As you enter your fifties or sixties, you start looking forward to retirement and spending time doing the things you love. With many Australian’s living longer, this also means that retirements are getting longer. With more years to enjoy, you will need to consider your money lasts as long as you do.
Here’s our tips to getting retirement ready:-
- Get Clear on Your Retirement – you have some idea of how you would like to spend your retirement. Focus on your goals and experiences and not on budget right now. Try to be as specific as you can be, for example, most of us want to travel. Instead of travel, list the trips you want to take, the countries that you want to visit.
- Take Stock of Your Assets – start preparing a list of what you have from how much you have in the bank, your superannuation and/or retirement account. What about those non-traditional assets that may help to fund your retirement? Just list them.
- How’s Your Health – to get the most out of life and retirement – you want to be as healthy as possible. Schedule your check-ups including your annual physical. Make a plan to improve and/or maintain your health.
- How much Superannuation – it may be possible to give your nest egg a boost. Speak to your employer about salary sacrificing or contributing to super from your pre-tax income. This means less take home pay now, however it adds to your super and is also tax effective.
- Debt Free or Not – a plan to make sure you are debt free by the time your retirement. This could be a repayment plan over time, or an often-overlooked strategy is contributing extra to super in lieu of paying down debt and then withdrawing from super at retirement to extinguish debt.
- Create a Retirement Budget – start planning by tracking your income and expenses for a couple of months. This will give you an idea of how much money you will need in retirement to support your lifestyle.
- Prepare for the Unexpected – sometimes things happen. Prepare for the unexpected now and you won’t get caught out. Take the time to consider how you would pay for an unexpected expense such as a house repair or something more serious such as illness. Make sure you have your bases covered.
- Get Protection – ensure that your insurances are current and up-to-date. Ensure that you have all the right home, car, building, health and life insurances. If your insurance coverage in inadequate, now is the time to increase it. Put money aside now. Preparing now means you won’t pay later.
- Transition to retirement strategies – if you are aged 55 or over, there are a number of transition to retirement (TTR) strategies that allow you to access some of your super while you are still working. This can open up a range of possibilities to boost your income, your lifestyle and even your super before you retire.
- Speak to a financial adviser – it makes sense to speak to a financial adviser. They will be able to provide guidance and advice about how best to prepare for your individual retirement.
Retirement should be something that you are looking forward to, so speak to us today about how we can help.
General Advice Warning
This blog contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
If you decide to purchase or vary a financial product, your financial adviser, Charter Financial Planning Ltd and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.
Varria Pty Ltd (ABN 23 108 047 383), is an authorised representative and credit representative of Charter Financial Planning Limited, Australian Financial Services Licensee and Australian