Protecting your income when you’re single or divorced

Posted on 14 April, 2019

At 65, Jane* felt ready to retire but wasn’t sure if she could afford it.

She owned her home outright, had savings in super and recently inherited $100,000 from her mother, but as she was recently divorced, was convinced she would have to work for many more years.

It’s a common concern for many single women over 50, according to Trina Wood of financial planning firm Green Associates.

“They are worried about not having enough money to live off now and enough to be able to retire in the future,” Trina says.

“Their biggest asset is normally their home and their income, but protecting their income is expensive (due to age and being a female – income protection insurance costs more for women than men).

“However, they have to be self-sufficient because if they get sick and are unable to work, they’ll be in a worse position. It’s all about weighing up the different options and trade-offs to build a strategy which gives them the best outcome.”

Trina Wood.

Faced with financial uncertainty, Jane visited Trina for a financial consultation.

“What I was able to do was structure her super (adding the inheritance), commence a pension from those savings and maximise her Centrelink age pension, and in fact she retired immediately with more net income than she had while she was working,” Trina says.

Trina believes many people put off going to a financial planner as they don’t know what to expect, when in fact it should be a priority.

“There’s a lot of anxiety and sometimes embarrassment before an initial appointment. I can tell you after the appointment, people always tell me how much better they feel, they wish they’d come sooner and it wasn’t scary at all,” she says.

“It’s important to know where your money goes, have a plan for repaying any debt, and build money inside super. The earlier you start the better, but starting today is better than a year from now or even later.”

Along with advice on budgeting and reducing cash flow, Green Associates can help identify any gaps in your protection, put you on a better path to retirement and make investment recommendations to help your money work harder for you.

“The first step is being able to show you where you are at the moment, and where that will take you,” Trina says.

“We spend time understanding how you currently do things to help us work with you. Throughout this, we identify what’s important to you and where you want to go.

“It’s different for everyone, but this can include being able to retire, buy a house, gift money to someone, etc. Once we’ve done that, we use a range of strategies which combined will help you reach those goals.”

the essentials

What: Green Associates
Where: 3/10 Geils Ct, Deakin ACT 2600
How much: Consultations start at $250
Web: greenassociates.com.au

*Name has been changed.

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