The increasing number of retirees and the increasing longevity of these retirees will create opportunities and challenges. Expect to see changing spending patterns within the economy as the power of the grey wave starts to hit. Healthcare, travel and entertainment will be likely winners.
The investment conclusion from all of this, the grey wave is going to want more income assets that provide long term inflation hedging.
For more information about planning into your future, give us a call.
Last week I attended a conference focusing on the aging revolution, specifically the effect of the baby boomers as they start hitting retirement. There are three classes of retirees; we have the Go-Go, the Go-Slow and the No-Go retirees. They have different spending patterns and needs. I have found an amazing bit of software to help these people plan their finances as they move into retirement. This is a personalised solution based bit of software. You can add in your assets & liabilities, income and financial goals. You can add variables and come away with a clear financial picture of your own personal retirement situation. It is also really good for those tail-end baby boomers planning their savings or working out when they will become financially independent.
If you would like to sit down and work through this process, give me a call as I am excited to share this journey with anyone who is interested.
John Barber
We know about yuppies (young professionals living a luxurious lifestyle), dinkies (double incomes no kids) and now we have dippies – not drunken Lincoln or Massey students, but over 65 year olds, still working (double incomes, plural pensions). These dippies think 65 is the new forty – not a bad mind-set, I think! These guys are people over 65, still working and, in some cases, still caring for young children (thanks to a second time around marriage/partnership). But, they are collecting the pension.
Today over 55 year olds comprise 24.7% of the population but own 54% of the nation’s wealth. In 2031, baby boomers will make up 32% of the population and hold even more of the country’s wealth. We are working harder, staying in our jobs longer and focusing on staying fit and healthy.
Are we going to out live our money? What does your retirement look like?
Don’t become a share trader by accident or you could find yourself paying capital gains tax like a property developer. In the past few months we have seen a number of initial public offerings (IPOs) that have encouraged investors into the market.
Beware becoming a share trader by buying and selling without a buy and hold strategy. Time, purpose and intent all play a part in someone being deemed a trader. The tax consequence could be a hefty tax bill. We recommend getting qualified advice.
Did you know you can transfer your Australian super fund to New Zealand?
If you have worked in Australia, you can search for your super balance by going to www.ato.gov.au. You will need your name, date of birth and your tax file number.
Transfers became possible from July 1st 2013, but make sure you get qualified advice before you sign up for anything.