Julie: Navigating a Late Career Change with Financial Confidence

The situation

Julie, 60, has been a mid-level executive earning $115K per year but is now looking to reduce her work hours and transition into consulting. She’s concerned about how this career change will impact her retirement savings. With $550K in super and no major liabilities, Julie is looking for advice on how to maintain her lifestyle as her income decreases, while still preparing for a comfortable retirement at 65.

Concerns

  • Will cutting back on work affect my ability to retire on time?
  • How do I balance consulting income with saving for retirement?
  •  Is my superannuation enough to sustain me long-term?

Our approach

We worked closely with Julie to create a plan that balanced her desire for more flexibility in her work life with her long-term financial security. First, we reviewed her super and recommended salary sacrificing part of her consulting income into her superannuation, optimizing her contributions while reducing tax. We also implemented a catch-up contribution strategy, allowing her to top up her super in the years ahead.

To support her income needs in the short term, we recommended drawing from her investment portfolio, carefully designed to provide a steady stream of income without eroding capital. We also projected her future pension entitlements and calculated her expected retirement income, giving her confidence that she can comfortably retire at 65 with minimal financial stress.

The benefits

  • Flexible Work Options: Julie now has a strategy that allows her to work part-time while still contributing meaningfully to her retirement savings.
  • Tax Efficiency: By salary sacrificing her consulting income and using catch-up contributions, she’s saving on taxes and boosting her superannuation.
  • Income Stability: With a diversified portfolio and clear retirement projections, Julie can enjoy the income she needs now, knowing her future is secure.
  • Peace of Mind: Julie feels confident making this career change, knowing she has the financial backing to support her transition and retirement.