Superannuation is essential to retirement planning in Australia. It is a mandatory, long-term saving and…
You’ve most likely heard the phrase: “It’s never too early to get started with retirement planning in Australia.” That’s because the earlier you begin, the more time you have to save, and the more likely you will achieve your retirement goals.
There are key things to consider when planning for retirement, including when you want to retire, how much money you’ll need to live comfortably, and how to generate income in retirement.
Here are simple tips to get you started on financial planning for your retirement:
Create A Long-Life Plan
Ensuring your money will endure the distance, however long that may be, is the difficulty.
Although you might desire to retire at 60, your current retirement nest egg may not allow for that – meaning that you will need to rely on the Age Pension for the rest of your life.
Another scenario is a younger spouse who will need to rely on the income from your investments after your passing.
Also, remember that your purchase habits may alter as you age and your lifestyle changes.
The average retiree transitions in three stages. Although the phases are in the same order, each person will experience them at a different time.
The early, active years of retirement, when you are more likely to travel and spend time away from home, as well as the later years when expenditures for health and aged care grow considerably, are when you should anticipate spending more money.
Spending typically decreases in the middle years when the effects of ageing are more noticeable, and minor health issues manifest. You are more likely to live locally and simply when your level of activity and mobility declines.
Aged care is the most expensive and neglected aspect of retirement preparation. Most of us would want to age at home, yet many of us will pass away in an assisted care facility.
Government subsidies may lower out-of-pocket expenses, but having money will expand your alternatives and increase your access to high-quality care at home or in an assisted living facility.
The AFSA Detailed Retirement Expenditure Breakdowns list the weekly and annual expenditure required for both comfortable and modest lifestyles in retirement, for both couples and singles.
Check How Much You Currently Have
By adding up the money you have already saved in and out of super, you may determine how close you are to realising your ideal retirement.
Run an inventory of all financial assets you plan to use for your retirement funding. To determine your current net savings, deduct your debts, such as any outstanding loans and credit card debt.
Schedule To Accomplish Your Goal
If you continue with your current savings plan, you can now estimate how much money you would likely have when you want to retire and how much retirement income it would offer. Because it is impossible to anticipate future market behaviour, interest rates, and governmental measures, this will be the best guess.
Kickstart Your Retirement Planning Today!
There are numerous things to consider when determining how much money you’ll need to sustain the retirement lifestyle of your choice and what you can afford. The quantity of your super and other assets, their return, your other sources of income, and your spending habits are only a few of these variables.
The earlier you plan, eliminate any financial gaps, and the more support you get from your professional retirement planner – the greater your chances of succeeding.
Young professionals, retirees, and those in elderly care are just a few of the clientele that the financial advisers at Coastal Advice Group assist. We have offices located in Newcastle, the Central Coast, Sydney, Port Macquarie, and Byron Bay. Call us or book online to secure your complimentary first appointment with us today and get started!
DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.