Insight Accounting Pty Ltd is a CPA Practice

Beaconsfield (03) 9707 0555

Cranbourne (03) 5995 2700

Pakenham (03) 5940 4555

Who wants to retire at 70?


By: Renee Kiley

We have all heard and read on the news lately (and if you haven’t you must be living in a cave somewhere!) about the government’s plan to increase the retirement age to 70 over the coming years, meaning there will be no access to the Age Pension until then either. There has been outcry and much negativity about it on Facebook and other social media and it has been (I’m sure) the topic of many dinner party discussions and probably some late night chats between couples at home over a glass of wine after a long day’s work.

In most public opinion polls carried out around the country since the initial announcement, results have pretty much reflected that around 75% of people oppose the change and about 25% support it (Sources: Herald Sun, The Age, Central Western Daily)

I’m definitely not silly enough to discuss politics and my personal opinion on the matter at length in this article! So, what has all this got to do with property investment?

Well, I am mortified about the number of people (from a financial perspective only!) that believe this change will heavily impact them. We do not have to work until we are 70 and the Government certainly shouldn’t dictate when we retire; it is our choice.

We don’t have to rely on the age pension if we start utilizing our income earning potential (ie. wages/salary/business profits) now or as early as possible to invest in our future and that of our families. I understand that everybody’s situations are unique, but for those that have the financial capacity (can part with $50 a week) and capability (have a job and the health/well-being to maintain employment) to shape their own financial future – it really is time to step up and take action and give yourself that “choice” in the future.

Don’t wait for the next “hot” property, or the next “boom” or that big “development” or “subdivision” opportunity that cousin Bill has been working on for 3 years and wants you to be in on. Buying the right, low risk (sometimes un-sexy) property, and building a portfolio of 3-4 properties as quickly as you can, then hanging on to them for the long term is a sure fire way to enable you to stop working or at least have the choice to decrease your work hours long before you are 70. How? By selling off one or two properties when the time is right, you are able to pay off the debt on the others and live off the rental income. It is that simple. You will probably end up far wealthier than 90% of retirees too!

I have huge goals for myself; I would love to be in a position to work part time hours by the time I am 40. Fat chance most people say! Well I’m happy to plod along in the background doing my own thing and making sacrifices where I need to now in order to achieve that goal. I am that serious about it.

It is that important to me.

I am so passionate about people improving their lives and their financial future, its one topic that is guaranteed to get me very worked up! Not too long ago, I overheard a conversation between two of my family members that are nearing retirement age (sorry to the two involved!) some of the comments made were, “we will have to cut down on groceries”, “we really need to watch our spending”, “we can’t afford to go away”, “it’s too late to invest now – were too old there is not enough time”, “I hate my job”, “so many things will need to change”….

When you invest and part with your hard earned money, whether it is property or shares, there will be bumps along the way, there will be situations that scare the h*ll out of you, there will be things you don’t understand and you will probably get stressed out and upset a couple of times along the way too. But I bet it will all be worth it when you are 45, 55 or 60, and able to enjoy your retirement to the full, sitting on a beach somewhere, showering your grandkids with gifts or volunteering your time to a charity you are passionate about.

Whatever your reason; get out there and commit to making it happen. As we all know, the older we get, the faster time seems to fly by. Don’t let another 5 years go by and regret not taking action sooner.

DISCLAIMER:All information provided in this publication is of a general nature only and is not personal financial or investment advice. It does not take into account your particular objectives and circumstances. No person should act on the basis of this information without first obtaining and following the advice of a suitably qualified professional advisor. To the fullest extent permitted by law, no person involved in producing, distributing or providing the information in this publication will be liable in any way for any loss or damage suffered by any person through the use of or access to this information. The article is produced by Property Way (ABN 57 141 982 934)

Insight Accounting Pty Ltd is a CPA Practice

Limited Liability by a scheme approved under Professional Standards Legislation

© Copyright 2014 - Insight Accounting | Accountant Cranbourne, Beaconsfield, Pakenham, Berwick, Narre Warren, Officer, Tax Returns South East Melbourne | Disclaimer | Privacy Policy | Contact