There comes the point in your life where you can finally retire and spend the rest of your remaining years doing what you want without letting your career continue to take over. However, you need to make sure that you have enough savings in your bank account to keep living a good life that’s free from worries and troubles.
It’s essential to ready yourself for the future—which is why you must learn how to save for your retirement properly. Being financially secure allows you to take care of yourself, whether alone or with a partner, because no matter what happens, you know you can look forward to living in comfort.
While there is no definite age where people are recommended to retire, it’s important to understand your needs, including your health situation, financial obligations, and other factors. Keep reading below to learn advice on managing your retirement down the line.
Determining the Right Savings for Retirement
It’s fundamental to think about your retirement investment plans to prepare yourself financially once you aren’t capable of working for a living anymore. Whether you live on your own or have a spouse, once you reach the age of 60 and above, you must have the right amount of savings under your name.
Ideally, your yearly income as an individual must be at $43,317, while it’s $60,977 for couples. The figures are necessary examples to support your lifestyle and keep you comfortable—if you own the home you’re living in by then, that is. Your health should also be in good condition to avoid spending most of your money on medication and treatment.
If you want to avoid relying on a pension as you get older, you will have to maintain a humble lifestyle. As much as possible, your annual budget as an individual should be at $27,648, and if you have a partner, it should be at around $39,775.
The numbers above only serve as a guide for developing a practical retirement planning strategy. It will still depend on your situation, so it’s best to seek a financial advisor for help. Besides relying on your salary, you may also have other sources of income, such as superannuation funds, government provisions, inheritance, investments, and more.
Managing Your Superannuation Funds
For people who are worried about not saving enough in time for their retirement, you can rely on a superannuation plan to offer ease to your financial planning. If you still aren’t familiar with how it works, you should acquire superannuation advice from a financial expert.
Other than that, it’s essential to take note that you have the right to gain access to your super funds once you reach 55-60 years old. When you want to withdraw your super, you can look forward to facing no taxes, among other benefits.
You can choose to continue working full-time, part-time, or when necessary and still acquire financial flexibility by attaining a part of your super funds through a transition to retirement pension (TTR). Meanwhile, if you’re looking to retire for good, you may withdraw your super as a lump sum or transfer it to an account-based pension or annuity to help balance your savings.
However, having a superannuation fund doesn’t mean you will acquire a limitless income, which you can bring with you forever. Also, you can still face taxes, depending on your situation. To give you a better idea of what’s in store for you, you can reach out to a financial planner for sound advice.
Conclusion
Planning for your retirement often requires you to take a step back and assess your financial state to come up with a solid plan. You will have to determine the savings you need to prepare you for a smooth retirement and learn to manage your super funds accordingly to guarantee you won’t face problems after retiring. Having a budgeting advisor to depend on is also necessary to help steer you on the right track towards a livable future.
Are you looking for a financial advisor that can help you come up with the best retirement plans for you? New Wave Advice is a financial advisory firm in the Gold Coast that provides financial solutions and advice for clients all over Australia. Get in touch with us today to schedule a consultation and plan your retirement with us!
