Smart Money Strategy

CHAPTER 12The Retirement Strategies

Retirement means different things to different people. For some, it means giving up full-time work; for others, it means moving to part-time work or perhaps starting something new. For the purposes of strategy stacking, we define retirement as when a person is ready to access their superannuation, either as an income, a lump sum or perhaps a mix of both. Remember that this may be done in conjunction with work or contracting because, for me, as soon as you can say no to work and maintain your lifestyle with the resources you have, you have retired.

Retirement is a significant change for your financial life. You're making the decision to give up a regular pay cheque that has paid for the lifestyle you've so far enjoyed. It's a big decision, and you'll likely have questions to figure out first. Are you ready to give up your pay cheque right now? Will you be ready to give up your pay cheque in the future? How much do you need?

Unlike the retirement of our grandparents and prior generations, retirement today may not mean you give up work completely. Many Australians continue to work into their late 60s and into their 70s, often on a part-time or casual basis. By continuing to work, they can continue to earn an income and contribute to their super (covered in Chapter 11), and also turn some of their super into a pension to fund their lifestyle. Some Australians also start a pension from their super much earlier too as they choose to transition ...