Over shared brunches and dinners with girlfriends, and while raising glasses of wine, the topic of retirement and financial security is becoming impossible to ignore.
Just the other evening, while catching up with some of my university friends, I was taken aback by how many of them, seasoned professionals in the finance industry, despite their experiences and successful careers, found the intricacies of retirement planning, superannuation and tax rules somewhat elusive. It got me wondering: If them, with all their collective wisdom, have questions about it, how do other women our age feel? The importance of starting early, getting informed, and having open discussions on the subject couldn’t be clearer.
Often, in my financial planning practice, women, particularly those approaching their 50s, seek advice and reassurance on their retirement plans. From my experience, here’s what successful women embrace before retiring:
- Proactivity:
Successful women don’t wait for things to happen. They actively manage their financial lives, setting clear retirement goals and vigorously chasing them. They gather data, analyse their current financial situation, and map out an actionable plan. Whether they collaborate with a financial advisor or prefer the DIY route, they’re always in the driver’s seat, making informed decisions.
- Positive Attitude:
Life throws curveballs, and the financial journey is no exception. Stock market volatilities, sudden unexpected expenses, or economic downturns can rattle the best of us. However, resilient women handle these with grace, viewing them as temporary setbacks rather than insurmountable obstacles. They approach challenges with constructive solutions, mitigating worries with actionable strategies.
- Joy in the Journey:
Financial discipline doesn’t translate to constant self-deprivation. Successful women recognize the importance of balance. They set aside funds for recreation, ensuring they enjoy life’s pleasures while staying on track with their financial goals. Whether it’s an exotic vacation, a weekend spa retreat, or a simple gourmet meal, they indulge, guilt-free, every once in a while.
- Constant Learning:
The finance world is dynamic. Rules evolve, markets fluctuate, and investment avenues diversify. Hence, staying updated is not just beneficial; it’s crucial. Successful women actively participate in workshops, read up on finance literature, or even join community groups focused on money matters, ensuring they’re always in the know.
~Novel Serialisation: Heavens Fire~
- Accountability:
Holding oneself accountable is the hallmark of financial maturity. Recognizing past missteps, learning from them, and ensuring they aren’t repeated is what sets successful women apart. They don’t play the blame game but take responsibility and set out to make amends.
- Budgeting and Investing:
Earning is but one facet of financial health. Successful women understand the importance of efficient money management. They budget, ensuring they live within their means. What’s more, they’re astute investors, channelling their savings into lucrative avenues, be it superannuation, shares, real estate, or managed funds.
- Resilience:
The path to financial independence is laden with challenges. Yet, undeterred, successful women march on, their eyes firmly set on their goals, knowing that persistence today will ensure peace tomorrow.
While the twenties or thirties might seem too early for retirement planning, the reality is, the sooner, the better. However, by your 50s, the need becomes more pressing. It’s a pivotal decade to reassess, realign, and rev up your financial engines.
Are you ready to embrace your potential as a successful woman? If so, take these essential steps into consideration:
- Clear Retirement Goals: Define your post-retirement lifestyle. Whether you envision tranquil beachside living or bustling city life, having clear goals can dictate your savings strategy. Calculate the finances required to sustain your desired retirement lifestyle. Consider your living arrangements: Do you intend to relocate, downsize, or remain in your current residence? Assess whether your home will suit your needs when you’re 80. Keep in mind: A single-level house could be a more practical choice.
- Master Your Cash Flow: Regular financial audits can highlight money drains and savings opportunities. Aim for a substantial emergency fund, ensuring unforeseen expenses don’t derail your financial journey.
- Maximize and Optimise your Superannuation: Superannuation offers a tax-efficient strategy to bolster your retirement savings, reduce your tax burden, and generate a steady stream of passive income. Contribute consistently, compare your account’s performance to benchmarks, and avoid exorbitant fees. Align your super with your values. It will ensure your super works as hard as you do.
- Reassess Insurances: Periodically review your policies. Retain only necessary policies, like avoiding hefty life insurance premiums if there are no dependents or debts. With evolving life circumstances, some might no longer be needed.
- Manage Debts: A debt-free retirement is not just a dream; it’s a possibility with prudent planning. Examine your mortgage interest rate to ensure it aligns with market rates. Redirect your savings into an offset account, and boost your mortgage payments with a clear goal: stepping into retirement without the weight of debt.
- Seek Expertise: While self-management is commendable, collaborating with an experienced, independent financial adviser can guide you through your options, helping you pave the path to optimal financial well-being. If you’re contemplating the need for an adviser, consider this: While many women traditionally entrust financial decisions to the men in their lives – be it fathers, husbands, brothers, or sons – this approach isn’t without its pitfalls. Tales of elderly abuse, divorces, and financial downturns remind us of the importance of individual agency. So, reflect on these two pivotal questions: Am I equipped to make informed financial decisions? Do I possess the comprehensive knowledge to navigate these choices?”
In summary, while every age offers unique financial challenges and opportunities, your 50s present a golden chance to fortify your retirement plans. As the retirement horizon approaches, ensuring you’re well-equipped can promise a sunset phase that’s as fulfilling as the years that led up to it.
What does a financially secure retirement look like to you? How equipped are you to embrace it? And crucially, what steps will you take today to ensure an enjoyable tomorrow?
By Natallia Smith
About the author
Natallia Smith (MBus (Bnkg & Fin), AdvDip FS (FP), BPsych) is the visionary behind TruWealth Advice—a financial advice firm committed to guiding Australian women towards financial independence and security. Informed by her unique journey as an immigrant, Natallia seamlessly blends her background in psychology with financial expertise to design pathways for sustained confidence and security. With a 20-year tenure in the financial services industry and rich academic credentials, she supports pre-retiree single women from varied backgrounds. Her dedication to the field was recently acknowledged as she became a finalist in the ‘Financial Adviser of the Year’ category at The Women in Finance Awards 2023. A proactive member of The Financial Advice Association Australia (FAAA) and the Boutique Financial Planning Association (BFP) committee, Natallia’s ethos is grounded in bespoke advice and unwavering dedication to her clients’ well-being.
