Get peace of mind with a tailored retirement plan

Preparing for a comfortable retirement is a common goal people strive towards during their entire working life. From a personal and financial perspective, reaching a comfortable retirement is an extensive process that takes sensible planning and years of persistence. Once reached, managing your retirement is an ongoing responsibility that carries on well into your later years.

Australians today will have more time than ever to enjoy their retirement, with most of us likely to spend more than a quarter of our lives in retirement [1]. It’s important to have enough money to maintain your current lifestyle when you finish working.

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While all of us would like a comfortable retirement, the complexity and time required to plan for this can make the process seem daunting. An Elders Financial Planning adviser can provide you with advice and support each step of the way. Below are the things you should start considering now, to achieve the retirement lifestyle you want later:

1. Assess Your Current Situation

Start by evaluating your current situation. Make a list of your income, such as salary, wages and investments. Then, list outgoings and include debts such as home loans, car loans, and/or credit cards. Finally, personal information such as your age, gender and your health can help you establish how many working years you have until you retire, how long you’re likely to spend in retirement, as well as any known potential medical expenses that might come up.

2. Create Your Retirement Aspirations

The annual living costs for a couple to live a ‘comfortable’ retirement is $58,922 [2], but this may vary for each individual depending on the lifestyle you want in retirement. Draft an extensive list of what you want to do in your retirement – from the age you want to retire to plans of travel. This will help you establish your required monthly income and highlight any discrepancies between the finances you have and what you’ll need.

3. Maximise Your Financial Assets

Now that you’ve assessed your current situation and outlined your goals, you need to consider how to maximise your savings and investments in the time you have. Superannuation alone can provide various tax effective saving options from salary sacrifice to after-tax super contributions. You should also consider if your current investments are still suited to your risk tolerance and years to retirement.

4. Transition to Retirement

Tax-effective transition to retirement strategies are a great way to help you boost your super balance and make your retirement savings go further. From the age of 55, you can supplement your income with a pre-retirement pension – a regular income stream drawn from your super savings. In most cases, you’ll pay less tax on income received through a pre-retirement pension than you would on the same amount of salary or wages.

5. Speak to an Elders Financial Adviser

The earlier you begin to action your financial plan, the higher likelihood you will enjoy the retirement you want. If you delay planning your retirement and seeking professional planning advice, it may be too late to arrange your affairs in the most tax effective manner.

It can be a daunting task to keep up with changes to legislation or to begin the initial draft of your retirement plan. A financial planning professional at Elders can help provide the advice and support you need each step of the way.

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[1] The Association of Superannuation Funds of Australia Limited, www.superguru.com.au
[2] https://www.moneysmart.gov.au/superannuation-and-retirement/how-super-works/super-contributions/how-much-is-enough

Prepare for retirement by creating a plan with our advisers.

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