“It’s not what you retire from, it’s what you retire to that’s important.”
– Unknown Author –
We all have different expectations of what our ideal retirement looks like, many Australians leave the planning of their retirement to very late in their working life, or once they have retired. Whilst this isn’t ideal, it is understandable, we all live busy lives, and the complexity of planning for retirement can seem a daunting task. Regardless of when you start thinking about preparing for retirement, it’s never too late to engage a financial professional to make your retirement position even better.
Your Odyssey Financial Adviser will assist you by providing you with an awareness of where your retirement shortfalls may be, what steps can be made to improve your retirement position, and provide you with a clear plan for your future.
Option 1:
Below are some things you should start considering now as a basis to begin your retirement plan;
- When would I like to retire?
- What would I like to do before I retire?
- What position would I like to be in when I retire?
- What income would I like on an annual basis?
- What would I like to do in retirement?
Option 2:
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, interest, rental income and distributions or dividends from investments. Then, list assets such as Super balances, shares, managed funds, investment properties and cash in the bank. Then, list your 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 $61,061, 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. Engage a Professional
If the above steps seem complex and time consuming, that is because they are. Identifying these details about you, and what you want to achieve is integral to tailor a successful retirement plan.
Here at Odyssey we do our very best to streamline the process for you, taking on the responsibility of your financial management with a team of enthusiastic professionals working hard for your benefit. Engaging an Odyssey Financial Adviser will give you peace of mind that your retirement plan is on track, being managed by an experienced team who will work their very best to ensure you get the retirement you deserve.
