Retirement is a time in our lives when we should be able to spend our time doing the things that we enjoy. It is the reward for working hard all our lives. It is great to have plans and expectations for retirement, but to be frank, if we don’t have the financial means to support ourselves during retirement, then some of those plans may never come to fruition.
What Does The Ideal Retirement Look Like?
The answer to this question is different for everyone. Some people may want to sell up and become a grey nomads, others may want to continue living in their family home and take overseas trips every couple of years, or some may want to down size their home and use their retirement to help out with grandchildren. Whatever your ideal retirement, it needs to be considered and quantified so that the running costs (i.e. how much it will cost to fund your retirement lifestyle) can be calculated.
Enjoying yourself and having a fulfilling life is what retirement is about. It is important that when planning for retirement you take the time to really consider what you want your life to look like post work.
When Should I Start Planning For My Retirement?
It is best to start planning for your retirement as soon as possible; now really. The sooner you start, the easier it is to achieve your goals. Long term investing will allow for compound interest and will help your money go further.
Will I Have Enough To Retire On?
It is projected that a lump sum of $640,000 will be required to support a comfortable lifestyle for a couple. However, what is a “comfortable lifestyle” and is it within the means of what you want your retirement to look like or does that actually seem quite uncomfortable to you?
Another way to estimate how much money the average person or couple will need yearly for retirement is to calculate 60-80% of their pre-retirement annual income. But once again these are just estimates. It is important to thoroughly consider what you want your retirement to consist of and plan from there.
Many Australians are concerned about their futures. According to MLC white paper 2016 – ‘Close to three in five (56%) were concerned about being able to maintain their lifestyle in 10 years’ time, with those aged 50–70 (61%)—who are more likely to be either already retired or approaching retirement—more likely to worry about being able to keep the same lifestyle’. Seeing a financial planner can help alleviate the stress, it can make a significant difference in the quality of life after work.
Where Should I Seek Advice?
Take action now. Either do things yourself or seek support from a professional. A CERTIFIED FINANCIAL PLANNER™ (CFP®) are the most qualified to help you achieve your retirement goals. Contact Elliot Watson CFP® for a complimentary initial consultation to find out how he can help your achieve your financial and retirement goals. Elliot has helped hundreds of clients plan for and achieve the retirement of their dreams. To hear firsthand how Elliot has helped, visit Retirement Testimonials.
How Should I Plan For My Retirement?
Putting money away into superannuation is the best investment vehicle for retirement. However, it is not the only strategy. Some people consider selling their family home and downsizing, others invest in property throughout their lives in order to provide an additional retirement nest egg. For others their superannuation might not be enough on its own and they will need to access their superannuation, the age pension and other personal investment assets to fund their retirement. This is known as the three pillar strategy. In consultation with a CERTIFIED FINANCIAL PLANNER™ you can strategise and plan how best to fund your retirement.
Why Do I Need An Estate Plan?
Estate plans help ensure that you assets are appropriately transferred to the heirs of your choice. They can help minimise taxes, transfer costs and reduce family disputes. Although not an enjoyable task it is important that you consult your financial planner and solicitor on how to best transfer your estate upon your passing. For more information, visit Estate Planning.
Who Is Elliot Watson?
Elliot Watson is an award winning CERTIFIED FINANCIAL PLANNER™ and enjoys helping clients achieve their financial goals. He is committed to building strong relationships with clients built on a foundation of open and honest communication. If you would like help achieving your financial goals contact Elliot on 0409 931 984 for a complimentary initial consultation.
For more information, visit Retirement Planning.
The information (including taxation) in this article does not consider your personal circumstances and is of a general nature only – unless otherwise stated. You should not act on the information provided without first obtaining professional advice specific to your circumstances.