10 tips to prepare for retirement
With Jim Farrell, Senior Financial Adviser
Looking forward to an enjoyable retirement? Check out our top 10 tips to make sure you’re on track.
Tip 1: Take stock
How do you want to live in retirement? How much will it cost? Do the numbers. Now, what does your super balance look like? Do the figures meet your expectations? If not, what action do you need to take now?
Tip 2: Plan for the rest of your life
Most people are retired longer than they expect. While your health and family longevity will influence your life span, if you’ve survived life’s early risks, such as accidents or illnesses, you could easily live into your nineties or older. Plan for the long term, and don’t forget that you may need extra assistance or care as you get older.
Tip 3: Review your investments
For your savings to last the rest of your life, you need to invest for the long term. And that means getting the investment mix right with a balance of income and capital growth. Diversifying your investments across cash, fixed interest, shares and property can help to reduce risk and achieve smoother, more consistent returns over time.
Tip 4: Stick to your plan
Investments can quickly change in value. While it can be tempting to sell everything when the market falls and put all your money in cash, that can be a bad decision. It’s important to remain focused on the long term as markets can recover if given enough time.
Tip 5: Get the structure right
By changing the way you own investments and receive income, you may be able to reduce the amount of tax you pay while also increasing your Centrelink or DVA benefits. Even if you aren’t eligible for an age pension, you may be entitled to discounts and other benefits, which can save money over time.
Tip 6: Get your affairs in order
Estate planning allows you to pass on the right assets to the right people at the right time. The first step is putting a Will in place, but you should also speak with your solicitor about an Enduring Power of Attorney and medical care directive. These can help your family fulfil your wishes if you’re not able to make decisions yourself. And remember to review your estate plan at least every three years.
Tip 7: Stay fit and healthy
If you stay mentally and physically active, you’re more likely to enjoy a long and healthy life. Take up a hobby, learn a new skill, work part-time or volunteer in your community.
Tip 8: Re-think the move
Some retirees have moved away from friends and family to their dream location only to realise it wasn’t what they hoped for. If the coast or bush is beckoning, try living there on a temporary basis first. It will give you time to work out if it’s the right move.
Tip 9: Think about the “what ifs”
The last thing you need in retirement is for your finances to be affected if something unexpected happens to you. Review your personal insurance needs to make sure you are adequately protected. Don’t forget health and travel insurance cover, especially if you plan to join the grey nomads.
Tip 10: Get help
Making financial decisions can be complex. Getting the right advice early enough can make a big difference to your retirement. Give us a call.
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While every care has been taken in the preparation of this article, Soundbridge Pty Ltd (ABN 40 151 134 146) and AFTA Pty Ltd (ABN 18 624 984 550, AFSL 507423) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts.
The information and any advice provided in this document is general and has been prepared without taking into account your objectives, financial situation or needs, and might not be appropriate to your situation. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to those things. Past performance is not a reliable indicator of future performance. AFTA Pty Ltd does not warrant that future forecasts are guaranteed to occur.
The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases, the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Opinions constitute our judgement at the time of issue and are subject to change. Neither the Licensee nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document.
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Posted on November 27th, 2020