It’s always good to plan things early. When it comes to your retirement, starting your plans early is essential.
When you reach retirement age, you will finally be able to kick back, relax, and enjoy the fruits of your labour. You’ve been working hard your entire life so you deserve a little relaxation time.
However, a common misconception when it comes to retirement planning is that it’s easy.
Let me tell you this: it’s not.
Planning for your retirement is not just about earning money to spend in your later years or putting a little bit aside into your savings fund. A strong retirement plan involves so much more than that.
If you’re looking to prepare for your retirement, there are so many factors to consider.
While it’s never too late to start your plan, starting early will give you more opportunities to take control of your financial future.
Below are some of the most crucial things to consider:
Keep Your Expenses in Mind
Many Australians think that once they retire, they won’t have as many daily living expenses to worry about.
However, your living expenses may even be higher than what you’re used to! What’s more, is that your golden years are a time for you to do the things you truly love.
Since you’re no longer working, you might want to travel, or even start a new hobby. These things all cost money. But as long as you have a personal financial plan, you can be confident your retirement years will be enjoyable and relaxing.
There is no point working so hard until retirement only to find out that you don’t have enough savings to do the things you want!
Don’t Rely on Inheritance
No, not everyone receives an inheritance.
While many of us aim to provide our children or grandchildren with a nest egg for the future, unfortunately this goal doesn’t always go to plan.
There are all sorts of situations that could arise that mean your planned inheritance needs to be used for other financial situations. Sometimes an unexpected medical condition can be costly and your parents or grandparents may need to use their savings for medical costs or aged care.
No matter what you may be expecting, it’s not a sound plan to solely rely on inheritance money to fund your own retirement.
Reduce Debts at All Costs
While many debts are absolutely essential and can actually help you to accumulate wealth, entering into your retirement years with a significant amount of debt to pay off can be extremely stressful.
While you can pay these debts off with your retirement fund, this could mean you don’t get to live your retirement the way you’ve always dreamed off.
It can be difficult to feel financially secure with large debts on your shoulders and debts can also leave you financially exposed in a market downturn or when interest rates rise. If possible, try to reduce your debts as much as possible as you approach your golden years.
Make Smart Investments
Investments can help fund your retirement lifestyle. However, you have to keep in mind that not all investments are lucrative. You have to make smart, careful decisions when you invest for the long-term. You should always invest within your limits and never overinvest. Seek professional financial advice to help you construct an investment portfolio for success.
Don’t Touch Your Retirement Fund Until You Hit Retirement Age
Keeping your retirement fund intact is a pretty standard measure to take and certainly the easiest. If you start saving up very early on, it’s essential to keep in mind that a part of your savings should go to your retirement fund.
Not accessing your retirement fund is made a lot easier if most of your retirement savings are in your superannuation account. However, if you have extra savings and other investments, be sure you budget for your entire retirement years and aim not to spend your retirement savings (outside of super) before you retire.
It’s never too late to plan for your retirement.
While it can be daunting to do so, experts always advise that you start thinking about retirement sooner rather than later. Starting to save and plan your finances from an early age can make a big difference for your future.
If you take note of the mentioned tips to plan for your retirement and seek guidance from a financial planner, you will be on your way to a hassle-free retirement.
Everyone wants to enjoy their golden years with peace and financial security. If you need help with retirement planning in Gold Coast, Cambio Group believes you deserve the best possible future.
Contact us today to book your complimentary, initial appointment with our Retirement Planning Specialists.
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.
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