Comfort and Safety

Age 55 – 65

Reducing debt

Tax effective borrowing will still most likely be appropriate but non tax deductible debts should be extinguished during this period.

Building investments and superannuation

Continuing to build investments (with a sensible level of gearing) and maximising contributions to superannuation remain as highly relevant strategies during this time.

Seeking career options to maximise skills and remuneration

Senior career positions will be your first choice during the early stages of this period. Into the sixties, you may well start “winding back” and operating in a consulting capacity as you pass on your wisdom to younger colleagues.

Early stage of retirement planning

A possible winding back of your workload may also coincide with planning your retirement and accessing your superannuation.

Helping the children get established financially

At this stage adult children will be “leaving the nest” and with property prices high, assisting children into the property market may well be on the agenda. There are a number of ways this can be achieved.

Grandchildren – savings/school fees assistance

It may also be desirable to assist your children with school fees for your grandchildren. Particular investments can cater for this in a tax effective manner.

Review personal insurances

In the mid to late stages of this phase, with debt levels likely to be lower and insurance costs becoming higher due to age, it may be appropriate to scale back your personal insurances. The critical need for this protection will most likely have passed.

Review your Will

Regular review of your Will should continue through all life phases.

Focus on health – both physical and mental

It will be important to concentrate on your physical health as this is likely to be the period of life when things can start to go wrong. Making a conscious effort and the time to look after yourself is important. There will also likely be some “mental gymnastics” to perform in coming to grips with a reduced work commitment and considering life after work.

Maximising networks

Extracting maximum benefit from your network in the lead up to backing off!