Retirement Planning Strategies
Retirement Planning is an important process that will have a more satisfactory outcome if undertaken early in life. Wherever you are on the lifestage spectrum it is never too early to prepare for the day sometime in the future, when you will retire. As with all planning, the earlier you implement a strategy (plan), the easier the attainment of your goals.
Where do you fit in the retirement planning cycle?
Considering retirement? You will need to prepare for retirement: in all aspects – physically, mentally and financially; and as with all phases of our lives, planning strategically will bring the most satisfying outcome.
From a financial viewpoint there are a few options to consider: can you retire financially independent; will you need to supplement your superannuation accumulation with some Centrelink benefit; or are you going to be entirely dependent on the Centrelink system?
Are you considering an early transition to retirement? If you are in a position to reduce the hours you work – and able to sacrifice some of the continuing earnings toward further superannuation accumulation – you may be able to enhance the rate of accumulation ready for full retirement.
Will Centrelink benefits fund you in retirement? Regardless as to what extent this may be in your plan, planning in advance will ensure that the optimum amount of benefit will be available to you. Your entitlements to Centrelink support by way of Age Pension (Full or Part), Commonwealth Seniors Health Card or other services in the period of your retirement may well form part of the strategy for you; and this too can be optimised with careful planning.
Which income stream can you rely on to fund your retirement lifestyle? Retirement income streams – including annuities – may flow from superannuation benefits (usually in the form of pension income: and generally speaking, Allocated Pensions); and they may be drawn from assets accumulated outside of superannuation. Many self-funded retirees will have a mixture of wealth accumulated in both areas.
Whilst some will use the popular self-managed superannuation fund structure to achieve their retirement funding goal, retirement pensions can also be sourced on public offer platforms and through specialist products purchased for the purpose.
In contemplating this topic, you have made a good start: there is some helpful information in the linked ASIC-related MoneySmart article – which includes seeking advice.
Whichever road you take to retirement, a strategic plan diligently executed, will assure the best outcome…
Whatever your personal circumstances there will be a retirement planning strategy suitable to you. It is important that the most appropriate investment strategy, matching asset allocation; investment products (assets); investor risk profile; and time periods available for accumulation – be employed for your particular circumstances. Contact the Continuum Financial Planners Pty Ltd advice team to start your journey toward the most financially independent retirement attainable in your circumstances.
There is no substitute for a well-structured long-term wealth accumulation (and wealth management) program to provide a comfortable and adequate income in retirement. Continuum Financial Planners Pty Ltd can work with you to give you peace of mind about the adequacy of your disposable income in retirement – and in a tax effective way.
To obtain financial advice from one of our experienced financial planners in relation to these matters; or to find out more, contact us on 07-34213456 or email our helpful staff via our Contact Us page.