15 June 2016

How to plan for a comfortable retirement

Planning Effectively For Your Retirement Relies On You Having A Very Clear Understanding Of Who You Are, What You Value And How You Wish To Live When You Retire.

We always recommend beginning retirement planning (or any financial planning) by detailing your values and how these affect the way you spend your money. For instance, if travelling is a priority and an epic retirement cruise is on the bucket list, this will affect how you plan for retirement versus someone who is a homebody and prefers to invest in settling in a cushy abode upon retirement. Committing your goals to paper and discussing them with a financial planner can illuminate on how these can be realistically achieved, which can be documented into an actionable financial plan.

Make Smart Financial Decisions Early

Once you’re in the throes of retirement planning – there’s a number of key factors to keep top of mind.

  1.  Your biggest retirement asset will likely be your superannuation. Because superannuation has been designed to encourage you to save as much as possible it has highly favourable tax rates. In fact, come 60 years of age you get a legal pass for tax free earnings and withdrawals on all investments. In a nutshell, your superannuation deserves your love and attention.
  2.  Don’t splash your cash without a plan. If you have big financial goals that involve considerable investments, such as a home loan, you need to be very clear on what your discretionary spending allowance is and how much you must save to meet your recurring payments. Work out how much you have to play with and never spend more than this.
  3.  The financial measures and decisions you make now can make a massive difference to the sum you end up with at retirement. For instance, structuring your finances to minimise the tax and interest you pay on debts could save you in the hundreds of thousands of dollars.

Get Expert Advice From Someone Your Trust

Advice can take many shapes and ultimately the level of financial advice and support you need will depend on your own financial literacy and complexity of your financial situation. Obviously advice grounded in expertise is critical when dealing with a complex subject like finances and tax, but there are also the emotional and practical factors to consider. A good financial adviser is someone you can trust with your personal financial concerns, circumstances and goals. You should feel comfortable to seek their objective advice, with the expectation that they truly understand your unique lifestyle goals and preferences.

Beginning your retirement planning now? Give us a call on 1300 893 000 or send us an email at to chat further.