A baby born in Australia today can expect to live up to 85 years, a remarkable leap from the 1960s, when life expectancy was only 66 years. With many individuals now likely to spend over two decades in retirement, the risk of outliving one’s savings has become a growing concern. Even well-managed savings can be gradually diminished by inflation over time. While the Australian government provides a safety net through the Age Pension, many retirees seek a higher standard of living than what the pension alone can offer.
Assets that generate ‘passive’ income offer a reliable solution, providing a steady income stream during one’s working years and eventually replacing that income in retirement—without the worry of exhausting savings. One of the most effective ways to build passive income is by investing in property and other income-generating assets. For example, an investment property, once paid off, can offer consistent rental income while appreciating in value. Additionally, other investments like dividend-paying shares, managed funds, or bonds can provide similar opportunities for regular income.
By building a diverse portfolio of passive income sources, you not only reduce the risk of outliving your savings but provide yourself with lifestyle options throughout retirement. No matter where you are in your career, whether just starting out, already retired, or somewhere in between, the financial advisers at Northhaven Financial Management are here to help. We specialise in building tailored and diverse portfolios that generate passive income now and into the future. Contact us today for an obligation-free consultation and discover how we can support your financial goals.
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