Whilst some embrace the thought of ‘hanging up their boots’ and enjoying their retirement, others will be in denial. Retirement is a stage some of us will be lucky to get to.
We’ve seen images of older couples holding hands walking by the shore, or enjoying a cruise. These images are cliché and suggest that younger workers don’t need to concern themselves with retirement planning. That is far from the truth. To be able to enjoy your retirement, younger workers should be preparing as early as financially possible.
Have Goals First
Retirement is not a stage that really just takes care of itself. Just because you won’t be bound by a job, doesn’t mean you’ll rest easy. It’s all in the planning.
Entering retirement is a whole new stage and it is as much about starting anew, than it is stopping the previous stage. Whilst we’re working and getting paid to do so, we have some dreams, aspirations and ideals that we’re simply too busy to pursue. It may be about finally putting in that vegetable garden, or spending more time with the grandchildren. Retirement presents the opportunity to do those things and more.
Money is important ……but
There’s no denying that money is important – income streams, superannuation, tax breaks are all part of it. But in order for those to make sense, you’ve got to know how much you need to be able to live out your goals. Until you assess how you want to spend your retirement, you won’t have a clear idea of your typical day and the funds necessary to support your lifestyle. In simple terms, you need to know how much living expenses you’ll need.
The key to having a happy and comfortable retirement is knowing what you want. You can then determine the strategy to pursue your goals. Asking these four questions can provide you some idea of what you’re really after when you enter retirement.
- What age do I plan to retire?
- What’s my lifestyle going to be like?
- Am I going to be debt free?
- Do I need additional money for other things like a brand new car or going on holiday?
Once you’ve figured that out, you can move on to setting up your strategies.
You should discuss with your current advisor on what your goals are and together, work on your retirement planning. PJT’s Super experts can assess your retirement goals and help you plan early. Book a consultation with your trusted advisor today to start the process.
GENERAL ADVICE WARNING: This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.
PJT Accountants & Business Advisors Pty Ltd CAR Number 1243046 ABN 75 116 182 873 is a Corporate Authorised Representative of Merit Wealth Pty Ltd ABN 89 125 557 002, Australian Financial Services Licence Number 409361
Wayne Patten ARN 277883 is an Authorised Representative and Jodie Thompson ARN 277884, is a Limited Authorised Representative of Merit Wealth Pty Ltd ABN 89 125 557 002, Australian Financial Services Licence Number 409361