How far away is your retirement and how long do you expect to be in retirement?
According to the ABS, men in Australia can expect to live up to an average of 81.2 years, while women can expect to live for 85.3 years.1
Based on these numbers and the age of retirement, one can easily expect to live roughly 20 years or more in their retirement. While that might seem short in the grand scheme of things, it really is still quite a long time – especially to financially prepare for. Plus, that’s only the average, and one can expect to live past 90 years of age!
Not to mention, you have worked hard your entire life, and retirement is something you should look forward to. By planning ahead and having the right financial strategies in place for your retirement, you can ensure you are on the right track to gaining financial freedom and achieving your ideal retirement.
Ready to start planning for your retirement?
Plan ahead to ensure your finances are on track to go the distance for your ideal retirement.
Here are some tips to help you plan for your retirement effectively:
1. Consider What Your Lifestyle Needs Are:
If you’re looking to retire in the next 10 years, it’s important to ensure you have all your finances in place so you can live a stress-free and comfortable retirement.
But, how do you know if your finances are on track?
First, you may want to ask yourself:
What does your ideal retirement look like?
When asking yourself this, you should consider things like whether you want to travel overseas, take up a new hobby, or renovate your home. Once you have gained an understanding of what a comfortable retirement looks like to you, it’s important to weigh up the costs that are included in this plan.
Seeking advice from a retirement planner can provide you with financial strategies that are tailored to your retirement goals, so you can be on track to achieving your dream retirement lifestyle.
2. Create a Budget To Help You Manage Your Cash Flow For Retirement
A budget is essential at any age and stage of life, it is the foundation of any good financial strategy, especially if you are retiring or already retired.
A well-structured cash flow strategy will help you live within your means and also help you plan a similar lifestyle in retirement that you have today. A budget will also show the funds available that can be directed into planning to ensure you have enough money to make it through your retirement years.
A budget should be a lifestyle choice; it puts you in control of your finances and helps you make informed decisions between needs and wants. Making better financial decisions short term provides you with longer-term financial rewards.
Considering that life expectancy in Australia is increasing, your retirement funds may need to last a lot longer than you originally expected!
3. Consider Investing for Retirement
Investing your money may help you grow your retirement savings and keep you on track to achieving your ideal retirement.
With inflation on the rise, keeping your money in a savings account means you may actually lose money by the time you retire. But investments can help your money to continue growing in line – or ahead – of inflation.
Investments for your retirement also include your superannuation. You may want to check how your savings are being invested by your super fund by checking that your portfolio that matches your risk tolerance and timeframe.
Investing for your retirement may also include creating an investment portfolio outside of your super. You could explore investment options with an experienced retirement planner who can tailor their advice to suit your risk tolerance and goals.
These options may include:
- Equities
- Annuities
- Bonds
- Real Estate
By gaining personalised financial advice, you can make informed investment choices, and grow your retirement savings – getting you one step closer to achieving your ideal retirement.
Plan Your Retirement Today with Financial Advisers in Adelaide
If you’re planning for your retirement, you need to make sure you are doing everything you can to ensure that your nest egg goes the distance of your retired years. To begin your retirement plan, it’s important you are aware of all your options so you can maximise your retirement savings and gain peace of mind knowing you’re on track to achieving your retirement goals.
If you need help planning ahead for your retirement, you may want to seek an experienced financial planner in Adelaide. They can help you create a financial plan tailored to your financial goals and personal situation, allowing you to gain financial freedom for your golden years!
Prominent Financial Services provides Australians with financial success, satisfaction, and confidence to make the right decisions for their future. If you are looking for a retirement financial planner, Contact us today by booking a FREE discovery call with our expert financial planning team!
References:
- https://www.abs.gov.au/statistics/people/population/life-tables/latest-release
