Planning for your future is important. However, one aspect in retirement planning most people often forget to consider is their life expectancy. To know how much you need to save, you have to account for the number of years you’re going to be living without a job. And so, if you’re only saving with the assumption that you will only survive until your 70s, you may not be financially equipped when you reach your 80s.

If you want to save enough to last you through your retirement, you need to have a robust financial plan. Here are some tips to get started on your financial planning journey: 

1. Consider the Health Aspect 

Your health and well-being are among the most important factors to look at when planning for your future. Remember, you’re not just saving money for your daily activities in retirement. You also have to set aside savings for certain emergencies that may involve your health.

For example, if you’re already living an unhealthy lifestyle right now, you will have a higher chance of getting sick as you grow older. This often means you’ve got to pay heaps of medical bills in the future. 

And even if you live a healthy lifestyle right now, there’s still a chance of getting age-related illnesses such as Alzheimer’s disease or dementia. So, while investing in your health in the present is crucial, you still need to prepare for the worst. So, it is only imperative to know and understand your health or life insurance policies coverage. Knowing this can help you estimate the amount of money you need to save for medical expenses not covered by your insurance.

2. Rethink Your Investments

If you want to ensure a financially secure future, you have to review your investment strategies. It entails finding more ways to diversify your portfolio and get long-term gains. 

In the past, the general rule involved subtracting your current age from 100 to get the proportion of investments in growth assets. However, with longer life expectancies, this may not work as well. So, it’s best to balance your short-term need for liquidity with your long-term need for investment growth. 

3. Seek Professional Financial Advice

Everyone’s situation is different, which is why it can be difficult to devise a financial plan for your specific situation and needs without adequate knowledge on the matter. It’s always best to seek professional financial advice to help you figure out the best course of action.

A qualified financial adviser will be better equipped to examine your financial situation and recommend the appropriate solutions. They can help you develop a long-term financial plan that is more effective and appropriate for your situation. 

Final Thoughts

When it comes to retirement planning, it is crucial to consider your life expectancy. When you don’t save enough money to last your entire retirement, you will be left with financial burdens in your later years. So, it’s crucial to carefully think about your health and review your investment strategies.

You can also hire a financial adviser to help you create a solid plan for your future. Plan for your retirement with the help of Coastal Advice Group. We are financial advisers in Australia that cater to all stages of life from young professionals to retirement through to aged care. Our commitment is to promote a culture of excellence within the business and support our clients to create their ideal retirement lifestyle. Get in touch with us today!

 

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, Coastal Advice Port Macquarie, and Sydney Wealth Advisers are subsidiaries of Coastal Advice Group which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429