16 Mar 2018
At some point we're all going to retire. Whether we leave a job or sell our business we'll need to know how we're going to live the golden part of our life. Most of us think of retirement as a time of freedom to ‘do our own thing’. For many it’s an opportunity to seek fresh challenges in a different area of paid or unpaid work, learn new skills, help others or take up studies. Others travel or get fit to enjoy what may be as many years out of the workforce as those in it. That’s why it is essential to plan to ensure you are prepared. When it comes to planning for retirement, it would be easy to get overwhelmed. After all, planning for retirement is often complicated and confusing — there always seem to be new laws, regulations, products and the like that make it harder rather than easier to save and invest for retirement. No two retirement financial plans are exactly the same. There are many things to consider when planning for retirement such as the lifestyle you want, where you want to live, how much income you will need and the best way to transition to retirement. That’s why seeking advice is so important. According to the Financial Planning Association of Australia, 50% of Australians are concerned they do not have enough money to retire on. In our own experience, we also know that those who do have enough, are worried about making it last and transferring it safely to the next generation. An even greater number of over-50s have no idea how much money they will need post-work, according to the research paper released recently by REST Industry Super. Longer life spans have changed the shape of retirement – and society. Governments are making changes to retirement ages & Age Pension may be around when you retire, but the benefit that you get from Centrelink may not provide enough income for your retirement years. On top of that, people are living longer and must find ways to fund those additional years of retirement. Such eye-opening facts mean that today, sound retirement planning is critical. Your retirement planning process we help you answer the big questions in relation to your retirement such as:
- Where should my money be invested?
- How much superannuation will I need to build up?
- What other investments do I need to make?
- Is my retirement planning strategy tax smart?
- What is the financial game plan before and after retirement?
- How do I get the social security entitlements while minimising tax?
- How do I protect myself from running out of money in retirement?
- What are some of the unexpected occurrences and contingencies I need to factor in?
- Achieving adequate income;
- Hedging against future inflation growth;
- Adequate asset allocation (to deal with the unexpected);
- Impact of tax if funds are outside the superannuation environment;
- Protecting your capital and
- The danger of eventually running out of private resources and having to rely solely on the Age Pension.