Retirement seems like lightyears away from now, but it’s a goal that many responsible adults hope to obtain as the years go by. Preparing earlier on, or at least within the 10 to 15-year window prior to retirement, is crucial to ensure your dreams of achieving financial wellness become a reality.
Sitting down with your financial advisor is only half the battle, the next step to ensuring you create a sustainable future for yourself and your family is to ask key questions. After all, a successful retirement plan isn’t all about having enough money, so the list below should help shed some light on crucial factors worth considering for an effective transition into retirement:
1. What Do You Want to Do During Your Retirement Years?
A person that plans on spending a quiet life at home for the rest of their later years will be completely different from someone who has travel plans, so the best way to start your retirement in the right direction is to understand the “why” behind your financial goals.
Think about how you will spend your retirement – if it involves frequent travels with the family, vacation plans, or if you’ll be taking the first steps of your life-long dream of starting your own business. Don’t forget to consider where you’ll live, and if your current family home is where you can picture yourself for years to come.
2. How Long will the Retirement Last?
This is a simple question that most adults overlook, but remember that your life expectancy will greatly impact your retirement plan. It’s an uncomfortable thought for many, but the reality is that it’s important to anticipate how long your cost of retirement should be based on your honest assessment of your health.
Don’t forget to consider your spouse in the picture, especially losing your partner will also have major changes with your contingency plan. While no one enjoys thinking about death, preparing for it will do wonders to improve your quality of life for the rest of your days.
3. How Much Money Do I Need?
It’s difficult to pinpoint the exact amount of money you need to ensure a sustainable and cushy lifestyle, though there is a standard set that anyone is free to follow. According to the Association of Superannuation Funds of Australia (ASFA), the ideal savings you should set for your retirement should be around $62,000 a year for home-owning couples.
On the other hand, a single person can lead a comfortable life with $44,000 a year, though be sure to consider it as a starting point only. It should add up according to your unique needs.
The Bottom Line: The Importance of Planning for Your Future Retirement and Addressing Critical Issues Early On
If you’re looking for reputable and reliable financial advisors in Australia that can help you develop the best retirement plans, we offer client-centric and comprehensive financial planning services on the Gold Coast.
We believe that wealth is best measured in the quality of life, so get in touch with us today at 07 5504 1999 and see what we can do to ensure you achieve financial security well into your future.
