Looking forward to an enjoyable retirement? Check out our top 10 tips to make sure you’re on track.
Tip 1: Take stock
What kind of lifestyle do you want to live in retirement? How much will it cost you for the lifestyle you really want and deserve in your golden years? Now, what does your super balance look like? Are you on track to achieve your ultimate lifestyle? Do the figures meet your expectations? If not, what action do you need to take now?
Tip 2: Plan for the rest of your life
Most people who are currently retired are living longer than they expect, we are all living longer with the help of the advancing medical industry. While your health and family longevity will influence your life span, if you’ve survived life’s early risks, such as accidents or illnesses, you could easily live into your nineties or older. We need to plan for the long term because you don’t want the stress of worrying about money in your golden years when you are supposed to be enjoying yourself. Also, don’t forget that you may need extra assistance or care as you get older.
Tip 3: Review your investments
For your savings to last the rest of your life, you need to invest for the long term. This means getting the investment mix right with a balance of income and capital growth. Diversifying your investments across cash, fixed interest, shares and property can help your portfolio grow to beat inflation and help to reduce the risk and achieve smoother, more consistent returns over time.
Tip 4: Stick to your plan
Investments can quickly change in value. While it can be tempting to sell everything when the market falls and put all your money in cash, this could be the worst decision you make for your retirement and will impact the lifestyle you have looking forward. It’s really important to remain focused on the long term and your goals and reasons why you are investing as markets have historically recovered when given enough time.
Tip 5: Get the structure right
By changing the way you structure your investments and receive income, you may be able to reduce the amount of tax you pay while also increasing your Centrelink or DVA benefits. Even if you aren’t eligible for an age pension, you may be entitled to discounts and other benefits, which can save money over time.
Tip 6: Get your affairs in order
Estate planning allows you to pass on the right assets to the right people at the right time. The first step is putting a Will in place, but you should also speak with your solicitor about an Enduring Power of Attorney and medical care directive. These can help your family fulfil your wishes if you’re not able to make decisions yourself. And remember to review your estate plan at least every three years.
Tip 7: Stay fit and healthy
Another tip by staying mentally and physically active, you’re more likely to enjoy a long and healthy life. Take up a hobby, learn a new skill, work part-time or volunteer in your community
Tip 8: Re-think the move
Some retirees have moved away from friends and family to their dream location only to find it wasn’t what they expected and in time have regretted the move. If the coast or bush is beckoning you, try living there on a temporary basis first. It will give you time to work out if it’s the right move you.
Tip 9: Think about the “what ifs”
The last thing you need in retirement is for your finances to be affected if something unexpected happens to you. Ensure you have a sufficient emergency fund for life’s unexpected events. Review your insurance needs to make sure you are adequately protected. Don’t forget health and travel insurance cover, especially if you plan to join the grey nomads.
Tip 10: Get help
Making financial decisions can be quite complex. Getting the right advice early enough can make a huge difference to the lifestyle you are able to live in retirement. Give WealthPath a call on 07 5444 0675 today to book your complimentary discovery appointment.