Life Begins At...

The Retiree Magazine Autumn 2012

Life Begins At.....

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'GOLD WATCH' DAY? PLANNING YOUR - By Zilla Lyons - After 40 years in the workforce a close friend recently enjoyed her last day at work. During the weeks leading up to that final Friday, Lyn had been bursting with excitement. She had her financial plans for retirement well in hand, so preparations instead focused on planning an overseas trip to celebrate the 'off icial end' to her working life. She took some time to prepare her thank you speech to her colleagues at the anticipated farewell celebration and reflected on her last 25 years with that employer. The day she had been talking about for so long had finally arrived! It was no wonder that at her retirement drinks that Friday night she looked as though she had lost the 'wind from her sails'. She seemed exhausted and even a bit flat. I wondered how diff icult the transition would be for me; to leave behind all of those familiar faces, everyday routines and the obligations that add so much stability, security and structure to my days. I was struck by Lyn's take on an old saying in her farewell speech to her colleagues: 'With all change and a little forethought, comes great opportunity'. For years Lyn had been actively planning to make the transition into retirement as stress-free as possible. I reflected on the financial preparations Lyn would have considered. She would have reconfirmed her belief that superannuation off ers one of the best vehicles for saving, where tax eff iciency is the priority. Once satisfied, Lyn would have happily committed as much of her savings to super as her budget and legislation allowed. She knew this to be important whilst she was still in receipt of her salaried income. Naturally she was well insured and her income protection insurance supplied the sense of security she needed to protect her lifestyle and saving capacity, should an illness or accident prevent her from working during those final years. Modelling the eff ects of significant market movements on her probable retirement savings had allowed Lyn to gain a better understanding of her tolerance to risk. Lyn had worked closely with her financial planner who wisely fashioned various scenarios and determined the most appropriate investment choice options to complement her desired retirement lifestyle and budget. My friend is not a big spender so she felt satisfied that she was doing the best she could financially toward achieving her retirement goals. She knew that fulfilment in retirement has many facets. Many a time she had mentioned that although she knew that money would not buy happiness or health, it would go some way towards improving her sense of financial security in retirement. She also knew that extra savings meant more choices with a little extra cheer; you don't have to be a high roller to prepare for a better retirement. Every little bit saved helped ensure Lyn's optimal retirement comfort. Lyn had renewed her will and power of attorney five years before retiring. A few months ago she reviewed those documents again. Once more she felt some relief that at least her estate planning was under control, but noted that she would need to update the written records of the whereabouts of all important documents for family members to access in her absence. Knowing that her savings would be more carefully spent during her retirement years, Lyn planned carefully the painting, plumbing and general maintenance work her home required. She felt a sense of release in uncluttering her home by discarding broken or unwanted appliances, old clothes and general kitsch. She updated her car to a more compact, fuel-eff icient model and planned the road trips she anticipated taking in the first few years of retirement. Transforming her garden to be more sustainable was a timely and relaxing hobby for Lyn and provided the exercise she needed to maintain her health. After all, she knew she would need to be as healthy as possible to enjoy her retirement for longer. Careful plans and a healthy and cheery disposition should see Lyn's life blossom. As Confucius says: 'Change comes bearing gifts'. ZILLA LYONS is regional manager, Australian Catholic Superannuation and Retirement Fund. Phone 1300 658776 or visit www.catholicsuper.com.au for more information. Disclaimer: This superannuation article is for general information only. It does not take into account your personal objectives, financial situation or needs. As a result, you should consider its appropriateness to your own situation and obtain independent financial advice before making any decisions about superannuation. www.theretiree.com.au 153 ZILLA COLUMN

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