5 Tips For Planning Your Retirement

 

When heading into retirement your life is going to look different to what it did previously.  It isn't unusual to worry about heading into the unknown of life after work.  We have written a brief guide to help you get organised and start planning for your retirement.

1.  SET GOALS

Consider the lifestyle you envisage in your retirement.  Do you want to travel?  Do you want to financially help your children and grandchildren?  Do you want to move house? Pay off a debt by a certain year?  

When considering your goals, it is important to take into account your short, medium and long term goals and be realistic in what you can achieve.

Financial Planner

2. CONSIDER YOUR ELIGIBILITY FOR CENTRELINK

As a nation, our life expectancy is growing, so we need to consider how we are going to fund ourselves after our working lives.  It is essential that you consider if you are eligible for the aged pension or other government assistance and that you learn more about the benefits available to you.

There will be changes to the aged pension eligibility and assets test threshold that will take effect in January 2017.  To read more information on this, click here.

Aged Pension

3. WORK OUT HOW MUCH YOU NEED TO RETIRE

When considering retirement, most people want to maintain the same, or similar standard of living than when they were working, however, not having enough money is one of the biggest concerns for Australians when it comes to their retirement.

One of the best places to start is by making a list of what you've got and what your expenses are, which will give you an indication of your current position and what route you need to take into retirement. The three main expenses to consider are;

  1. Essentials (Food, transport, basic bills)
  2. Lifestyle (Travel, entertainment)
  3. Safety Net (Medical costs, emergencies)
Retirement Financial Planning

4. REVIEW YOUR ESTATE PLANNING

When heading into retirement you will want to consider not only your own future, but also your family's future financial needs. 

Your Will plays a significant role in your estate planning.  This is a great time to update your Will to correctly reflect your wishes.  By getting your will in order it will make it much easier on your loved ones to organise your estate when the time comes.

Estate Planning

Estate planning can be quite complex, so it is wise to seek the guidance of a Certified Financial Planner.

5. VISIT A FINANCIAL PLANNER

Visit a Financial Planner

It is incredibly important to seek financial guidance to give yourself the most opportunity heading into retirement.  Research has shown that the people who receive financial advice (when compared to those who don't);

  1. Feel more confident about meeting their retirement goals.
  2. Have a better standard of living in retirement.
  3. Make more personal super contributions.
  4. Are less likely to rely on the aged pension for an income.
  5. Are significantly more confident in their ability to manage higher levels of investment risk.

(A summary of the findings from the Australian Retirement Vision Survey, Rice Warner, August 2015)

A Financial Planner can help you work out when is the best time for you to retire and put plans into place to help you achieve your retirement goals and make your retirement income last longer.