Turning 55 … Aargh!
By Brendan Taylor
I woke up this morning turning 55 … Aargh!
I mean, it’s been coming for a while so I shouldn’t have been caught by surprise but … Aargh!
When I was 20, anyone over 50 was ancient! I now realise how naïve I was at 20 and officially apologise to all those that I considered past their use by date at that point.
So after a walk (as the old knees prevent me from running anymore) and brunch I spent a bit of time contemplating what it means to turn 55.
My well-wishing brother helped out by delivering the blunt message that I’m most likely at least half way there. Ouch! So I researched my life expectancy. As I have successfully reached 55, the stats say I have 28.35 years left. I have so many things on the ‘unfinished business list’ and ‘bucket list’ that I feel it’s time to get cracking on a few of these. As many of these involve being outside of WA, it appears some of those 28.35 years are going to disappear before we are allowed out of the state. All the more reason to get organised.
A milestone like this makes me reflect on whether I have achieved many of the hopes and dreams I had as a youngster. Sporting greatness, farming, wealth and a myriad of others. Perhaps not the heady heights I had planned, but its been fun trying.
It also entices me to consider that I should make the most of our most limited resource …. time. So I have picked up on an idea I heard recently, of writing a letter to myself to be opened 10 years from now setting out my goals and dreams to achieve in that period.
What else does it mean to be 55?
The next thing that comes to mind is being able to move into an over 55’s retirement village. While I’m not quite ready yet, the idea of living in a smaller house (less cleaning) in a community of friends of similar age, with similar interests, a swimming pool, bowling green and long lunches with a wine is quite attractive.
At one point it was looking like I could qualify for the WA Seniors Card at 55. However that qualifying age is a moving target which I have missed for now. It is rising every two years and currently sits at 64 years old. It appears I will be chasing that one for a while yet, which is a shame because the benefits can really add up - free and discounted travel, discounted licences, council rates and many other business discount offers, see this link for more information.
Remember you also must be working less than 25 hours per week to apply.
Similarly it was looking good for being able to access my superannuation at 55 for a while there. But, once again, they are pushing this out and away from me. Currently it is 58 and moving to 60 by the time I get there, so another 5 years of work to go at least. See preservation dates (left) where you can start to draw down on your superannuation.
Talking of superannuation, I really should be considering at this point whether I will have enough to retire on. This starts with asking myself a few questions.
When do I want to retire?
How much do I want to live on in retirement?
How much do I need to add to my current super balance between now and retirement day to give me the desired income?
As I can only put in $27,500 tax deductible each year and up to $100,000 non-deductible, will I have enough years to get to my required superannuation balance in time?
I’m thinking a few sacrifices may need to be made now if I want to live comfortably in retirement.
The other big one that is getting away from me is the Age Pension. That is also a moving target, currently not available until age 66.5 and will be 67 from July next year. This age also brings with it the Commonwealth Seniors Health Card, and the increased tax free threshold.
As a lot of these age-based benefits, superannuation access and even expected date of death are defined by the government. I don’t think I’m mentally ready to accept this, so my intention is to break the rules and define my own destiny.
So what are the great things about turning 55?
I would suggest something that is extremely valuable … Experience!
Those lines, greys, blemishes and aches bring a gift presented to us by our time here. And this gift is valuable in so many situations, in business, in our personal lives, in dealing with conflict and crises, and in our community.
I had a glorious 26 years before the internet and 41 years before the first iPhone arrived to change our lives forever. I experienced over 20% interest rates in the late 80’s, four significant stock market crashes, high inflation, fires, floods, droughts and the death of friends and family, good times and bad, but this is my first pandemic.
All of these experiences present the opportunity to build a bank of skills to cope with ups and downs. Those skills include how to react if and when similar things happen, and resilience to cope.
This gift of experience should not be underestimated, not by ourselves and not by the younger generations who could do well to call upon us to assist at times.
So as an employer of a team of people, as an adviser to many clients and as a member of our community, I intend to use my 55 year old gift and share some of this experience with others, at least for the next 28.35 years.
I call upon you all, older and younger, to consider doing the same.
2022 Rural Tour is here
Ravensthorpe • Cranbrook • Ongerup •
Dumbleyung • Wellstead
INVESTMENT PLANNING FOR RETIREMENT, BANKING INSIGHTS, HUMAN RESOURCE + CASHFLOW PLANNING.
Discover how to plan for the future in our half day seminar covering:
Investment planning for retirement - get a solid plan in place, develop a retirement plan with a simple 3-step process.
Building a relationship with your bank - information banks require, managing your financial data, understanding the key ratios of your business and your position with the bank before you need to make decisions.
Human resources and recruitment - attract, engage, retain, manage and exit employees, manage COVID-19 in the workplace, the upcoming Work Health & Safety Act 2020.
Cashflow and tax planning - now is the time to turn to your budget for 2022, we’ll look at how to stress test your budget.
Attendance is $15 with 100% of the proceeds given to local charities. Tea and coffee on arrival and a light lunch provided.
Edition 3
For episode 3 of the Lincolns Podcast “Tax & Stuff”, we are diving in to the mystifying subject of Cryptocurrency.
Join Kym Arnold, Phil Mortimer and Ben Ritchie from Digital Capital Management as we give you an introductory insight of how this complex, emerging investment works. We will also give you a basic explanation of capital gains and of course our handy reminders.
Listen here.
