Tips for creating the retirement you want today!
Our Authorised Representatives from OzPlan Financial Services bring you another article:
Tips for creating the retirement you want, today!
Even if you don’t plan to retire until you may be eligible for the Age Pension – there are small steps you can take now to secure your future after work. Given your retirement could make up much of your lifetime – you’ll want to enjoy it.
1. Do you want to retire at a certain age?
While Australia doesn’t have an official retirement age, there are some factors to consider when determining what age you might stop work. You might retire when you’re eligible for the Age Pension, or when you reach your Preservation Age – the age when you can access your super.
Your profession, health, family circumstances, or individual preference might also influence your retirement age. The crucial point to remember is, if you retire early, the longer you’ll be relying on your super and savings, and the more you’ll need to have saved to support you.
2. Add a little more into your Super now
You could consider asking your employer about setting up a salary sacrifice arrangement for your super. You could find, depending on your salary, you may save on tax. Super is a long-term relationship – the more attention you give it, the greater the potential. Even salary sacrificing a small amount now – like the cost of one takeaway lunch a week – can make a difference to your super balance over the longer term.
3. Review your investments approach
Looking at how your super investment structure could make a big difference to your retirement savings goals. If you still have many years left in the workforce, you it is best to look at what your risk appetite is, and consider a higher risk, higher return approach to your investment strategy. A Financial Adviser could help you work out what investment strategy may suit your needs.
4. What’s on your to-do list in retirement?
It’s important to think about how you want to structure your time when you retire, well before you leave full-time work. It’s normal to have different views about what makes up a dream retirement.
Think through your expectations about travel plans, making a sea or tree change and pursuing a hobby or even a new business. It’s also wise to consider financially whether and how you want to assist your children or care for elderly relatives. Or consider continuing working part time, while balancing your other life interests. You should take these factors into account when planning how you want to fund your retirement, as well as the type of lifestyle you will lead
5. Protection for the unexpected
If you have insurance in your super, it is best to check if your cover still suits you, and your family’s needs.
No matter what your financial position is today, an unexpected event can see it all unravel quickly. Insurance cover can help so that if there is an unforeseen event, you and your family can hopefully continue to move forward – and it can lessen the impact to your retirement savings.
6. Look at your debts
Will you be entering retirement debt-free? Repaying as much of your debts as possible before you retire can make a big difference to your lifestyle and the funds you’ll have available in retirement. While building your retirement savings, also consider a proactive plan to clear your debt by using any free cash flow to reduce the amount you owe to strengthen your financial position. You may also want to consider any benefits gained from rolling your debts into one or using another provider that offers lower rates and fees.
How can we help?
If you have questions you would like answered, or need help with your retirement planning, please reach out to the OzPlan Financial Services team who have had extensive experience in this area on 03 5821 9177 and speak with one of our leading certified advisers.
This publication has been compiled by OzPlan Financial Services, ABN 35 005 391 202 AFSL 221235 and is current as at time of preparation, July 2021.
Material contained in this publication is an overview or summary only and it should not be considered a comprehensive statement on any matter nor relied upon as such.
The information and any advice in this publication do not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it.
This publication may contain material provided directly by third parties and is given in good faith and has been derived from sources believed to be reliable but has not been independently verified. To the maximum extent permitted by law: no guarantee, representation or warranty is given that any information or advice in this publication is complete, accurate, up-to-date or fit for any purpose.
It is important that your personal circumstances are taken into account before making any financial decision, and we recommend you seek detailed and specific advice from a suitably qualified adviser before acting on any information or advice in this publication.
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