Chris Sozou, Virgin Money Australia's General Manager Wealth and Insurance, outlines some of the lifestyle factors that influence the way you could be investing in super through your 50’s.
- Children leaving the nest
- Mortgage fully paid off
- Household disposable income higher
- Taking stock of retirement savings
Read the full transcript: Investing in Super through your 50’s
“Most children will have left the nest by or during your 50s. You may also have paid off the mortgage, which means your bills will reduce significantly. Now that your household consumes less, it is a good time to take stock of your retirement savings. Hopefully, your good work in your 30s and 40s means that you have a healthy super balance, and now is the time you accelerate your efforts to ensure you have enough super to live your retirement dream. It is in your 50s when you will hit your Preservation Age. This is the age when you can start to access your Super if you retire or have started a transition to retirement income stream. Your preservation age will be between 55 and 60 depending on the year you were born. Once you hit your preservation age, you can start to implement a transition to retirement strategy. A transition to retirement strategy done correctly can mean more money in your retirement bucket, more money in your weekly pay packet and less tax.
As retirement starts to approach, and with your super balance looking healthy, now is the time to consider taking some risk off the table. If you are with Virgin Super LifeStage Tracker® Balanced option, we will invest 50% of your balance in defensive assets such as Australian Fixed Interest, Listed Property and Cash. The remaining 50% of you balance will continue to be invested in growth assets giving you a good mix of growth and income.”