How do you factor in a situation like this when talking to clients in pre-retirement?
I was speaking to my mum the other day about friends and family and our experiences in Covid. She raised her most annoying issue with the current restrictions and economy; her travel plans, she can’t even take her camper where she wants to on top of her cancelled overseas holiday.
This may make my mum seem blasé about the current situation but remember, she wasn’t expecting me to write about it and I was asking about her, she is a wonderful mum that cares and supports many.
It did get me thinking about how clients plan for changes to their situation. How do you factor in a situation like this when talking to clients in pre-retirement?
The largest recipients to Centrelink benefits are over age 65, two out of three receive the Age Pension, we can do a lot to ease clients mind by talking them through a base case (or worst-case) scenario. We can explain what the Age Pension or other benefits provide and how this can support a very basic retirement. Of course, as advisers, you aim to build on this with annuities and superannuation savings to support a comfortable retirement but sometimes just knowing the basics can add some value in pandemics and ‘what ifs …(but we never thought it would happen)’ situations.
My mum is a 60 something and worked and saved hard while my siblings and I were growing up. She deserves her holidays. When my mum was planning her retirement we mapped out a few scenarios, like stopping work immediately, in 2 years, going part-time and working until Age Pension age. In all cases we aimed to meet her goals, but it highlighted a different level of government support and longevity of her capital, the fact that fewer holidays in later life were on the cards the earlier she retired. However, It did giver her a peace of mind. Now she is lucky enough to only worry about where she can travel.
For those lucky in retirement like my mum, here are a few covid friendly activities:
Take up a new hobby (my mum is a keen photographer in retirement)
Learn a new language
Camping and overnight stays close to home – acting like a tourist in your state is lots of fun
Organise a picnic
Take a walk a bike ride
Join a club –Probus has great ideas to stay connected and active
Upgrade your computer skills
Travel virtually, there are plenty of options if you google
Talk to AdviceLink today about government support for your clients of all walks of life.What are the essential benefits available now and in retirement in a worst-case scenario. We can assist with claims, updates and transitioning from one benefit to another.