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Financial Planning

Making retirement funding last the distance

04 November 2020

Money & Life team

Money & Life contributors draw on their diverse range of experience to present you with insights and guidance that will help you manage your financial wellbeing, achieve your lifestyle goals and plan for your financial future.

We’ve partnered with OneVue to share the Secrets of Money Masters, a series highlighting the stories of everyday Australians and how they have worked with a financial planner to navigate difficult financial circumstances and come out feeling more informed, empowered and secure in their financial futures.

We are all living longer, fuller lives, and for many people retirement may now span almost as long as our working careers. We are at a tipping point, with a huge number of baby boomers set to retire and a global pandemic changing the landscape.

The statistics paint a concerning picture, with the average Australian set to outlive their money by 11 years.

Historically, 70% of intergenerational wealth transfers fail because of poor family communication or lack of planning for the future.

So, the burning question is: how do we make retirement funding last the distance?

Kate and Tony’s story

Kate and Tony have been married for 18 years. They have two children, Olivia and David, who are 11 and 16 years old respectively, and both are enrolled at high-end private schools. Tony, who is nearing 60, also has two adult children from his first marriage. Kate is 52 and has faced cancer twice in the past 16 years – once in the brain, and breast cancer – though she is currently in remission.

Financially, Kate and Tony have done well through property investing. They own their own home in Lane Cove, as well as three investment properties around Australia. Tony and Kate run their own small business from home.

They have some disposable income to invest, and also have quite large inheritances coming from both Kate and Tony’s parents in the future.

They know now is the time to look carefully at their retirement plan. Their dream is to retire to Port Stephens once their children have finished high school, and while they feel that they have a very good understanding of the property market, they’re interested in learning ways to diversify their investment strategy. Outside of their property investments, they also own some direct shares, but are open to other ways to plan their retirement, grow their wealth, and leave their children a legacy.

The Secrets of Money Masters series partnered with Orbis Investments and Rod Dickinson AFP® as an expert adviser to take a closer look at Kate and Tony’s situation, their ambitions and have our expert panel provide insights and alternative ideas to help Kate and Tony – and other Australians in similar situations – achieve their retirement goals. You can watch the series here and hear more insights from our panel of experts.