When it comes to retirement planning, the biggest asset you have is time. What most people lack is a solid plan to get you to where you want to be. The closer you get to retirement age, the more critical it is to stop thinking and start doing. Getting retirement ready isn’t as simple as swapping your salary for an income stream; there are a lot of moving parts, both emotionally and financially. Regardless of your current assets and income, proactively planning is the best way to ensure the next step you make is the right one. While you may be ready to retire, your super may be telling a different story – here’s what you need to consider to retire right.

When do you want to retire?

Having an idea of when you want to retire will help your advisor determine how much money you’ll need to fund your retirement. In Australia, superannuation only became compulsory in 1992, so there are a lot of Australians who are currently underprepared for retirement. Prolonging your retirement by a few years could help you boost your savings, so it’s essential to plan your ideal retirement age before it creeps up on you. When it comes to answering this question, it’s important to consider your current financial situation, including how much super you currently have. You’ll also need to factor in whether you own your home outright, how ready you are to stop working, as well as your health and potential medical expenses.

How will you fund your retirement?

While every situation is different, it’s more than likely your retirement will be funded by your superannuation. At the moment, employers are legally required to contribute 9.5% of an employee’s gross income into super. Depending on your goals, these contributions may not be enough. Before you make plans, it’s important to seek professional advice to ensure you’ve got enough money to fund your lifestyle in retirement. When you take into account your income, assets and debts, you may want to consider making additional contributions to your super. You may also consider downsizing and releasing your assets, salary sacrificing or contemplating a transition to retirement strategy. There’s no one-size fits all strategy; it’s about getting the right advice for your current circumstances.

What you can do right now

Outside of the family home, super is the largest asset most people own. While you may not be ready to retire today, there are six steps you can take to get retirement ready:

  1. Voluntary contributions

Depending on your age and current income, it may be tax effective to make voluntary contributions to your super. Be mindful that the ATO have certain thresholds and provisions in place, so always get advice before topping up your balance.

  1. Reduce your debt

While there’s a time and place for debt, the closer you get to retirement, the less it serves you. Without a steady income to pay it off, debt can eat into your nest egg and leave you with less.

  1. Consolidate your super

The more accounts you have, the more fees you’re paying; over a working lifetime, hidden costs can cost you dearly.

  1. Map out your assets

To allow for better retirement planning, take the time to map out your assets, including your superannuation balances.

  1. Analyse your investment options

As investments differ for every life stage, planning an investment portfolio requires careful consideration, strategy and analysis.

  1. Seek professional advice

AD Wealth is a privately owned financial planning firm with a hands-on approach to wealth management. Working by your side, we put your needs first and proactively seek to build a solid asset base that will meet your financial and lifestyle goals. With over three decades of experience, we’ve learned a lot about people and what drives them. This knowledge underpins each of our wealth creation strategies and sets us apart from others in the field.

When should you start doing something about your retirement planning?


Call us or email us for free initial consultation to see how we can help to sort out all your retirement planning needs.

Build Your Business – Protect Your Future.

As a business owner, there are many issues you need to consider, including taxation, legislation, protecting your wealth and assets and managing risks. Your financial plan should outline how you intend to manage these issues and what you have done to minimise their impact on the business and you personally.
This booklet has been developed to help you understand these various risks, as well as learn how to help your organisation become ‘business ready’ to reduce the impact of unplanned events – we want to help you stay in business!
Click on the link to to find out which options best suit your business and personal needs.
Business Insurance – Ebook

Income Protection – It’s not just Work. It’s Life.

We take some of the best things in life for granted. The ability to earn an income can be one of them. So how would you feel if it was lost or taken away?
The attached guide will provide you with all the key considerations when it comes to protecting your income.
Click on the link to read the guide that will have major implications on your income and your life.
AD Wealth – IP ebook


Super Reforms – What they could mean for you.

Some important changes will be made to concessional and non-concessional contributions, as well as benefits that can be received from super.
The attached guide will provide you with all the important changes and also the key opportunities for you to grow your super that are available to you both before and after 30 June 2017.
Click on the link to read the guide that could have major implications on your superannuation.

4 key elements of a personalised risk management strategy

Managing risk is an important part of running a business, but many people often forget to plan for unforeseen circumstances in their personal life. Accidents, illnesses or bereavements can strike at any time, which could have an impact on your financial security if the household’s main income earner has to take a considerable amount of time away from work.

In worst-case scenarios, the death of a loved one could create significant money troubles for those affected in addition to the emotional strain. While you may be quick to insure your car, house and other big-ticket items and possessions, you may neglect a personalised risk management plan for yourself and other family members.

Underinsurance in Australia

Figures from Rice Warner showed the average amount of insurance required to cover a middle-income Australian family is $680,000, yet the median level of life insurance is just $258,000 – a gap of $422,000. According to Rice Warner estimates, the total underinsurance gap for the main life insurances was $1,811 billion in 2014.

So what risk management options are available? And how can you build a comprehensive strategy to ensure your family are effectively provided for in the event that your main source of income comes under threat?

Here are three types of risk management solution that can give you a higher level of financial support.

  1. Life insurance

Australia’s life insurance market is worth $61 billion in revenues, according to figures from IBISWorld. Rice Warner believes underinsurance for life insurance costs the country’s federal government approximately $57 million, and the firm claimed typical superannuation funds don’t meet the needs of many families.

Calculating what life insurance coverage you and your family require can be a complex task that takes into account many factors, such as your age, health, family size and earning potential. You should therefore discuss your needs with an experienced financial adviser who can find the right policy that’s tailored to your specific circumstances.

  1. Total permanent disability cover

If you suffer an injury or illness that stops you from ever returning to the workplace you may be classified as having a total and permanent disability (TPD). Your disability may prevent you from doing any work at all or specifically a job that you previously had the training, experience or skills to perform.

Statistics from the Australian Network on Disability show that approximately one-in-five people in the country have some form of disability. However, as the name suggests, TPDs are usually defined as disabilities that stay with someone for a lifetime and have a considerable impact on their standard of living.

  1. Income protection

Effective financial planning should cover both short- and long-term needs. This means having a retirement strategy, as well as a safety net for the immediate future if you encounter money difficulties.

Income protection is a type of cover that provides you with financial security if you can’t work due to temporary injuries or sicknesses. Unlike TPD insurance, which is often a one-off lump sum payment, income protection is usually paid on a monthly basis and most policies have claim restrictions. For example, you may receive 75 per cent of your regular salary over a specified time period, such as five years.

  1. Trauma Insurance

If you become ill, Trauma insurance can pay you a lump sum to free you from financial worry so you can focus solely on getting better. The types of illnesses that can be covered are:

  • Cancers,
  • Heart disease,
  • Strokes,
  • Multiple sclerosis,
  • Alzheimer’s,
  • Motor neurone disease, and many more.

Trauma cover will pay a lump sum benefit to help you stay on top of debts, pay for medical bills and generally help you maintain a reasonable standard of living while you’re recovering.

Finding the right risk management strategy

It’s impossible to predict the future, but that doesn’t mean you should take your health and the health of your family for granted. This means you should seek advice on a personalised risk management strategy in addition to any retirement planning or wealth management needs you have.

To discuss your circumstances in more detail, please contact us today on (03) 9349 3499 or