A ‘Pre-Retiree’ is commonly referred to as a person who finally has the opportunity to enjoy some of the good things in life, like travel, eating out and a wide range of leisure pursuits. Their responsibilities are reducing, and their children are likely to be independent (even though they’re quite likely to be still living at home).
Their mortgage is finally down to a reasonable level and they’re probably in a comfortable position career-wise. They may have more surplus cash than at any other time in their life and as such look for direction in how best to utilise this excess.
‘Pre-Retirees’ may not be ready to retire yet or may not want to retire yet – but they are likely to be thinking about when financially they’ll be able to afford to do so. One of the most difficult and fundamental decisions this generation has to make is calculating the amount they’ll need to achieve their goals in retirement, as well as being comfortable in making that significant decision to retire.
Due to factors out of their control such as the ‘Global Financial Crisis’, wealth preservation has become as high a priority for them as wealth creation. Pre-Retirees don’t want to see their asset base disappear as a result of poor decisions (factors in their control) as they do not have the time left ahead of them to build it back up again.
Pre-Retirees are constantly hearing about the strategies around superannuation and tax, yet do not fully understand them or know how to fully take advantage of them – especially as regulators, governments and the markets seem to be forever changing the rules.
It is at this point in their life where strategies and comprehensive planning for retirement is at the forefront of their minds to ensure they are financially stable for many years to come.
What you need to know
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