Retirement is an important moment in our lives. While we can choose to deny its arrival by ignoring to plan for it, a well-considered approach to retirement could have a significant impact on your standard of living in later years. After all, retirement is a time when we should be enjoying the benefits of our working life.
1. Set goals
Once retired, it’s time to start achieving things you put off because you didn’t have time or headspace to pursue them. A set of goals for your retirement will help you focus on what is important to you. Write them down, no matter how big or small, and get excited to start kicking goals.
2. Find an interest
Whether you stop work immediately or ease into retirement, eventually you’ll be left with a gap where work once was. Find an interest or hobby and focus on it. Committing to a sport like golf or tennis, joining a community group or even studying is a great way to stay busy and fulfilled.
3. Money needs
Once you have an idea of the retirement lifestyle you want, work out how you will finance it. Benchmark your current financial position and factor in the goals you want to achieve along with day-to-day living expenses and financial commitments. The Retirement Calculator from Money Smart will help you assess your current situation and offer recommendations on how to make up any shortfall.
4. Supercharge your super
Superannuation is an important part of any retirement plan. No matter where you are in your career or how much you earn, there are plenty of ways to boost your super. This includes government co-contributions, pre-tax salary sacrifice and post tax super top-ups.
5. Get your affairs in order
Avoid future stress on your loved ones and get a robust and up-to-date plan for what will happen once you’ve passed. A will, estate plan and nominating a power of attorney are all important pieces of legal housekeeping. Depending on your situation life insurance is a good way to help you protect what matters most and provide financial security.
6. Get resourceful
Start preparing for your retirement by reading articles, books and magazines; there’s a lot of information and advice available. The Department of Human Services provides up-to-date information on topics such as healthcare, pensions, concessions and general advice. They also offer free Financial Information Service (FIS) seminars as well as personal appointments for more complex circumstances.
Have you recently retired? What advice do you have for those drawing closer to this exciting time in their lives?