More and more people are now getting into retirement planning, even those who aren’t near retirement age yet. After all, it’s never too early to plan for your future and secure your finances. Thinking well ahead will help you ensure a stress-free life after employment, and you’ll be free to enjoy everything you want to do without unnecessary worries about outliving your savings.
Retirement planning brings many benefits, such as reducing your taxes, saving costs, and securing your assets for the future generation. It also gives you peace of mind as you steadily build your wealth towards a more comfortable future. However, many people wonder: when is the right time to start retirement planning?
When Should You Start Retirement Planning?
The odds are that you are now still working and earning, so the best answer to the question above is “now.” There’s no time like the present when it comes to retirement planning. Whether you’re just starting with your career, in the middle of it, or nearing post-employment age, it’s best to start sooner rather than put it off for later when you don’t have a reliable source of income anymore.
Retirement planning can look different at various points in your career. Strategies can change depending on your current circumstances, but the end goals should be the same.
It’s best to talk with your financial adviser to determine what steps to take as you start pre-retirement planning. They will guide you through the process in each stage of your career and ensure that you live a comfortable life after employment. With this, let’s discuss some viable strategies you can use.
1 – At the Start of Your Working Life
It may seem rather odd to begin retirement planning right at the start of your career, but it’s still an excellent starting point. Looking ahead will help you take the necessary steps to stay out of financial troubles that may harm your savings.
Now that you’re just working your way up, it’s best to set aside some money for emergencies. Make sure to eliminate credit card debt and student loans as well, as they can have a significant impact on your future finances.
You may also sacrifice a bit of your salary to contribute to your superannuation (super) funds because small contributions over time can make a significant impact on your savings.
2 – In the Middle of Your Career
Being more established in your career puts you in a better position because you likely have eliminated some of your debt load, so you can better work with your financial adviser and plan how much you’ll need to set aside for retirement.
It’s best to continue making contributions to your super. Make sure to know how it’s invested and what fees you’re paying to ensure that you reduce the fees while getting more returns. Ask your financial adviser if it’s wise to increase your contributions as well.
3 – A Few Years Before Retirement
At this point, you can still start planning for your retirement goals and what you want to do after employment. It’s best to not lose focus on debt reduction and growing your investments, and continue talking to your financial adviser about how you can stay on target and how to prepare for what comes next.
Contact a Financial Adviser for Your Retirement Planning Today
There’s never a bad time in your career to plan for your retirement in the future. However, the strategies you’ll need to take will vary depending on where you are now. It’s best to talk with a professional to determine how you can ensure a comfortable and fulfilling life after employment.
If you’re looking for a financial adviser in the Gold Coast, New Wave Financial Planning has you covered. We provide personalised solutions for all your financial needs, such as investments, retirement planning, budgeting, superannuation advice, and more. Secure your future—contact us today!
