Retirement should be a time of freedom and excitement. It's a time to do everything…
There are two kinds of adults – those who look forward to their retirement and those who dread it. It’s not too difficult to see why these two groups of adults would feel the way they do.
For those who look forward to retirement, it’s the time when they can finally relax and earn the right to simply enjoy life. Those who dread it are likely those who, unfortunately, weren’t able to financially prepare for this stage in their life.
But is retirement planning really that simple? Not exactly.
For one, everyone starts their financial planning for retirement at different points in their lives, and not everybody retires at the same age either. This means the journey to retirement – and the best way to plan – will be different for everyone.
Some are lucky enough to retire when they want, but others are forced to retire either earlier or later than usual.
In this article, we share what you need to know about retirement planning in 2021 to help you best prepare for your future:
Are You Ready for Your Retirement?
There are certain factors that can affect your retirement readiness! Many people worry about finances, lifestyle changes, and family responsibilities. There are other things that could be weighing on them, too.
For those whose jobs are not just their source of income but their passion as well, with colleagues that they consider family, saying goodbye can be challenging. You need to prepare not only for the day when you stop earning money but also for the time where you won’t be doing the same routine that you’ve had for many years.
How Do You Plan for Your Retirement?
The reason you are here is that you are looking for retirement financial planning information.
Here is the thing that you should know first.
You should always start by assessing your circumstances and determining your needs. Evaluate your income, spending, assets, your savings, investments, and insurance. Only when you have a clear picture will you be able to figure out how to best approach your retirement savings.
Once you have that, you’ll need to decide whether you’re going to live a luxurious, holiday-style lifestyle or if you are happy with a modest, basic retirement life.
How much superannuation you need depends on the standard of living you wish to keep when you reach retirement, so factors like health insurance, travel, and other recreational activities should be considered.
You might want to think of ways to boost your super while at the same time enjoying your tax benefits.
You should also think about whether you’re going to do this on your own or seek the help of a financial planner.
You might want to factor in the government’s contribution as well.
Recent Changes to the Age Pension
Since 20 March 2021, about 2.6 million senior Australians have been regularly receiving an increase in their Age Pension payments.
This increase means pensioners and carers get an increase of $8.40 a fortnight, which may not seem like a lot but small increases add up to big changes over time.
If you are eligible for the Age Pension, you might receive a fortnightly payment of up to:
- $952.70 if you are a single
- $952.70 as a combined couple payment
Retirement Planning in Port Macquarie
The basics of preparation and planning for retirement hardly changes. The premise is still the same. You need to save as early as possible while you’re still earning a working income so you’ll have enough for when you stop working.
If you’re still not doing any financial planning for retirement, it’s high time that you do so. Time flies by so fast, and you don’t want to find yourself at that point where all you can do is regret not taking your retirement plan seriously.
To know more about tips in managing your finances during your retirement years, check out these posts:
- What Do You Need to Think About Before Retiring?
- 3 Myths About Retirement in Australia and Why You Need to Know the Truth
- The 4 Most Commonly Asked Retirement Planning Questions Answered
If you are looking for sound retirement advice and a tailored plan just for you, consult with Coastal Advice Port Macquarie. We can help you reach your financial goals with solutions that are specific to your needs and preferences through tailored financial advice. Contact us today to find out more!
DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.