Zest! / RETIRING

Strike a balance for retirement

Try these exercise-inspired moves for a balanced, healthy and fulfilling retirement.

By Ofalyn Ayuk - 4 min read

Ofalyn

A little about Ofalyn

As a Member Solutions Consultant at Russell Investments, Ofalyn Ayuk understands all the ins and outs of super and retirement legislation, and loves to answer questions and help members.

Our physical, mental, and financial health are all essential to our wellbeing as we age. And, as most people know, they are interrelated.  

For our physical health, Australian government guidelines recommend adults exercise for at least 30 minutes a day, or most days. The guidelines also suggest that practicing ‘mindfulness’ while we exercise (basically concentrating on what we’re doing) reduces stress and improves mental health. 

In yoga, for example, quiet reflection and focus can help to calm the mind. But have you ever considered that this concept of mindfulness can also be applied to improving our financial health?  

Mindful goal setting 

Here’s how it could work. Sit (or stand) in a comfortable position. Take a deep breath and visualise what you want from your life after work. Think about what you would like to achieve, what activities you would like to pursue and what kind of lifestyle you would like to have. GoalTracker® can help with useful prompts to get you thinking. 

In competitive sports, athletes may use goal setting and visualisation to improve their results. Similarly, taking time to set goals can help us to achieve the best results in retirement.  

Start your training 

Of course, improving your physical health takes more than reflection and meditation. And the same goes when you’re preparing for retirement.  

If you’re getting started in a new sport or activity, you might go to a class, hire a coach, or read up on the rules. Similarly, when you’re moving towards retirement, it helps to equip yourself with the information that you’ll need so that you know your options. 

This might involve learning about transition-to-retirement strategies and the government Age Pension, for example. These potential income streams may not be relevant to you now, but better information leads to better decisions in future.  

Build your super stamina 

Now is also the time to work on building your super balance. This might include contributing to your fund directly from your pre-tax pay via salary sacrifice arrangements and adding extra after-tax amounts you may come into—such as an inheritance, employment payout, or sale of a rental property or other non-super investment.  

Use the opportunity in the last five to 10 years before you retire to really grow your super before you start to draw down on your retirement savings.  

It might not be for everyone, but you could even consider changing your living arrangements. Do you plan to make a tree change or sea change? Or downsize your home? Moving to a smaller home may free up equity in your property, giving you more money to draw on in future.  

There is usually no capital gains tax to pay on profits you make from selling your home. And if you are aged over 60, you can contribute $300,000 from the proceeds of the sale of your home into super, boosting the balance you will have available for retirement.  

It’s important to note that there are implications to downsizing your home and contributing the proceeds to super. Extra savings in super could affect your Age Pension entitlement, for example. Make sure you understand the potential effects on your own situation before making any decisions.  

Appoint a professional 

Now, rather than getting sporting tips or yoga moves from your super fund, you’d be better off going to a coach or a yoga teacher. Similarly, when you’re thinking about super, talk to the experts.  

  • Our retirement consultants can help you directly through a Retire Ready meeting, where you can receive general advice and the support you need to prepare for retirement. This comes at no cost to you. 
  • We also offer phone-based advice, often at no cost to you, so you can receive targeted, personalised advice on particular topics.  
  • Another option is a referral to a financial adviser who can delve further into your personal situation and help you with the advice that’s right for you. We can arrange this for you and your first meeting is complimentary. 

 

Did you know?

Adults should do at least 2.5 to 5 hours a week of moderate intensity physical activity (like a brisk walk or swimming), plus 1.25 to 2.5 hours of vigorous intensity physical activity (like jogging or competitive sports), according to Australian guidelines? This should include muscle-strengthening activities (like push-ups, lifting weights or household tasks that involve lifting, carrying or digging) on at least 2 days a week.  

Exercise should be spaced out throughout the week and can be completed in small increments, adding up to the total.

Source: For Adults (18 to 64 years), Department of Health and Aged Care, 10 May 2021.

Issued by Total Risk Management Pty Ltd ABN 62 008 644 353, AFSL 238790 (TRM) as trustee of Russell Investments Master Trust ABN 89 384 753 567. Nationwide Super and Resource Super are Divisions of the Russell Investments Master Trust. The Product Disclosure Statement (‘PDS’), the Target Market Determinations and the Financial Services Guide can be obtained by phoning 1800 555 667 or by visiting russellinvestments.com.au or for Nationwide Super by phoning 1800 025 241 or visiting nationwidesuper.com.au. Any potential investor should consider the latest PDS in deciding whether to acquire, or to continue to hold, an investment in any Russell Investments product. Russell Investments Financial Solutions Pty Ltd ABN 84 010 799 041, AFSL 229850 (RIFS) is the provider of MyTracker and the financial product advice provided by GoalTracker Plus. General financial product advice is provided by RIFS or Link Advice Pty Ltd (Link Advice) ABN 36 105 811 836, AFSL 258145. Limited personal financial product advice is provided by Link Advice with the exception of GoalTracker Plus advice, which is provided by RIFS.  

This communication provides general information only and has not been prepared having regard to your objectives, financial situation or needs. Before making an investment decision, you need to consider whether this information is appropriate to your objectives, financial situation and needs. If you'd like personal advice, we can refer you to the appropriate person. This information has been compiled from sources considered to be reliable but is not guaranteed. Past performance is not a reliable indicator of future performance. To the extent permitted by law, no liability is accepted for any loss or damage as a result of reliance on this information. This material does not constitute professional advice or opinion and is not intended to be used as the basis for making an investment decision. This work is copyright 2022. Apart from any use permitted under the Copyright Act 1968, no part may be reproduced by any process, nor may any other exclusive right be exercised, without the permission of Russell Investments.