Retirement Age Query

sandgrooper1 · Senior Member

Retirement Age Query

Dougwe · Chief one feather

How, Big Al, good to see you using the forum.

When I visited my accountant at 59 his parting words were "Well, you could retire next year mate" um but I'm not 65. "Don't have to be" "You can retire at 60 and access your super"

Shut the front gate!

13 Months later I retired and now get a monthly pention paid by my super fund (Allocated Pension). Spose you could say I'm self employed. I prefer to say I am a self funded retiree.

My super fund wanted me to see their financial advisor but due to being in Local Government at management level for 25 years and planning, forecasting, working with and reporting on a very large budget I felt I could do my own financial planning.

I have been on the road full time now since September 2014 after selling up base camp that I only spent 4 months out of 12 for 3 years and just love the life. I don't like the aches and pains and health issues that go with getting older but I sure do love retirement. The PM will pay me soon.

IMO, if you can, go for it early mate.

Keep Safe out there.

-- Edited by Dougwe on Tuesday 28th of July 2015 01:35:29 PM

Fastcoach · Senior Member

The minute you reckon you have enough to live comfortably on, is the right time to retire.

You may have to reconsider what really matters to you as regards your needs and wants,
but unless you totally love your job, retirement beats work hands down.

I was in my early 50's when I pulled the pin and I still reckon it was the best day of my life.

Too many people wait far too long to retire, thinking they will need absurd amounts of money
if they are to have a decent quality of life. Assuming you own your home, have collected a few toys
and have a reasonable amount in super, get out and enjoy the rest of your life.

Unfortunately, life is often shorter than many would like. Don't waste it working.

Spydermann · Senior Member

I pulled the pin at 53. Ten years last weekend. Lived off savings & accrued long-service leave until 60 then cashed in my super. Probably have most of it spent between 65-70. Will qualify for part pension at 65 and full after I spend all my savings. Need to pay everything off and put some money aside for whitegoods & electrical goods.

Got a Low-Income Healthcare card and do not pay tax at all. The Low-Income Healthcare card is good value. You only pay tax on the first ~$20,500 of income. If you have a self-manager or purchased annuity, part of the annuity is return of capital that is not taxed. So if you get $50,000 per year of which only $20,000 is from interest, no tax. $50,000 tax free is not bad. But you do need to investigate it all. Spread-sheets are a great way to investigate "what-ifs". Only problem at the moment is my investments I made from 53 plus my super at 60 are all coming up for renewal (3 & 10 year) and the new rates are about 1/3 of what they were 3, 5 & 10 years ago. The interest rates may have been cut to allow yuppies to over capitalise on their houses but they are screwing self-funded / managed retirees.

My dad pulled the pin at 57 when all of his mates were dropping off the perch. He lasted till 81 & mum is now 91. They've never regretted it.

If you are saving for a "rainy day", make sure you recognise when it's raining. My late father-in-law missed the signs and never did anything he wanted to do until he was in a wheel-chair - then it was to late for his trip around there "big-paddock".

No idea how I had time to go to work. You do need a hobby, something to do. Some people miss the social interaction at work.

Spydermann · Senior Member

Don't confuse retiring with access to superannuation (60) or aged pension (65). You can retire anytime you like as long as you think you can fund you lifestyle.

JayDee · Guru

Al & Sue,
Well it is now 20 years since we decided to get out of the rat race so to speak.
Did a one to two years work consulting, then decided to opt for full time retirement.
Never regretted it. As a matter of fact ... we have never been better off in our lives both financially and status wise.
Status wise I mean owning everything we have and do not owe any $$$$ except for our monthly Master card, which naturally gets paid by due date.
Family have all gone their own ways some years ago and our family is now gone from 2 to 17. So all happy.
Agree, if you think you have sufficient funds to retire, then what is holding you back.

But must stress... having the necessary nest egg is a must to go down this track.
Good luck in your decision.
Jay&Dee ( happy retirees.)

-- Edited by JayDee on Tuesday 28th of July 2015 02:36:23 PM

Peter1059 · Senior Member

Hi Al & Sue

I am 55 my better half is 54, this is in the back of my mind on a frequent basis. Our plan (at this stage) is to ensure the house is paid off (2.5yrs) then jack up the super until I am 62 then take long service at 1/2 pay then all outstanding leave then retire. Is essence I will retire when I start my leave but it won't be official until they stop paying me.

This does two things, 1. it allows me to test the retirement water and 2. if it all goes badly I still have a job.

But I am afraid this is your question to answer and I wish you the best of luck working it out.... I find red wine helps and when you work it out let us know. smile

sandgrooper1 · Senior Member

Hi again,

Thanks for everyones thoughts so far. I have just lost a mate at 62...massive heart attack, my father died at 62 from a series of strokes after six months retirement in 1989 with a new Range Rover and caravan in the drive.

I had to sell both for mum who is turning 90 this year but when I sold those items it felt I sold her dreams etc at the time. She made the best of life, but, as she has said it wasn't the same.

I am trying to balance the rainy day thought with realising time will slip by and we don't want to leave it to late.

Thanks AL

TheHeaths · Veteran Member

Al and Sue,

I turned 59 yesterday, and it was the last day of my casual job I have had for most of the past 7 years. We head off for 3 months in SW WA on Saturday, and then who knows what. Kathy retired last year after a redundancy from her job, and she is loving it. I must admit that both her and my redundancies over the past years have been of a great assistance, as we are debt free, making the decision easier. Then again, my natural accounting conservative thoughts kept me back for a while.

Had an abortive try last year, interrupted by my sister in laws illness. Then my Mums transition to a nursing home this year has delayed us. However, we are now on the move.

We are lucky that I feel we have sufficient funds to do this, and seeing health of our family and friends, as well as our own aches and pains, we felt it had to be done, so we don't get to 70 and say why didn't we. There are always reasons not to do it, and it is easy to rationalise staying put, or just getting that extra $$$ into the super, but as you have seen with your mate and your Dad, life can bugger you up very quickly.

Start serious planning, and make it happen, the first step into the retirement abyss is the hardest, but only you will know when it is right to take that leap and start flapping your wings hard!

-- Edited by TheHeaths on Tuesday 28th of July 2015 03:46:46 PM

Roving-Dutchy · Guru

I have had friends and neighbours that were always going to retire soon and start doing the things that they have always wanted to do, but they never made it, retire as soon as you can and start to do the things on your bucket list before it's too late.
Cheers
David

leajoy · Veteran Member

A great question Al & Sue and i know where you are coming from. After about 3 years of back and forthing retirement, almost doing it and then getting cold feet, we are finally retiring. Finances have been sorted, resignations put in and come mid September we will be free and hit tge road. Only short trips till the end of the year as we have our sons wedding lateron. Next year we will go with no time frame...we hope. We are 63 & 59 at the end of the year. Who knows how we will go with it all but we are over going to work. Not an easy decision but once we made it our shoulders have been much lighter. Goodluck

Spydermann · Senior Member

Don't die wondering.

Gus1949 · Senior Member

Al & Sue

What you have read in these posts are messages from people who have successfully merged from work to retirement. What isn't here are stories from people who were not successful with the transition.

You need to think seriously about your current lifestyle, look at what you spend your money on now and how much. How much of you current lifestyle can you live without and having established that, can you afford to fund what's left. If you are not disciplined money managers you will need to be once the cash flow from your job ceases.

We have retired (at 64 &61) and love the lifestyle like so many on this chat site and don't miss employed work for one minute.

Rowan

Felicia · Guru

Al & Sue,

Don't know if this will help but we were advised to keep a record of every cent we spent for 3 to 6 months and see if we could still afford it when we retired, or what we could do without. We have been retired for the last 7 months. It really depends on what you want.

Lynda

Spydermann · Senior Member

If you pay for everything on credit card, EFTPOS or auto debit you have a good record of what you spend. Rarely use cash these days. If you keep your credit card in credit, you actually get (pathetic) interest on it. Used to be fee free too but I just opt for the cheapest no-frills card these days.

Saw a guy in a pub last week in a round of 4. Every time it was his shout, he used his tap & go card. Would I want a record of what I'd drank for the wife to review? Probably not.

Phil C · Guru

I personally pulled the pin at 62 years of age and the bride at 63, you get to a point where enough is enough.. We cashed our super, sold everything went out and bought a caravan and a ute and bingo... one fantastic life...

BTW welcome to the forum..

kandagal · Guru

21 years ago we hit the road to do a 12 month trip. Never did find our way back. The secret is not to owe anyone anything. We no debts dragging on you can live relatively cheaply.
Alice

Hey Jim · Guru

Hi Al & Sue,

Point One>..............We don't know your financial position. And now one here needs to know either. Play your cards close to your chess.

Point two> .............ONE, Never sells your Castle. You will need to call home, some where...... AllWAYS. ..........................Nothing will increase in capital gain like your home.

Point Three>........... Pay out your mortgage FIRST.............. If you have not done so by now.

Your castle is your biggest asset. Lease it out 6- 12 months =........... extra income............... and put your belongings into storeage,... and take a break to see if you are ready to GO first.

Point Four>......... If you are self employed ................... DON'T sign OFF. ABN + your Reg business. You both can still claim tax deductions even if you are working casualy till.......... way into the future.

Point Five> ........If you Can't do it yourselves ......Pay to get the right advice.

Point Six>.......... KEEP YOUR destiny in your own control........................................FULL STOP.

Enjoy your lives............. You both have worked hard for what you both have............. And that's one another.

We have both now seen the light and we are on our way at 59 & 61. We have done it Bloody hard and MR Abbott & CO can get STUFFED.

We are both professionals in our own wright.

Warm Regards Jim & Lambie

-- Edited by Hey Jim on Tuesday 28th of July 2015 08:46:33 PM

-- Edited by Hey Jim on Wednesday 29th of July 2015 06:33:32 AM

Sarge9 · Senior Member

Al & Sue, great question,

I read all the replies looking for the magic answer....

I have prevaricated from 53/54 till now 59... easy answer now, do the LSL @ 1/2 pay and bingo I will be 60 and tax free... there has always been enough money in my Super (apparently) we did the online Money Smart thingo the Government provides, it was very insightful, (SHE manages the ALL the money & bills) I had no real idea what we spent, we have done some 6 & 8 weeks van tours, we know that costs (us) about $55 per day fuel and fees... retirement is definitely affordable, but going to work is still OK too. Lots of my peers got out at 53-57 all on the same money, they say life is grand on the outside... I still have not committed and am envious of those who have gone... 40 plus years in one job, perhaps I don't change well???

And everyone tells me there are hundreds of jobs out there if I needed to top up the cash box.... cry

Good luck

Sarge

Grumpytoo · Senior Member

The first question is can you afford it. Then it is a matter of whether the life you are leading now is offering satisfaction. If so keep at it. Only retire when work gets in the way of what you really want to do.

Izabarack · Guru

Depends what you mean by retirement. If you mean having the opportunity to do what ever you want every day, then some sort of financial independence seems to be the most important consideration. How much is enough to retire on? Common question, Most find, after they retire, that they need a lot less than what they have. Many make do on an age pension alone. Not that comfortable but they show that it can be done. What do you want to do when you "retire"? If you have a pretty good idea of that, then maybe work until you have enough to support that lifestyle goal then get to it before it is too late.

Iza

leestevo · Senior Member

My husband had to retire at 45 due to heart attack and other illnesses, now his 51. We had access to his super bought the caravan, downsized our house...now we rented out and that pays our small mortgage. My husband gets a pension. Im 44 yrs old and I gave up my full-time stressfull job and now i find part-time work on the road to help out. We are permanently on the road since 2010 and we love it. Do it now if you can afford it. Our life is now stress free.

sandgrooper1 · Senior Member

Hi All,

Thank you all for taking time to reply to our query. Some excellent points that we had not considered previously and we will endevour to apply some of the advice given.

We do still have a mortgage which is a headache but should be solved in next 5 to 7 years. Nil other loans both cars, caravan etc owned outright.

My wife and I are both of the opinion we need a homebase so we really need to pay it off before leaving work.

We are pumping as much as we can into super but as I said it is the subject of continual rule changes re the pension age, preservation age etc etc.

Another point we considered was the new assets test limits which to my mind seem to make carrying on working to far a big negative. We will no doubt fall into the group of having a bit to much but not enough to be totally free of requiring a OAP top up along the way. The way things are structured from Jan 2017 its almost like(read to me/us it is definately like) being penalised for having to much which makes us think about going a bit earlier and spending our super/savings on what we would prefer to do with our time.
From my own rather simplistic analysis(in current enviroment of low interest rates)you need somewhere around 1.5 mill to be self funded right through retirement. We wont get that far even if we keep going till 67. I read the OAP was equivilent to having somewhere around a million dollars invested re earnings to live on.

I have worked for the same employer for 26 years now and if I leave...no going back hence wanting/needing to get it right first time.(I would add that we both could leave our jobs tomorrow and not miss them)

Thank you for indulging in my whimsical musings of life post work.

Cheers AL

Hydeeeho · Senior Member

Hi All

The bride and I retired at 59 years and have never been happier

brickies · Guru

You must be debt free before you jump

TheHeaths · Veteran Member

By the way Al, don't think I didn't think long and hard about our move.

We were only talking this morning as we went to see my Mum and Dad, how you can only plan based on today, and what you know. I don't expect the doubt to go for some little while yet with our own decision.

The rules, the markets, the politicians. All will change as we move along, but without a well tuned crystal ball, only today's information is certain. You will know when it is right.

And don't believe or fixate on the figure of $1.5 million as the magic number. The magic number is actually what YOU think is needed to generate the income YOU consider right for yourselves. We are well short of this number, but at present it is generating more than I see as necessary AT THE MOMENT AND UNDER CURRENT CONDITIONS.

As a guide, in my industry based super fund, the $1.5 million, invested in a reasonably conservative split, would be generating in excess of $125 k per year over the past couple of years.

Felicia · Guru

Al, don't know the answer to this, maybe someone else will. Is the right course to pump money into your super or to pay of your house. Can you down size?

Lynda

Hey Jim · Guru

brickies wrote:
You must be debt free before you jump

Hi again Al & sue,

As above Debt Free.

You are an employee. ...............So Think.............Ok. First pay out TOTAL on your mortgage.

Then ask yourselves we have XYZ. ????????????????..............

Bigest asset = House = income + capital gains year after year.= Positive................ Income rental = money to live on....... Add it up.

Sub track out goings = .............?????..........+ investments = xyz ................. bank interest . ...........Shares in good top 100 on the ASX = How much generated income......

Cash on hand = XYZ. ............Hold as a back up only. Do not let cash drip through your fingers.

IF you have rental property Fantastic. But few and far between.

Super = Leave to accumulate for now.

So Please don't be frightened of the world out side of employment.

You are both young enough to add to your income with a small amount of casual / part time work to add to total income + what you both have on hand. = Now Lets GO.

Guys theirs MUCH MORE TO LIFE THEN WORKING TILL ONE OR BOTH DROP.

WE now look at it this way At 60 We have 25 good years only to have lots FUN. You are a long time dead. And when your dead you will get no thanks for keep on keeping on in the work force.

Warm Regards Hey Jim & Lambie

george57 · Senior Member

As you can only contribute a certain amount into your super before you are heavily taxed...the advice given to me was to do that...then put the rest onto your mortgage..... makes sense. but I'm putting all onto the mortgage as being single I want to be debt free ASAP....

sandgrooper1 · Senior Member

Hi everyone,

Thank you for your replies. I think we will look at where we are in about 5 years or so...sounds a long time but no doubt will pass quickly.

That will get me another complement of LSL which I am due just before I turn 57.

No doubt the rules will change again just to stuff us up!!!

Cheers Al and Sue