3 Essential Factors to Create Your Dream Retirement Plan

A common misconception when talking about retirement planning is that only older adults need it. But the truth is that it is much better to start creating a retirement plan as early as you can in your working life. 

After all, nobody deserves to worry about running out of money in their retirement.

For a more peaceful and enjoyable retirement, you should have a retirement plan in place as soon as possible. Here are three things you should take note of while planning for your perfect retirement.

1. How Long You Have before You Want to Retire

Time is one of the reasons you should start planning early. 

If you start late, which means you are close to the time of your retirement, you may not be able to save as much or have as much time to let your money grow through compound interest. 

While the most common retirement age is 65, if you plan ahead, you may be able to retire earlier. If you have had a long, demanding career, you may want to consider an early retirement so you can take a well-deserved break to relax.

Whenever you plan to retire, determining how many years you have to plan will help your money go further.

2. Your Retirement Budget

To remain financially healthy in the long run, it’s imperative to track your expenses. Be aware of how much you spend each month. Doing so will help you determine what your living expenses are and how much you need to save for retirement.

It’s important to note that your budget and living expenses will likely change over time depending on where you are in your life. Many people think they will spend far less in retirement – as they may not have a mortgage and don’t need to pay for their daily work commute. Maybe you’re even thinking of downsizing your home or moving out of the city to a cheaper, more relaxing town?

While there are plenty of ways to save money in retirement and still enjoy your dream lifestyle, don’t forget to plan for unexpected expenses. Leisure activities you may want to do throughout retirement can also take up a lot of your budget. Plus, it’s always important to consider potential medical and healthcare costs that may provide a financial challenge. 

If you want to more accurately predict your budget and financial needs in retirement. Consult a financial planner to help you.

3. Possible Passive Income Sources

When you retire, it’s so important to identify potential income streams. 

While you will have your superannuation fund, it may not be enough. Consider setting up passive income sources such as a rental property or investing in a business that doesn’t take up your retirement time – something that requires minimal to no effort.

Retirement Planning in Australia

Retirement planning should be considered at the early stages of your professional life. This will let you build up your savings for the time you finally stop working. The earlier you begin, the easier time you will have in preparing for a financially secure and worry-free retirement.

Finance professionals can help with retirement planning in Australia, such as our experts at Cambio Group. Please feel free to book an appointment with us and discuss your decisions about your retirement. 

We aim to help everyone achieve their perfect retirement with confidence and peace of mind their finances are on track. Book a complimentary appointment with our financial advisors in the Gold Coast today. 

Disclaimer: The information (including taxation) in this website 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.