Why professional financial advice becomes even more valuable as retirement approaches
Sandra had only a couple of years of work left when she realised she had no clear plan for what to do with her superannuation once she retired.
She had always looked forward to retirement, but as her sixtieth birthday approached, the reality began to set in. Without the ability to earn income in the future, the decisions she made now would need to support her lifestyle for decades.
Her friend Jamila, on the other hand, felt confident and prepared. Jamila had worked with the same financial adviser for more than thirty years, and her retirement strategy was already well underway.
Over coffee, Jamila offered to introduce Sandra to her adviser. Sandra hesitated, believing that because her home was paid off, her children were independent and her Will was up to date, there was little a financial adviser could do for her.
Jamila disagreed.
For her, retirement was the most important stage to seek financial advice. Once full-time work ended, there would be no opportunity to replace income if mistakes were made. Her savings needed to fund her lifestyle for up to thirty years.
Jamila explained how her adviser helped her understand critical retirement decisions, including:
- Transitioning from a superannuation account to a retirement income stream
- When taking a lump sum withdrawal might be appropriate
- Maximising super contributions, including strategies such as the government downsizer scheme
Her adviser also helped her navigate Australia’s complex tax and Age Pension rules, allowing her to reduce tax and optimise her potential entitlements.
Beyond income planning, Jamila described the importance of comprehensive estate planning. She explained that having a Will alone is not the same as having an estate plan.
Estate planning can include powers of attorney, superannuation beneficiary nominations, family trusts, insurance, asset protection strategies, and the management of digital assets such as online accounts and digital wallets.
With so many interconnected decisions, Jamila found that working with a financial adviser helped her make informed choices and feel confident about her future.
Importantly, her adviser regularly reviewed her retirement strategy to ensure it stayed aligned with market conditions, portfolio drawdowns and her evolving lifestyle goals.
As Sandra listened, she began comparing Jamila’s excitement about retirement with her own growing anxiety. By the time she finished her coffee, she realised professional advice could make a meaningful difference.
Like Sandra, many Australians approaching retirement believe it is too late to create a strategy or that all major decisions have already been made.
In reality, financial advice is often most valuable just before and during retirement, when mistakes can have a lasting impact on lifestyle, income and confidence.
Ultimately, financial advice can deliver something beyond technical strategies and projections. It can provide clarity, confidence and peace of mind at one of life’s most important transitions.
For confidence and clarity as you approach retirement, speak with your financial adviser about strategies tailored to your personal goals and circumstances.
