Planning for retirement can be last on people’s list of things to do. In a survey conducted by the Australian Bureau of Statistics, 46 per cent of 3.9 million retirees around 2018 and 2019 retired because they reached the retirement age or became eligible for superannuation.
Although retirement should be a break from years of hard work, it can also be challenging for most people. In Australia, most retirees rely on the government pension as their source of income. Meanwhile, 36 per cent of retired women rely on their partner’s income to meet their living costs. For people intending to retire, financial security will always be an influential factor.
If you’re planning to retire on or before 65, it’s best to plan to avoid any circumstances that might offset your savings. Nowadays, some people plan as early as their 30s to ensure that their future is stable and financial stability is still in their hands.
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Considering an Allocated Pension
Superannuation is a great deal for most Australians. Although it is an untouchable fund until retirement or withdrawal, it is an excellent way to save up for retirement. Since the goal of superannuation is to provide employees with a financial resource during retirement, the funds invested in it are usually without any tax implications to help the balance grow.
Another option for employees is to make their superannuation into a Transition to Retirement Pension (TTRP). The plan allows employees to supplement their income by accessing some of their superannuation funds once they’ve reached their preservation age. Allocation pensions allow employees to have capital gains and advantages while dodging any income tax.
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Planning Early
People think that planning for their retirement is not necessary. However, laying down things to accomplish before you’re ready to leave the workforce should be a priority—even for people new in the workforce. If you have targets right now, you should also have a goal during your retirement.
There isn’t much difference between your lifestyle today and the lifestyle you will have then. It’s better to prepare for the shift to being a retiree than not knowing what to do the first time you’re out of the office.
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Taking Care of Your Health
Medical expenses can get a lot cheaper for people who reached the retirement age. As soon as you’re eligible for Centrelink benefits or the Commonwealth Seniors Health Card, make sure to apply for them right away. As we grow older, we’ll never know how our bodies will change in the following years. It’s best to be prepared at all times in case an emergency arises.
However, while you’re still working, maximise your company’s health maintenance organisation plans to go on annual checkups to ensure that you’re healthy and fit to work.
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Spending More Time with Family
There are instances that our work causes us to skip on family events and achievements. Although choosing work over family time can’t be avoided at every turn, it’s good to spend more time with the people you love and make up for the lost time.
If relationships haven’t been smooth-sailing in the family, maybe it’s time to settle things and regroup. It is also a good idea to set up your last will even before you retire. Let your family know about your retirement plans and assure them that their needs will still be taken care of even if you’re off work.
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Giving Back
Retirement is the perfect time to think about your success, achievements, and accomplishments in your lifetime. Although your time at work will be over, it’s an excellent opportunity to start new paths and open doors for other people. It’s time to do things that you’ve never done before that can help your community thrive.
Conclusion
Retiring shouldn’t be scary. It should be an event in a person’s life where they feel the most confident and relaxed. Although we were never taught to plan our retirement, it’s time to start today to influence future employees to live their best lives after their duties.
New Wave Financial Planning can help you achieve your best life after retirement. If you’re looking for a financial adviser on the Gold Coast, we’re here to assist and make your plans happen for the future. Get in touch with us today, and we’ll listen, understand, and give you advice.
