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5 Tips To Define Your Spending Goals During Retirement

October 24, 2022 | Retirement Planning

One of the biggest challenges during retirement is learning to live on a fixed income. This can be a difficult task, especially if you are used to a certain lifestyle. After all, you’re not earning anymore, and if you keep up your existing spending habits, you may not have enough money to last. Fortunately, it is possible to make retirement work for you if you are careful about setting and sticking to spending goals during retirement.

So let’s get started! Here are five tips to help you set achievable, realistic retirement spending goals:

1. Define Your Goals

What do you want to do in retirement? Do you want to travel? Spend time with family and friends? Pursue a hobby? Whatever your goals may be, it is important to have a clear idea of what you want to do with your time and how much these activities will cost. This will help you better plan your spending.

2. Make a Budget

Once you have defined your goals, you need to sit down and figure out how much money you will need to accomplish them. Make a list of your regular expenses and try to estimate how much you will need for incidentals. When you have a clear idea of your weekly, monthly and annual expenses, you can start planning a budget that makes sense and doesn’t put too many tight restrictions on yourself.

The MoneySmart Budget Planner is a free tool you can use to get started.

3. Consider Your Sources of Income

In retirement, your sources of income will likely be different than they were during your working years. You will no longer have a regular salary coming in, so you will need to be mindful of how you are spending your money. Make sure you are aware of all of your sources of income, such as Centrelink Age Pension, superannuation pensions/income streams, and investment income.

4. Set Limits

Once you have a budget in mind, it is important to set limits on your spending. This will help you stay on track and avoid overspending. Figure out what you can afford to spend on each of your goals and stick to that amount. Of course, you can always adapt your goals should your spending change, but do your best to set limits at all times. This will reduce the risk of running out of money.

5. Review Your Spending

Retirement can be a time of big changes, so it is important to regularly review your spending and make adjustments as needed. If your income changes or your expenses go up, you may need to revise your budget. By being mindful of your spending, you can make sure you are staying on track and making the most of your retirement.

Achieve Your Spending Goals During Retirement with Coastal Advice Ballina Byron

Planning finances is a tough job, especially when it revolves around your money during retirement. However, this effort must be made to ensure that when you’ve retired from work and are enjoying your life, you do not run into any financial problems. So, dedicating time to defining your spending goals during retirement is critical. If you need help, feel free to reach out to retirement financial advisers to assist you in planning your finances for now and the future!

If you are looking for an experienced financial adviser that offers retirement planning in Byron Bay, Ballina and the Northern Rivers you should speak to Coastal Advice Ballina Byron. With our guidance, we can structure a personalised plan for you so that you can face your retirement with peace of mind and enthusiasm! Call us or book online to secure your complimentary first meeting with our advice team!

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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.