How to stay financially fit in retirement

Retirement isn’t a finish line; it’s a new beginning – a phase of life where financial fitness is as critical as ever. So, it’s important that you consider not just how much you’ll need but also how to make the most of retirement and navigate your golden years with confidence and peace of mind. Here are our tips to stay financially fit in retirement.

#1 Plan for a long, full life

With the average retirement age in Australia being 56.9 years and life expectancy reaching 83.9 years, the average retirement lasts some 27 years. 

Retirement brings a newfound sense of freedom as work takes a back seat, and it should be an exciting time full of possibilities. But it’s also important to plan your spending carefully. 

It’s a balancing act. You don’t want to overspend so that the latter half of your retirement is defined by money worries. However, you don’t want to wait too long to take those big trips because you may not have the health and vitality to enjoy them. 

Between retirement and age 75 is your golden window for adventure – think overseas jaunts and bucket list experiences. As you move towards the 75–85-year bracket, it may be time to recalibrate your adventures to more leisurely experiences like cruises or domestic tours. This gradual shift aligns with changing energy levels and health while ensuring you continue to enjoy a fulfilling life.

While some people can (and do!) travel after 85, it is less likely, but as your travel expenses go down, your health costs are likely to increase. 

#2 Plan for rising health costs 

As we step into the later years, health often moves to the forefront of our concerns and health-related expenses can see a rise. It’s critical to prepare for these unknown costs so that if the time comes, you won’t compromise your financial security. A robust financial plan should include access to emergency funds to cover any significant, unexpected health costs. 

#3 Build a robust and diversified investment plan

Sustaining financial fitness in retirement is akin to maintaining a balanced diet for your investments – diversity is key. A well-rounded investment strategy that accounts for short-term needs and longer-term income streams can offer both stability and the means to enjoy your retirement years fully.

And make sure you stick to it. Consistency in your investment plans plays a crucial role in weathering market volatility and ensuring your finances can support you through the various phases of retirement. It’s not just about having a plan; it’s about sticking to it, with room for adjustments as your life and the economic landscape evolve.

#4 Embrace local activities and community engagement

Finding joy in local activities, community engagement and simpler pleasures can enrich the latter years of retirement immeasurably. As international travel and high-energy experiences take a back seat, activities and communities closer to home can step in.

Retirement is a significant life phase that demands thoughtful planning – financially, emotionally and physically. At Apt Wealth Partners, our goal is to empower you to embrace your golden years with optimism. Planning your goals and your finances means you can live without money stress and enjoy every moment of your well-deserved retirement. 

For personalised advice, reach out to your Apt adviser. Not yet an Apt client? Contact us to book your free consultation and find out how we can help you realise your dream retirement. 

General Advice warning

The information provided in this blog does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. Apt Wealth Partners (AFSL and ACL 436121 ABN 49 159 583 847) and Apt Wealth Home Loans (powered by Smartline ACL 385325) recommends that you obtain professional advice before making any decision in relation to your particular requirements or circumstances.