Book Review 12/10 – Putting a heartbeat into retirement advice

For obvious reasons, a great deal of emphasis is placed today on the need for sound planning and a disciplined commitment to achieve that mystical goal of financial independence during the retirement years.

To make sure that this pursuit of happiness doesn't get too easy and boring, federal governments of both pursuits have regularly changed the superannuation rules. To make it doubly exciting for the average investor, the Government has made it increasingly clear that the funding of retirement will essentially come from the people retiring - not from the tax coffers.

In isolation, building up assets and an income stream to bring comfort and joy in retirement years is challenge enough. But as author Michael Longhurst points out very effectively in his book "The Beginner's Guide to Retirement", financial wisdom alone is not sufficient.

Michael Longhurst is not a financial planner. And to get the message through to his readers, he probably does not need the qualification. Longhurst's interest is in the total experience of retiring - physical, emotional and financial. It is the way he sows these disparate themes together that makes the guide a must-read for any clients approaching retirement.

Longhurst has degrees in both psychology and education. The basis for The Beginner's Guide to Retirement was the Retire 200 research program which he was actively involved in. The research studied 100 men and 100 women from rural and urban areas, drawn from each Australian state and from a cross section of pre-retirement occupations.

The program set out to differentiate the behaviour and activities of people who were happy with their life in retirement from those who were not. It became apparent that most of the problem areas could be managed or removed by counselling or advice.

Some of the chapter headings indicate the road along which the book travels:

Remaining challenged and involved, Assertiveness skills, Getting your rights without stress, Maintaining and managing relationships, Anxiety, depression and stress, Understanding grief and loss, Ending loneliness and Managing money and avoiding traps.

Yes, of course there are 20 pages on guiding your financial health. The Research 200 program found that financial independence rated among the top factors influencing well-being. People who were not financially independent experienced higher levels of anxiety, stress and depression.

The guidelines in this chapter are logical and soundly based, backed by quotes from participants in the research program. The chapter covers all the basics including how to select a financial adviser; the cost of a financial plan; and understanding the jargon. Longhurst is careful to emphasise the importance of seeking financial advice from a professional financial planner and concentrates on how to handle the relationship witrh the planner. The chapter even covers the thorny issue of how to avoid scams, tricksters and desperadoes.

One of participants in the research program is quoted as saying: " In retirement you need twice as much money but half the clothes". This is a close to a laugh that you'll get in the book, because Michael Longhurst sets out to instruct and inform, not to entertain. His conviction that the research program would provide the material for a very worthwhile book is spot-on.

It is clearly written and easy to understand and throws useful light onto the shadows of retirement. It should be recommended reading for financial planners and accountants in particular because it will put a heartbeat into their plans for their clients' golden years. It will also be a valuable addition to the rather dry advice financial planners offer their clients.

Review by Bill Fenn.

(Published by Hodder Headline, Australia. Available in bookstores now.)