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A super balance of $1 million is often presented as the magic number for a comfortable retirement. But most experts say it depends on your lifestyle and retirement expectations. Variables include whether you own your own home outright, your health and dependents who need or may need your financial assistance. The size of your retirement nest egg will be determined by your individual goals and circumstances. But there are a number of practical strategies you can use to boost your super before retirement: Delaying retirement: For the 2024-25 financial year, employers are required to contribute 11.5% of your salary to your super account. This is known as the superannuation guarantee (SG) contribution. Postponing retirement, to work a little longer, or continuing to work at reduced hours, can help with financial security by receiving further employer contributions to your superannuation. Consider salary sacrificing: Salary sacrificing can be an effective strategy to boost your superannuation savings. It allows you to arrange with your employer to make additional before-tax contributions to your super account, which are taxed at a flat rate of 15%. These contributions are included in the concessional (before-tax) contribution cap, which is currently set at $30,000 per annum and includes employer contributions such as superannuation guarantee contributions, as well as personal contributions for which you claim a tax deduction. Make after-tax contributions: After-tax contributions can be an effective way to boost your super. These contributions are made from your after-tax income and are included in the non-concessional (after-tax) contributions cap. The current cap is $120,000 per annum. You may be able to bring forward up to three years of after-tax contributions, depending on your total super balance and age. Spouse contributions: If your spouse is a low income earner (earning up to $40,000 per year), you can make super contributions on their behalf and claim a tax offset of up to $540 per annum. This tax offset is calculated as 18% of the contributions made. To be eligible, you must be married or in a de facto relationship with your partner and both of you must be Australian residents. Government co-contribution: If you earn less than $60,400 per year and make after-tax super contributions, you may be eligible for a government co-contribution of up to $500 per year. This co-contribution is paid directly into your super account after you’ve lodged your tax return for the year. Using these strategies can help you maximise your super and retire comfortably. However, as a general starting point, you can use the Money Smart calculator to work out: How long your account-based pension will last How investment returns will affect your pension balance.   Source: Perpetual

Healthcare fell out of favour with investors following the pandemic, but a brighter earnings outlook and strong, long-term tailwinds have renewed interest. BlackRock explain why adding exposure to healthcare may be beneficial this year, despite the impacts of potential US political pressures. Earnings in recovery As we entered 2024, the healthcare sector began transitioning back to a more stable earnings profile after the most severe earnings recession in its history, which culminated in 2023. While the pandemic led to unforeseen profits for COVID-19 vaccine producers and research labs, these earnings then dramatically receded as the world recovered from the pandemic (see chart below). Global healthcare earnings inflection Source: BlackRock, FactSet, December 2024 Last year, an average of 75% of healthcare companies exceeded earnings expectations in the first three quarters of the year – the highest percentage of all global sectors, including technology. As a result, BlackRock saw local investor sentiment in the sector begin to recover in 2024, with around $80 million of inflows to the iShares Global Healthcare ETF (IXJ) last year – within their top 20 exposures for the year on an inflow basis. Looking to 2025 projected earnings, the sector is expected to rebound even further, recording the highest year on year growth in 18 years (excluding during COVID-19). So far, in the US healthcare has been one of the best performing sectors in the S&P 500 Index for the year to date. Innovation and regulation Political changes in the US have understandably created investor nerves that the rosy outlook for the sector could be negatively impacted this year. While leadership within key federal agencies will no doubt shape regulatory agendas around issues like vaccines, drug approvals and pricing, BlackRock think immediate or drastic policy changes in the US are unlikely due to existing checks and balances. For instance, vaccine mandates are determined on state and local levels in the US, with the federal government acting in an advisory capacity only, and in order to remove a vaccine or drug from the market, scientific inadequacy must be proven in the courts. More broadly, they believe the regulatory agenda of the new US administration could lead to more flexibility around healthcare mergers and acquisitions, potentially easing scrutiny on patents and delivering sector-wide benefits. Beyond regulatory issues, BlackRock think innovation in areas like obesity medication, surgical robotics and oncology will continue to drive growth in healthcare this year. Glucagon-like peptide-1 agonists, or GLP-1s, have emerged as one of the most significant and contemporary therapeutic trends influencing the healthcare landscape in recent years. Despite a 2000% increase in GLP-1 users from 2021-2023, only 0.1% of qualifying obese patients worldwide are so far using GLP-1s, indicating a huge ongoing runway for customer take-up (see chart below). Expanding into offering the medications orally could also slash manufacturing costs for providers, with almost half the weight loss drugs currently in development being in tablet form. GLP-1 penetration of obesity Source: Novo Nordisk, December 2023 Additionally, robotic assisted surgeries continue to be a strong growth story, with the global surgical robotics market expected to grow by US$16 billion over the next seven years. Oncology is also a hotbed of innovation, with over 100 new cancer treatments including antibody and cell therapies expected to launch within the next five years, driving nearly US$400 billion in pharmaceutical spending by 2028. A balanced diet in your portfolio As well as benefiting from a number of long-term growth trends, adding global healthcare exposure to a portfolio can help to boost diversification and potentially reduce volatility when broad equity markets sell off. Investors with an existing portfolio of broad Australian and global equities will typically have less exposure to healthcare on a relative basis. For instance, the ASX 200 Index is made up of approximately 10% healthcare stocks versus 19% materials and 34% financials, while the MSCI World Index has 11% healthcare exposure compared to 25% technology and 17% financials. Healthcare exposure may also be useful to consider for investors with less tolerance to short-term volatility in their equity allocations. Well known as a defensive sector, it may help to offset negative returns in a share market downturn – as seen in the chart below, which shows the index tracked by the iShares Global Healthcare ETF (IXJ) outperforming in the last 3 calendar years where global equity markets generated a negative return. Source: MSCI/S&P/BlackRock data, as at 31 January 2025. Past performance is not a reliable indicator of future performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. With the sector poised for significant growth and transformation, as well as being a useful defensive play and portfolio diversifier, BlackRock believe healthcare is well worth investor consideration in 2025. Source: BlackRock

Super is only for when you retire, right? Well not quite. There are a few times in life when you might have a valid reason to get hold of some of your super savings. When is it time to access your super? Super is your savings for retirement. So it makes sense that there is an age you have to reach to get access to the funds you’ve saved. When you reach what we call your preservation age, you can access your super if you permanently retire. From 1 July 2024 this is age 60 for everyone. So you’re old enough, now what? Once you’ve celebrated your 60th birthday, there’s another box to tick before you get access to your super. We call this a condition of release and leaving the workforce for good is one of these conditions. So if you retire for good after reaching your preservation age, you can get your hands on your super. If you change jobs on or after turning 60, you can continue to work and also access your super. Or you can wait until you reach age 65 and access your super, even if you’re still working. If you become totally and permanently disabled before your preservation age, you’ll also be able to access your super. Can you access your super before age 60? Yes. But the Federal Government has very strict guidelines on when and why you can access you super early. There are some other circumstances where you can apply to the Australian Tax Office to access a limited amount under compassionate grounds from your super before retirement, when you are in need of financial help to: Stop you from losing a home you own because you can’t pay the mortgage. Cover the cost of medical treatment, palliative care and/or disability services for you or a dependent. Cover the cost of a funeral or burial arrangements for a dependent. You can also apply to your super fund for early access if you: Are experiencing severe financial hardship, can’t pay basic expenses for you and your family and have been paid income support benefits like JobSeeker continuously for at least 26 weeks. Have a terminal illness. Become incapacitated, either, temporarily or permanently. Is it a problem to access super early? Any amount you take from super now is less money for when you retire. Of course, if being short of money is forcing hardship and stress on you now, and you have a legitimate reason to access your super, withdrawing an amount to take the pressure off makes sense. But it’s a good idea to get information on your other options before taking this step. Can I really access my super to pay my first home deposit? Yes you can. The First Home Super Saver Scheme (FHSSS) could see you on your way to owning your first home sooner: You can only access any extra payments you have made into super for the purpose of saving for a home loan – and also investment returns those extra savings have created. You can keep these payments in super until you’re ready to buy. While you do this you can be saving on tax – both on the money you’re earning from investing your super savings, which is taxed within super at 15% and from the tax you could save by making extra payments into super from your pre-tax salary – these are called concessional or salary sacrificed contributions. Regular payments into super help you save. Your super may earn better returns than a bank account. Source: MLC

We all know the story: women earn less than men. But even as society and employers work towards closing the gender pay gap, there’s another inequality that women face that’s just as crucial to building their wealth: the investment gap. Why women are not investing their money  According to CoreLogic’s 2025 Women & Property report*, Australian women are underrepresented when it comes to investing, with 40% of women reporting not having any investments, compared to 27.8% of men. AMP’s Deputy Chief Economist, Diana Mousina says it’s the biggest financial mistake she sees women making today. You can see this from a high school age, going to uni and then going into the workforce. Women tend to be more risk averse and they don’t tend to be as into investing and making those investment decisions. That is not a bad thing. There have been studies that show female portfolio managers who manage investments for clients smooth performance out, for example. But from the financial literacy bit for everyday women, it dampens the age that they get into investing and become more interested in it. Why women should be investing We know that time in the market equals money, because of the way that compound interest works. Compound interest refers to the way returns compound on past returns for an investor over a long period. Essentially, it’s your money making more money, which then makes even more money – like a financial snowball rolling downhill, getting bigger and faster. Investing doesn’t have to mean you need thousands of dollars to invest into the share market or into some sort of asset. It can be as simple as investing in $200 and building on that into the future. How to start investing The best way to start is with a budget. Make a financial plan and figure out how much additional spare cash you have for investing. Investing can be in so many assets: housing, shares, superannuation. Even if you don’t have any additional cash right now make sure you are happy with your super fund and understand which portfolio you are invested in. You can also salary sacrifice into your super to help grow your balance even faster. The way that we can invest now is so much more accessible to everyone. You can do it on your smartphone. There are so many platforms that you can use. And it can start from a very small amount. *Source: CoreLogic’s 2025 Women & Property report   Source: AMP

One in four retirees could be thousands of dollars a year further ahead just by claiming one or more key government entitlements as soon as they’re eligible. Are you missing out? Australia’s retirees are missing out on about $3 billion a year in money that could be used to pay essential living expenses — often because they wrongly assume they’re not entitled to it, according to research from Retirement Essentials^. Approximately one quarter of Australia’s 4.1 million retirees apply late or completely miss out on claiming benefits designed to help offset the cost of living. They could be thousands of dollars a year better off just by asking if they’re eligible for one or more of the following government benefits: Age Pension Commonwealth Rent Assistance Pensioner Concession Card Commonwealth Seniors Health Card Government energy bill rebates. One third of all recipients apply for the Age Pension at least a year later than they could have, the Retirement Essentials research showed – and for 16%, the delay is more than three years. Late applications for the Age Pension, Commonwealth Rent Assistance and the Pension Concession Card together resulted in an average cost of $16,800 in lost entitlements per person over 12 months, totalling about $3 billion, the research found. In addition, about a million Australians aged over 67 fail to claim the Commonwealth Seniors Health Card – which is worth an average of $3,000 a year in reduced health and medical costs**. The vast majority of them would be entitled to it, Retirement Essentials found. Government utility bill rebates are also under claimed, according to research from the Melbourne Institute and Roy Morgan. It found two in three concession card holders did not apply for energy bill discounts#, with most of those unaware they might be eligible. Why do retirees delay applying for key benefits? People are often late to apply for key benefits because they wrongly assume they’re not entitled to those benefits. The average delay in applying for the Age Pension alone is 1.1 years, data from Retirement Essentials shows. Reasons for this include: They don’t provide the necessary paperwork. They mistakenly believe missed payments will be backdated. They wrongly assume they need to spend their savings before applying. They wrongly believe they can’t apply if their partner is still working. They mistakenly assume they can’t apply if their partner is not yet of Age Pension age. They are reluctant to rely on government support. They fall through the net for other reasons. Benefits help to offset the cost of living Retirees could be utilising one or more unclaimed government benefits to ease cost pressures, with the cost of living named the number one concern for Australians, according to the 2025 Colonial First State Rethinking Retirement report. While retirees have been feeling the pinch from rising inflation in recent years, data from the Association of Superannuation Funds of Australia released in December* found there was some good news last year, with cost pressures easing slightly in the September quarter. Couples aged around 65 who own their own home now need $73,031 annually to achieve a comfortable retirement, while singles need $51,814, according to ASFA’s Retirement Standard. This equates to $595,000 in superannuation savings for a single homeowner retiring at age 67, and $690,000 for a couple. A modest retirement budget for homeowners would require $47,475 a year for couples and $32,930 for singles annually. This equates to requiring $100,000 in super at age 67 together with Age Pension support. Complex range of rebates available for older Australians There are a range of payments, rebates and concessions available from Commonwealth, state and local governments and private companies designed to offset costs for Age Pension recipients and seniors. Government benefits include utility and rate bill rebates, and transport and travel benefits. Private companies also offer a range of other discounts to holders of state-based Seniors Card holders. ^ Research on the cost of late applications for the Age Pension and related government benefits from Retirement Essentials and Link Advice, 2024.  ** Research on Commonwealth Seniors Health Card uptake from Retirement Essentials, 2025.  # Research on energy concession awareness among concession card holders from the Melbourne Institute and Roy Morgan commissioned by The Energy Charter, June 2024.  ^^ CFS research, for which 2,250 Australians were surveyed in 2024 on their attitudes towards retirement.  * Association of Superannuation Funds of Australia (ASFA) Retirement Standard, 12 months to September 30, 2024. Source: Colonial First State

A super balance of $1 million is often presented as the magic number for a comfortable retirement. But most experts say it depends on your lifestyle and retirement expectations. Variables include whether you own your own home outright, your health and dependents who need or may need your financial assistance. The size of your retirement nest egg will be determined by your individual goals and circumstances. But there are a number of practical strategies you can use to boost your super before retirement: Delaying retirement: For the 2024-25 financial year, employers are required to contribute 11.5% of your salary to your super account. This is known as the superannuation guarantee (SG) contribution. Postponing retirement, to work a little longer, or continuing to work at reduced hours, can help with financial security by receiving further employer contributions to your superannuation. Consider salary sacrificing: Salary sacrificing can be an effective strategy to boost your superannuation savings. It allows you to arrange with your employer to make additional before-tax contributions to your super account, which are taxed at a flat rate of 15%. These contributions are included in the concessional (before-tax) contribution cap, which is currently set at $30,000 per annum and includes employer contributions such as superannuation guarantee contributions, as well as personal contributions for which you claim a tax deduction. Make after-tax contributions: After-tax contributions can be an effective way to boost your super. These contributions are made from your after-tax income and are included in the non-concessional (after-tax) contributions cap. The current cap is $120,000 per annum. You may be able to bring forward up to three years of after-tax contributions, depending on your total super balance and age. Spouse contributions: If your spouse is a low income earner (earning up to $40,000 per year), you can make super contributions on their behalf and claim a tax offset of up to $540 per annum. This tax offset is calculated as 18% of the contributions made. To be eligible, you must be married or in a de facto relationship with your partner and both of you must be Australian residents. Government co-contribution: If you earn less than $60,400 per year and make after-tax super contributions, you may be eligible for a government co-contribution of up to $500 per year. This co-contribution is paid directly into your super account after you’ve lodged your tax return for the year. Using these strategies can help you maximise your super and retire comfortably. However, as a general starting point, you can use the Money Smart calculator to work out: How long your account-based pension will last How investment returns will affect your pension balance.   Source: Perpetual

Some of us may help provide assistance to our ageing parents or other relatives in the future. That time may bring a range of emotional and physical challenges. Planning ahead may help relieve stress down the track. Here are three suggestions that may make a difference. Talk about your parents’ future It may not be an easy discussion, but knowing what your parents want can help later. Ask them about the type of care and living arrangements they want. Find out about the different types of care they can afford. Think through whether you will be able to physically and mentally offer the support they require. This is an important but often overlooked consideration. It also helps to establish trigger points. Being unable to manage a garden or a dementia diagnosis and clear signs of memory loss may be time to change care arrangements. This process is about helping your parents to state their wishes while they still can. They can also take this information to specialists, such as their financial advisers, accountants and lawyers. Knowing this information can also help you plan ahead if you need to offer financial support. Setting up a power of attorney and enduring guardianship You never know what circumstances life may send your parents’ way that mean someone else needs to take care of them or their finances. At some point, some of us might not be able to go to a bank or make an informed decision about our care. Which is why appointing a power of attorney and setting up enduring guardianship documents can be important. This is a trust relationship, and your relatives should carefully consider the right person to appoint. It’s also important not to leave this until it’s too late. It’s difficult for someone suffering from mental deterioration to provide informed consent about changes to their finances. Setting up these documents before problems arise can protect ageing relatives and their families. Establishing clear records of finances and assets Finances and assets are a sensitive topic, which could be tough to discuss. This is understandable, but you can still help them plan by encouraging them to set up clear records of what assets or debts they have, as well as contact details for institutions they use along with details about any financial advisers, accountants, lawyers and other specialists with which they have relationships. Having clear documentation can also help down the track. For example, it can ensure any debts are attended to and avoid unexpected debt collection notices for bills that would have been covered at the repayment time if you’d known about it. Or it can help to identify funds to cover medical expenses or nursing care when needed. Being prepared can offer you and your relative’s confidence about their options for whatever the future brings, even if it feels confronting at first. It can also make difficult times a little less challenging. There is a range of tools offered by state trustees and government websites like MoneySmart to help with budgeting and estate planning. Speaking to financial advisers and lawyers can also help. Source: BT

Your future’s on the line. Don’t stay on hold in 2025. Is it March already? It’s time to start nurturing your future self by doing this one thing to get your long-term finances in order. Nine in 10 wealthy Australians are quietly doing it already*, new research from Colonial First State (CFS) shows. If it still feels like you just left 2024 behind, time may be flying by so fast it’s hard to plan for the weekend, let alone for something that may be years or even decades away. New research from CFS bears this out, revealing only two in five* Australians feel prepared for life after work and less than half expect to be able to live comfortably when they get there. Getting on top of your finances is one of the most common new year’s resolutions, set by one in two Australians, according to new research from the government’s Moneysmart website. Despite that, only one person in eight sticks to it. In contrast, new CFS data on the secret strategies of the wealthy indicates that nine in ten of the well to do have set a long-term financial goal, such as identifying the age at which they want to stop working. So, as 2025 gathers momentum, CFS have put together a plan to help you look after your future self by taking one crucial step towards getting your long-term finances in order. The importance of setting a financial goal A key difference between those who have planned well for their long-term future and those who haven’t is making the decision to set a specific, long-term financial goal. This might be the age at which you want to retire. You might want to travel for a year when you stop work. Maybe you’re planning to move or take up a new hobby. Whatever it is, once you’ve got a vision for your long term future, you can establish the short term and medium term goals to help you get there. The long and the short of it Most people will have a mix of short-term and longer-term financial goals that are very personal to their needs. The beauty of setting short-term goals is that once you are in the habit of setting money aside to achieve them, it should be easier to maintain that discipline and direct that money to achieving your longer-term objectives. Short-term goals are things you would expect to achieve within the next five years. These might include paying off credit cards and other higher interest debts, getting your super in order, saving for a holiday, accumulating an emergency fund or buying a car. Medium-term goals are those you might achieve in a five to 20 year time frame. Saving for a house deposit or creating an education fund might fall into this category. Long-term goals might include things like paying off your mortgage, making additional super contributions or investing outside your super.     Get smarter about goal setting When it comes to determining your goals, it’s important to set what are known as SMART goals, which means they should be: Specific Measurable Achievable Realistic Time bound. In practice, rather than aiming to “save more”, an example of a simple, short-term SMART goal might be “set up an automatic deposit of $25 a week to pay off my $1,000 credit card debt by the end of 2025”. How super can help you save We know from the CFS research that the biggest regret of people as they approach retirement is not contributing more to their retirement savings. In fact, it’s the most common reason people feel they are off track financially, experienced by almost three in five Australians. Using your super to save and preserve those savings for when you ultimately stop working, is a great way to help prepare financially for the long term. The earnings your super makes are generally taxed at 15%, which is lower than many people’s marginal tax rate. This means your savings are likely to compound and grow faster. As the earnings on your super are reinvested and taxed at a lower rate than earnings outside super, you can generate returns on your returns, leading to exponential growth over time. Compound returns in action in super Even small, regular contributions to your super can grow significantly. It works even better if you start early and remain consistent, although there are ways to leverage the benefits of super at any age. For example, say you decided to give up one takeaway meal a week, saving $25. If you make a $35 pre-tax voluntary contribution to your super each week (assuming a 30% tax rate this would leave you $25 less in your take home pay), here’s how it could compound and contribute meaningful amounts by the time you retire^: $89,980 if you start at the age of 30 $56,622 if you start at 40 $30,264 if you start at 50. If you set up a salary sacrifice contribution through your employer using pre-tax income, you might not notice much difference to your take home pay after tax is taken into account. Month by month steps to establishing your long-term financial goals So, if you only do one thing for your financial future this month, try setting your financial goals. Then do one more thing each month between now and the end of the financial year to organise your finances so you’re more prepared for when you eventually stop working. MARCH: Set your financial goals Set your short, medium and long term goals, and make them specific, measurable and achievable. How much will you need to retire? Use a Retirement Calculator to determine how much money you will need for the lifestyle you want when you stop working. APRIL: Understand how your super is invested Review your super to ensure it is invested to suit your risk appetite, timeline and financial goals by logging into your account or downloading our mobile app. Growth options may generate more money at a higher level of risk that may … Read more

Ever wondered how the wealthy manage their money and what they do differently from the average Australian? New research* from Colonial First State (CFS) has uncovered seven secret financial habits that will help you build wealth. How do well off Australians create and maintain their wealth? From CFS’ research* over the past two years, there have been seven financial habits identified that set the well heeled apart from the crowd. These habits are the financial equivalent of good dental hygiene. But while most kids are taught about oral health, many Australians are left in the dark when it comes to managing their money. The value of the assets, investments and savings of the relatively wealthy averages around $3.746 million, the data shows – over five times as much as that of the average Australian, at $651,000. Here’s what you can learn from them. Know the goal… and how to get there Wealthy Australians are more likely to set clear financial goals including what they want to achieve and by when. The research indicates 92% of affluent investors are more likely to have identified the age at which they want to retire, compared with 83% of the general population. They’re also more likely to set lifestyle goals and review them to ensure they’re on track. For example, four in five specifically aim for a comfortable or even a luxurious retirement that enables them to travel and eat out – something less than one in two of us do on average. This clarity and preparedness are important in helping them to maintain their standard of living without financial stress, allowing them to travel, enjoy leisure activities and look after themselves as well as their family. In fact, four in five wealthy individuals say they feel prepared for retirement, compared with just two in five of the general population. Think long term Planning for the long haul is another hallmark of the well to do. They are more likely to plan for the future, with 93% thinking long term compared with 87% of the average population. This forward thinking approach helps them make informed decisions about their investments and retirement savings. They’re also 50% more likely to seek help to identify different ways to invest their retirement savings than the general population. Have a thirst for knowledge A desire to educate themselves about money is another defining habit of the well off. They’re almost twice as likely to rate themselves as having a very good or excellent level of financial literacy. They’re also generally more interested in getting help to set financial goals, with 81% seeking help compared with 70% of the average population.   Seek financial advice from professionals Wealthy Australians are more likely to get help from a financial adviser and to talk to them regularly. The research shows 45% of the well to do have an adviser – more than twice the proportion within the general population. Of those who have an adviser, 47% have spoken to their adviser in the past six months and 61% in the past year. This regular communication helps them feel more prepared for retirement. Get involved with super Affluent investors are actively involved with their super. They are much more likely to regularly monitor how their super performs, with 82% doing so compared with just 20% of the population at large. They are also more likely to actively compare the performance of their super fund against competitors, with 49% doing so compared with 32% of the average population. And they’re more likely to review how their super is invested to ensure it meets their needs. This active involvement ensures they can make adjustments as needed to help them stay on track to meet their financial goals. Know how assets are invested Perhaps because of their financial knowledge, wealthy people have a more detailed understanding of how their wealth is invested, and the rate of return and risk profile of their chosen investment options. While one in three Australians on average don’t know how their money is invested, that figure falls to 9% for these individuals. Invest outside super Finally, affluent investors tend to have investments outside their super. They are much more likely to have a diverse portfolio, with 94% having other investments compared with 56% of the general population. The most common investments they hold are shares, owned by 51%, and high interest savings accounts, held by 43%. They are also more likely to have a range of different investment types, also including things like term deposits and even crypto currencies. This diversification provides them with security and helps them spread their risk across different asset types. These seven habits of the relatively wealthy are good lessons for any investor and worth considering if you’re looking to improve the value of your own investments and personal wealth. Source Colonial First State

Many women in their 50s are asking themselves: “How do I prepare for retirement without financial stress? Can I reduce my working hours or transition to a new career without jeopardising my future?” If you’re wondering the same, you’re not alone. The good news is that with the right strategy and advice, you can build financial security while designing a truly fulfilling life. Let’s explore strategies to help you make informed choices. Understanding life expectancy and living arrangements In Australia, a 50-year-old woman today can expect to live until about 87 years. Additionally, many women find themselves living alone as they age. As of 2021, 55% of individuals living alone were women, with half of these women aged 65 or older. If you retire at 60, your retirement savings will need to last for approximately 30 years! So it’s important to ensure you’re prepared for a secure and independent life. Assessing your retirement readiness Envision your retirement lifestyle: Consider where you’d like to live, the activities you’ll pursue, and any travel plans. This vision will help estimate your future expenses. Estimate your expenses: The Association of Superannuation Funds of Australia (ASFA) suggests that, for a comfortable retirement at age 67, single individuals need an annual income of approximately $51,814, while couples require about $73,031. These figures assume home ownership and good health and reflect a typical year of expenses, but you should also remember to account for one time expenses like home improvements, relocation or purchasing a new car. Evaluate your superannuation balance: ASFA recommends a superannuation balance of $595,000 for singles at age 65. However, data indicates that Australian women aged 60 to 64 have an average balance of about $318,203. This gap highlights the need for many women to boost their retirement savings. Identify income sources: Determine where your retirement income will come from, such as superannuation, investments, rental properties, part-time work or government pensions. Diversify your income sources to create long-term financial stability. Plan for emergencies: Set aside accessible funds for unexpected expenses, like medical emergencies or urgent repairs, to avoid disrupting your long-term financial plans. Assess investment risk: As you approach retirement, consider adjusting your investment portfolio to align with your risk tolerance. While growth is essential, preserving capital becomes increasingly important. Seek professional advice: Work with a financial planner to develop a tailored plan that aligns with your goals. Professional guidance can provide clarity and confidence in your financial decisions.     Considering career changes or reduced work hours Contemplating a career shift or reducing work hours in your 50s is common. To ensure these decisions don’t compromise your financial wellbeing: Analyse the financial impact: Understand how a change in income will affect your savings trajectory and retirement timeline. Explore flexible work options: Consider part-time roles or consulting opportunities that provide income while offering flexibility. Upskill or reskill: Invest in education or training to transition into roles that may offer better work life balance or fulfillment. Network actively: Leverage professional networks to discover opportunities that align with your desired career path. Overcoming common roadblocks Several challenges can impede financial goals in later life, including supporting children, caring for elderly parents, health issues or unexpected redundancy. Additionally, self doubt or lack of confidence can hinder proactive planning. To navigate these obstacles: Set clear boundaries: While it’s natural to support loved ones, ensure it doesn’t jeopardise your financial security. Prioritise self care: Attend to your health and wellbeing to maintain the ability to work and enjoy retirement. Stay informed: Educate yourself about financial planning to make informed decisions. Build a support system: Surround yourself with professionals and peers who can offer guidance and encouragement. Enhancing your retirement savings Given that many women have superannuation balances below recommended levels, consider strategies to boost your savings: Make additional super contributions: Take advantage of contribution rules to grow your superannuation. Eliminate debt: Aim to pay off outstanding debts before retirement to reduce financial burdens. Optimise investments: Review your investments to ensure they align with your retirement goals and risk tolerance. Consider government Social Security entitlements: Explore the Age Pension and other government benefits that can supplement your retirement income Approaching retirement and considering career transitions in your 50s requires careful planning and self reflection. By envisioning your future, assessing your financial situation and seeking professional advice, you can make informed decisions that support a comfortable and fulfilling retirement. Remember, it’s never too late to take charge of your financial future. Source: Money & Life