Planning for retirement? Here’s what you need to know

Planning for retirement? Here’s what you need to know

If you’re considering retirement it’s important to have some kind of strategy. Of course, thinking about retirement income can be scary, but the sooner you begin to make a plan, the more peace of mind you will experience.

Here are some tips we gathered from ASIC’s Money Smart website.

Where does retirement income come from?

Most people accrue retirement income from a number of different sources. Of course, having more sources of income means your money will last longer during retirement. At least, in most cases.

Sometimes, one source of income may impact another. For example, if you sell your family property, this may lower or cut off your aged pension. For this reason, it’s important to know how each income source affects the other.

If you want to know how your Age Pension will impact your other income sources, ASIC recommends you speak with a Department of Human Services’ Financial Information Officer. (Head here for contact information.)

Here are other sources of income you may be able to draw from during your retirement:

Making a plan 

The first step in your plan should be to work out what money you currently have, and what you may have access to in the future. 

Create a list focusing on the following:

  • What are your assets (property, investments, savings)? How much are these assets worth?
  • How much superannuation do you have? When can you access it?
  • Are you eligible for the Age Pension? When can you apply?

If you’re unsure on the last two points, ASIC has a handy calculator, which tells you when you are eligible to receive your super and age pension.

Quick tips to stretch your retirement 

  • Get financial advice –for example if you have a large amount of super and would like to invest it, a financial planner can assist you with investment options and other important information.
  • Diversify – spreading out investments reduces the risk of financial heartache. Investing some money into assets that are likely to grow in time, such as property or shares, is also a good strategy.
  • Leverage entitlements –take advantage of all the entitlements on offer to you, such as travel concessions, lower rates and cheaper medicine. Seniors Cards also offer a number of discounts for over 55s.
  • Manage spending – simply planning your budget can make a big difference to what you spend. Use a budget planner to see what you’re spending, then work out what you can cut back on.
  • Work part-time –working part-time is a smart way to ease slowly into retirement, before stopping work completely. It also allows you to earn additional income.

Planning to retire?

Contact a financial planner to discuss how you can most effectively plan for retirement. It’s never too late or too early to have this important conversation with a professional. Plus, you get the peace of mind you deserve.

Get started now.

Financial Advice Disclaimer:The opinions and recommendations provided are not intended to be relied upon as personal advice as they do not take into account your personal circumstances.  You need to assess your own position or call us for professional advice.