Page 6 - FWP Wealth Adviser Issue 109

ISSUE 109
APRIL 2025

Reimagining life expectancy is central to addressing longevity risk and designing
resilient retirement plans. By understanding the nuances of survival probabilities,
mitigating financial risks through diversified strategies, and aligning plans
with personal goals, retirees can achieve both security and fulfilment.

Designing a Life with Money to Spare • Advisers can help retirees optimise tax efficiency through
Retirement planning is not just about preserving wealth— strategies such as superannuation drawdowns and frank-
it’s also about enjoying it. As highlighted in “Designing a ing credits.
Life – With Money to Spare,” retirees must balance financial • They can also provide guidance on transitioning from ac-
security with personal fulfilment. cumulation (saving) to decumulation (spending) phases.

Aligning Financial Plans with Personal Goals Conclusion: A Holistic Approach to Retirement
Retirees should begin by identifying their priorities: Planning
• What lifestyle do they want in retirement? Reimagining life expectancy is central to addressing
• How much do they need for essential expenses versus longevity risk and designing resilient retirement plans.
discretionary spending? By understanding the nuances of survival probabilities,
• Do they want to leave an inheritance or donate to chari- mitigating financial risks through diversified strategies, and
ty? aligning plans with personal goals, retirees can achieve both
security and fulfilment.
By answering these questions, retirees can create Ultimately, successful retirement planning requires
budgets that reflect their values while ensuring long-term adaptability and informed decision-making. Whether
sustainability. through lifetime income streams or customised portfolios,
retirees must embrace strategies that reflect their unique
Creating a Safety Margin circumstances while preparing for an uncertain future.
A safety margin provides a buffer against unexpected
costs or extended longevity:
• For example, setting aside funds in low-risk investments References
such as term deposits can offer liquidity for emergencies. 1. Ezra, Don (2025). Life Expectancy and Why I Don’t Like the Expression.
• Retirees should also consider insuring against major Firstlinks.
health expenses through private health cover or long- 2. Designing a Life – With Money to Spare. Firstlinks (2025).
term care insurance. 3. Are Lifetime Income Streams the Answer or Just the Easy Way Out?.
Firstlinks (2025).
Seeking Professional Advice 4. Risk and Retirement. AdviserVoice (2025).
Working with financial advisers is essential for integrat- 5. Australian Bureau of Statistics (2024). Life Tables for Australia.
ing complex strategies into cohesive plans:

6