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How to Know If You’re Financially Ready for Retirement

As soon as we enter the workforce, most of us spend the next several decades of our lives chasing job opportunities, growing income, leading bigger roles, and managing more assets. At the same time, we are planning for what comes after. Whether you plan to retire at 50 or 65, keeping an eye on the future is crucial for ensuring you can maintain a good lifestyle in your golden years.

Knowing how to approach retirement with the right “retirement mentality” may spell the difference between living in uncertainty and anxiety and living in the freedom to make new experiences throughout your retirement years. Understanding the new concepts may ultimately provide the groundwork for having the proper attitude in having a wonderful retirement. Here are some tips to help you prepare:

Accept the Fact That the Rules Have Changed

Some of you may have realised the necessity of saving regularly via the use of instruments such as super funds, high-interest savings, and brokerage accounts. It didn’t matter whatever method you used to save; the important thing is that you did something to pool and grow funds for your retirement.

As you approach retirement, your primary emphasis should shift from wealth accumulation to preservation and distribution. The methods and mechanisms used to assist in accumulating net worth are vastly different from the strategies and tools employed to guarantee the freedom to make decisions in retirement.

Realise You Can No Longer Operate on Autopilot

A solid foundation should include a strategy for managing your income, assets, taxes, health care, and legacy, among other things. These critical aspects of your financial life were likely operating on autopilot in some capacity for many people.

For company owners and employees alike, your income is the money that comes into your bank account throughout the month. Investments may be as simple as bi-weekly payments to your company’s retirement plan that you can set and forget. Often, tax preparation is overlooked since you get used to having a comparable tax obligation from one year to the next. We expect health insurance premiums to steadily increase year on year, and the legacy plan may be a will we created while our children were still small and in need of protection. When you’re planning for retirement, running on autopilot may not suffice. You need to be proactive with your decisions and find ways to understand your unique situation.

Consider Working with An Expert

Because the regulations for retirement are different, it is critical to carefully evaluate the benefits of working with a financial adviser who specialises in retirement planning. Hiring a financial expert may be beneficial at this time of life, just as it can be beneficial for older people to collaborate with health specialists later in life. It is necessary since the tactics required at this stage of life are significantly different from those required earlier.

Think About Where You Will Reside

The location of your retirement may have a significant impact on your expenditures. In the case of selling your larger family home and downsizing to an apartment or villa you may notice that your property maintenance and utilities expenses may drop or the difference between your sale price and purchase price could leave you with a nice nest egg.

Are you Ready for Retirement?

When your projected retirement date is more than a decade away, it may seem like a far-off prospect to consider. However, it is essential to plan appropriately and establish realistic objectives to ensure that time is on your side and that you have the resources to enjoy the kind of retirement you have always dreamt of having. While it’s essential to recognise that you are not alone, if you began saving and investing for retirement late or haven’t begun yet, it’s also important to understand that there are measures you can take to improve your retirement situation before it’s too late.

If you are looking for seasoned advisers to guide you in your retirement planning, Coastal Advice Group is your best option! We can provide you with expert services like retirement financial advice, wealth management, and more! Book a complimentary initial appointment with one of our advisers today! We have offices located in Newcastle, the Central Coast, Sydney, Port Macquarie, and Byron Bay. Call 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, 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
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