Paul Clitheroe’s Top Ten Tips

1. Plan Ahead
Make a wish list. Consider where you want to live, would you consider downsizing your residence, what type of lifestyle do you want to lead, what activities do you like to do, will travel be a big part of your retirement and what sort of entertainment will you want to enjoy?

2. Cost your dream
Now you have a plan…. Make a budget ! A sound and realistic budget will help you reach your retirement goals. There are on line tools available to help you. ASIC’s MoneySmart website has a budgeting tool and ipac have retirement simulator and guide at

3. Fund your dream
Now you know how much you need annually for your retirement – Paul Clitheroe uses a simple rule-of-thumb formula as a guide to how much capital you will need to fund your retirement.

    • If you want to retire at age 55, multiple your annual required retirement income by 17
    • If you want to retire at age 60, multiple your annual required retirement income by 15
    • If you want to retire at age 65, multiple your annual required retirement income by 13

4. Take steps now if you are coming up short

The key to having enough money for your retirement is preparation and time. Investigate options such as earning more, spending less, saving more, investing in growth assets (if suitable)

5. Take advantage of government assistance and other sources of retirement funding
The Centrelink Age Pension will not fund a dream lifestyle in retirement. The full age pension (as at February 2016) is $ $867 per fortnight or $ 22,542 per annum. The age pension is means tested, but if you can qualify for even a small part pension, you will also be entitled to the pensioner concession card, which entitles the holder to a range of benefits.

6. Cut back on tax where you can
If you can minimise your tax it means more money in your pocket. Some strategies may include salary sacrifice into superannuation, investing in financial products that a more “tax friendly”, negative gearing into shares or property and making sure you get all the tax deductions you are legally entitled to.

7. Get your investments right
The type of investments in your portfolio as you approach retirement will affect the size of your nest egg, and therefore affect the level of your retirement income. It is important to seek professional financial advice to determine what level of risk you are comfortable with. Risk equals return. The higher the investment risk you take, the higher your potential return – but also the higher the risk of losing money

8. Consider the kids (if you want)
You may like to give consideration to helping the kids with their mortgage earlier rather than later. Or, you may prefer to spend the kids’ inheritance! Either way, make sure you have considered estate planning. A solicitor who specialises in this area can advise you about your will, your estate, powers of attorney and

9. Take aged care into account
Working in the aged care industry you are obviously very familiar with the aged care journey. However, along with estate planning, aged care is a topic most people tend to not to think about too much. We would encourage everyone to have a conversation about ageing and aged care with their family.

10. Take action!
Retirement might seem a long way off. Retirement planning might mean a bit more effort and sacrifice now, but you will thank yourself later. The key to a successful and enjoyable retirement is planning.


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