The situation

Ken, 58 and Diane, 56 knew there were still a few years before they wanted to fully retire. However, Ken was hoping to scale back work to three days per week before pulling the pin. They were unsure what options were available to them and what impact this would have on their future.

How we helped

• We carried out a ‘risk profile questionnaire’ in order to find out their tolerance for investment volatility and preferred investment style.

• We also analysed their alternative options to determine if they would have enough money to fund a comfortable retirement. We provided them with financial modelling, forecasting their retirement cashflows.

• We then recommended that Ken convert his super into a Transition to Retirement Income Stream (TTR), drawing a monthly pension payment to make up the short-fall from his reduced work hours.

• At the same time, they were able to invest their retirement savings through lower-cost funds, saving them ongoing fees.

• Once Ken fully retires, his TTR pension will convert into a full (tax-free) income stream.

The results

Ken and Diane now have peace of mind knowing that their retirement planning is on track, allowing them more time to spend with their family and friends.