Retirement – Exciting and Terrifying.
Adopt behaviours that move you toward greater financial security.
If you don’t take ownership of your retirement planning you may fail to achieve financial security before retirement. You should be considering your approach to transition to retirement five to ten years before retirement (if not earlier). Amongst other consideration, you should be thinking about issues such as health and housing.
According to Challenger Australia, approximately 700 Australians reach the retirement age of 65 every day. Unless the right preparation is completed many of you who walk out of the door of your workplace for the final time, will be ill-prepared for the transition psychologically and financially.
For decades, your lives have revolved around the workplace and relationships with colleagues and in some cases balancing the needs of children and grandchildren in the mix. When retirement arrives and you have to move away from your everyday routine into the unknown and find new ways to fill your days you feel unsure and confused.
You may end up becoming that overwhelmed and terrified you almost want to return to the workforce, just to regain some normalcy.
If you have set goals and have managed your finances properly during your working days, the next leg of the journey should be exciting.
The biggest focus on retirement is your superannuation and how much you will need to retire comfortably. You may ask what the “magic number is” for you to retire comfortably, our answer is, it depends on the type of lifestyle you want.
This is where preparation come into practice. You need to think about the type of lifestyle you want when you retire. As at the 9 December 2018, research indicated to retire “comfortably” you would need $61,000 per year for a couple. If you like to travel, still have children living at home or plan on renovating your house, you may need more than this figure.
Other terrifying aspects of retiring is how to access your money. Do you get it in a lump sum, a pension, what is a pension that comes from your superannuation? Is it different to the government pension? What if I still own money on my house? Oh this is all too hard I am not retiring, I am staying at work.
Retirement is another life stage. It is a time to refocus your efforts. If you have done the preparation it is EXCITING! Depending on what you want to do, you can travel, you can mentor someone in business, you can spend time with the grandkids, play in your garden, learn a new skill, the opportunities are endless. All it takes is some preparation and knowing what you want. We aren’t saying you are going to be a little lost or feeling a bit out of your depth, but it will go away. You will end up wondering how you ever fitted work into you busy lifestyle!
It comes back to what we have been saying the whole article. PREPARATION. Don’t wait until the last minute to work out what you want or look at your superannuation. Look at it today, see the balance and make an appointment with your financial adviser to work out what you need to do to achieve your goals.
Did you know that you can make your own contributions to your super? Pre or post tax. You can contribute into your spouses tax. Your super is one of the best ways to save money for your future. You don’t have to be Warren Buffet to have a comfortable retirement, you can achieve it by simply planning and working with your Financial Adviser to achieve the goals you want.
Don’t waste time, start today! Before you know it you will be on the road to a comfortable retirement and will transition easily into the new lifestyle stage.
The information provided in this BLOG is of a general nature only and has been provided without considering your objectives, financial situation or needs. Because of this you should consider whether the information is appropriate considering your objectives, financial situation and needs.