Retirement Planning: What You Need to Know

If you’re nearing retirement, it’s time to do some planning to ensure you understand all options. A personal retirement checklist can ensure you don’t live to regret poor financial decisions.

Without a comprehensive retirement planning checklist and financial strategy, you may find yourself running out of money halfway through your golden years.

In Australia, you can retire whenever you want to; there really is no set age for it. However, factors must be considered here, such as your health, finances, employment opportunities, preferences and when you can access your super.

Here is a sample checklist you can use to guide you to your golden years:

Planning for Retirement in Australia

Retirement is for the rest of your life, so you need to take it seriously to make the right decisions.

Look beyond the holidays you plan and really think about what you intend to do every day in retirement. This will help you determine your financial requirements.

For example, if you like the finer things in life, then you will need more money to sustain that kind of lifestyle; therefore, you need to sit down and think about what you plan to do during retirement.

1. Make the Most of Your Super Fund

Your super fund is a critical source of tax-effective income for your retirement.

But how can you make sure your superannuation balance will be enough to fund your retirement life?

If you’re starting to plan for retirement early, you can make use of voluntary super contributions, as well as adjusting your super investment to a growth-focused strategy. It’s also wise to check if your super fund is providing the return you need to fund your future lifestyle.

If your retirement is nearing, it may be worth talking to a retirement financial adviser and evaluating if there is anything that you could implement to ensure you are on track to retire with enough money. 

You need to know you’re doing the right thing with your superannuation and investments before and during retirement. The guidance of an expert can help you develop a strategy tailored to your needs.

2. Have a Budget

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. Know Your Age Pension & Centrelink Entitlements

When you retire, you may be able to receive income from Centrelink Age Pension, or at the very least receive benefits and concessions on your health and expenses. As we age and our health declines the cost of medications and health care can be enormous. An expert can guide you on the best strategies, to increase your eligibility.

The majority of Australian retirees rely on an Age Pension as a source of income in retirement. 

Unfortunately, as eligibility criteria and payment rates consistently change, Centrelink can be difficult to navigate.

Christine Swanson, a Retirement Specialist in Adelaide can help you understand the Age Pension and help you get the maximum allowance you are entitled to.

4. Managing Your Debt in Retirement

Before you reach your retirement age, it is wise to eliminate all your debt. However, with inflation and rising house prices, sometimes total debt elimination isn’t always possible. No matter your personal situation, a debt management plan is essential.

A sound debt management plan can give you peace of mind in retirement and ensure you have enough income to cover your living expenses – as well as those little luxuries that you have enjoyed throughout your working life.

Plan Your Retirement Today with Financial Advisers in Adelaide

Although most of us have superannuation, many people haven’t started planning their retirement, even though it’s essential to start early.  Retirement planning is not one of those things we normally put on our to-do list.

Life is too short and flies by so quickly, to leave your financial security to chance. Starting planning for your retirement early is the best move you can make to secure your future.

Prominent Financial Services can help you achieve financial success with the help of our retirement financial planner. We will make sure you live through your retirement years the best way possible.

Contact us today to see how we can help!

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