Steve and Laura: Preparing for a Family-Focused Retirement

The situation

Steve (59) and Laura (57) have worked diligently over the years, Steve earning $150K and Laura $85K. Their primary concern is making sure they can retire in five years while still supporting their two adult children as they finish university and start their careers. With $950K in combined super, a home valued at $1.7M, and $300K in savings, they are unsure how to balance their retirement plans with helping their children financially.

Concerns

  • Can we retire while still offering financial support to our children?
  • How do we plan for our retirement income while covering family expenses?
  • Will our savings last long enough for a comfortable retirement?

Our approach

We understood that Steve and Laura wanted a retirement that included helping their children while ensuring they had enough for themselves. We developed a phased retirement strategy, allowing Steve and Laura to contribute more to their super in the years leading up to retirement through salary sacrificing.

We also mapped out a strategy for the financial support they wish to provide to their children. This included setting aside $150K in a low-risk investment account dedicated solely to helping with their children’s education and early career expenses, while leaving their retirement funds untouched. By consolidating their super accounts into a superior platform, we ensured they can draw a stable income of $80K annually when they retire, providing peace of mind about their future.

The benefits

  • Balanced Support: Steve and Laura can now retire knowing they’ve set aside funds specifically to help their children without impacting their own financial security.
  • Maximized Retirement Savings: Salary sacrificing and super consolidation strategies help maximize their savings and reduce tax.
  • Clear Financial Roadmap: With a stable retirement income projection of $80K annually, they can confidently plan for travel and enjoy their retirement.
  • Reduced Anxiety: By addressing both their family and financial needs, Steve and Laura now feel in control and reassured about their future.