Financial Planning for Empty Nesters: Redefining Your Next Chapter

A Fresh Financial Start After the Kids Move Out

Becoming an empty nester marks the start of a new chapter – one that’s filled with freedom, choices, and the opportunity to reimagine your financial future.

With children leaving home, many pre-retirees begin reassessing their goals and priorities. Whether you’re looking to downsize, travel more, or strengthen your retirement plan, smart financial planning can help you make the most of this exciting stage of life.

Reassess Your Financial Goals

As your expenses shift, it’s time to realign your goals. What does financial independence look like to you now?

Consider:

• Do you want to retire early or transition gradually?
• What lifestyle do you envision – travel, leisure, or part-time work?
• How can your existing savings and investments support these goals?

A financial planner can help you redefine your objectives and structure your wealth around what truly matters in this next phase.

Review Your Superannuation and Investments

Your superannuation plays a central role in retirement planning. Empty nesters should:

• Consolidate multiple super funds to avoid duplicate fees.
• Assess investment risk – consider shifting toward a more conservative mix as retirement approaches.
• Boost your balance through catch-up contributions or salary sacrifice if you’re still earning.

If you hold shares, property, or managed funds, a professional review can ensure your portfolio aligns with your future income needs and comfort level with risk.

Downsizing or Rightsizing Your Home

Many empty nesters explore downsizing – or rightsizing – to simplify their lifestyle and unlock equity from the family home. This can help:

• Reduce maintenance and living costs.
• Free up capital to invest or supplement retirement income.
• Potentially contribute up to $300,000 (per person) to super under the Downsizer Contribution scheme.

Before you sell, factor in:

• Real estate and moving costs.
• Stamp duty or purchase expenses if buying again.
• The emotional value of your current home.

A financial adviser can model the outcomes and help ensure the move makes sense for your long-term goals.

Manage and Reduce Debt Before Retirement

Paying down debt before retirement sets you up for a smoother financial journey.

Options include:

• Refinancing to a lower rate.
• Making additional repayments while you’re still working.
• Consolidating smaller debts into one manageable loan.

Clearing debt early helps maximise your retirement income and reduces financial stress when your regular salary stops.

Plan for Lifestyle and Legacy

The empty-nest stage isn’t just about finances – it’s about purpose.

Now’s the time to:

• Explore how you want to spend your time (travel, hobbies, volunteering).
• Create or update your will and powers of attorney.
• Review your insurance and estate plan.
• Set up intergenerational wealth strategies if you wish to support children or grandchildren.

These steps ensure your legacy – financial and personal – is secure.

The Value of a Financial Adviser

Even if you’ve managed your money independently, a professional adviser can bring clarity and structure to your next chapter.

They can help you:

• Build a sustainable income stream for retirement.
• Maximise tax efficiency and super contributions.
• Plan for longevity and future healthcare needs.
• Create flexibility to adapt as your goals evolve.

Your empty-nester years offer the chance to live life on your terms. With the right financial advice, you can turn this transition into an opportunity for growth and freedom.

Talk to an Inovayt financial planner today to create a personalised plan that supports your goals – now and into retirement.

FAQs

1. What is financial planning for empty nesters?

Financial planning for empty nesters helps individuals or couples whose children have moved out reassess their goals, income needs, and retirement strategy. It focuses on wealth management, superannuation, debt reduction, and lifestyle planning.

2. Should I downsize my home after the kids move out?

Downsizing can lower costs and unlock equity for retirement. However, it’s important to weigh emotional and financial factors. A financial adviser can model the impact and explore if downsizing aligns with your long-term goals.

3. How can I boost my super before retirement?

You can make salary-sacrifice contributions, catch-up concessional contributions, or downsizer contributions if eligible. These strategies can grow your super balance and help secure a stronger retirement income.

4. What are the main financial goals for pre-retirees?

Common goals include reducing debt, maximising super, ensuring sustainable income in retirement, and protecting assets through estate and insurance planning.