Retiring Financially Free


By Dale Gillham | Published 05 March 2018



If we are an advanced society, how is it that so many people struggle financially?  Right now, around 75% of people are retiring on a pension, more than half on a full pension and Australia’s welfare budget is spiralling higher each year. So, how much do you need to retire financially free?

Would it surprise you to know that mature-aged women are in the highest risk category to retire with less than the experts say is necessary to fund their retirement. According to the experts, a comfortable retirement for a couple is around $60K and for singles it is not much less.

Creating more job opportunities isn’t necessarily the answer. So what is? 

Financial literacy is the key to retiring financially free

In my book, financial literacy continues to be a big issue in this country. Further, a lack of financial literacy doesn’t just impact women or other adults moving towards retirement, but for children coming out of school. The statistics don't lie.  

Due to many factors we know that women are constantly disadvantaged in their retirement savings, and when we combine this with divorce and mortality rates in Australia, woman are often having to cope with being alone and funding themselves later in life.

Superannuation balances for women indicate that they will continue to retire with much less than men. Men typically retire with around $300K and woman are $140K, so men outpace women 2:1 in the superannuation stakes. 

So what are we doing about this? 

ASIC, in conjunction with the Office for Women, have developed the Women’s Money Toolkit designed to assist Australian women to plan and manage for their financial future. While this is a great initiative, the Government does need to continue to develop more opportunities for women to access information and training around wealth creation.

But we need more than that, as attitudes must change, particularly towards woman in the 40+ age groups. Women want financial education and their families need to encourage and support them to build their knowledge and the earlier the better. I believe age, regardless of whether of your sex, should not be a barrier to gaining a solid foundation to creating wealth. The old saying that it is better late than never rings true here. 

Contrary to what many think, your level of intelligence does not guarantee your success in building a comfortable retirement and creating wealth. So what does? 

Gaining knowledge will enable you to retire financially free

Gaining knowledge. It is important to understand your beliefs around success and money, and this also means being clear about their ‘WHY’. Without a strong why and an understanding of what you believe about success and money, you simply either do not start or give up too quickly. Believe it or not, beliefs can either help or hinder your success. 

Your ‘WHY’ is the key to your success, as it will drive you to seek the knowledge to build your wealth. For most people, the drivers are family and/or lifestyle. 

Let me ask you. What drives you? Remember, it’s your money and your choice. It is also your retirement because one thing is certain and that is that tomorrow will come, and you will live into the future. 

It is your choice what your life will be like in the future. Another thing I am certain about is that the pension is not a retirement plan, and so if you are not actively working towards providing for your retirement, you are unlikely to achieve the retirement you desire. 

So what's happening in the market? Watch the video to find out.


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