer to live. But, it is for these very reasons that we have a firm that assists people to maintain a retirement whereby they outlive their retirement funds and never worry about money again.

When you consider that in 1970 (when I was born) the life expectancy for a 65 year old retiree was age 72, all he had to do was shove his money in the bank and hope that he had $10 bucks left a week after his 72nd birthday. The 1870's seem a whole lot tougher than 1970 by the sounds of it.

In our firm, we are seeing people retiring earlier than 65 and still requiring for a comfortable retirement, about $60,000.00 p.a. or $5000.00 a month to meet their costs of living. Now before you jump down my throat, we have clients who need way more than this and others who need way less than this.

So, the role of a Financial Planner has developed in my opinion because of the changes in society with the increases in life expectancy. We need to be able to access returns that have any chance of you being able to meet your costs of living and the inflationary effects over say 30 years. An inflation rate of 3% (long term average) would create a tripling of living costs over a standard retirement term.

Are you set up to meet this major obstacle?

Obviously I am biased, but I believe that partnering with a trusted Financial Planner who has your best interests at heart can maximise the probability that you can retire whilst providing sufficient funds to meet your retirement lifestyle costs.

In my next post, I am going to discuss how we manage retirement funds to minimise risks and maximise long term returns for retirement.

You may want to download our flyer that shows how we manage retirement assets.

If you have any questions or want some more information about this post, please email me directly.   james@evolutionfinancial.com.au