Retirement Planning
Godwin and Rita are both age 62. Godwin is not enjoying his work anymore and wants to retire now. However, Rita loves working at the local coffee shop meeting people and thinks she will work (even if part-time) to age 70. They have their home paid off and some small amount in savings but mostly all their capital is held in superannuation. They have $800,000 combined across both their superannuation accounts. This should be enough for a comfortable retirement, however they want to help their two children reduce their mortgages by gifting them $100,000 each, reducing their super to $600,000.
With reference to this case;
a. List three important financial objectives that retirees commonly have
b. Discuss three types of risks that are specific to achieving a retiree’s objectives
c. Provide three reasons why lifetime annuities appeal to retirees.
d. What is the main concern you have for these clients?
