Retirement Planning Questions Answered - Coastal Advice Port Macquarie
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Retirement

The 4 Most Commonly Asked Retirement Planning Questions Answered

Author: Kristy Coulin

How to Retire Successfully

You have spent almost your entire life working hard to secure your future. For this reason, you deserve to enjoy your desired lifestyle that allows you to relax and do the things you truly love. But to live comfortably in your golden years, you need sufficient funds so you won’t ever have to worry about your finances.

It’s understandable to feel worried about your financial security once you leave the workforce. After all, it will likely be your first time without a regular income to support your daily living costs. To ensure you’re not only financially ready for retirement, but also emotionally ready, it’s best to plan as early as possible.

If you have no idea where to start, here are some of the most commonly asked questions we get asked about retirement planning answered by our expert financial planners in Port Macquarie:

What Is the Ideal Age to Retire?

Workers in their 50s and early 60s likely feel burned out and ready to finish up at their job well before the age of 65. This is especially common if you have had a physically demanding or highly stressful career.

While 65 is the average retirement age in Australia, there really is no one ideal retirement age.

In fact, you can retire whenever you want to, but only if your situation allows it. To determine the right retirement age for you, consider your financial situation, employment opportunities, health, and lifestyle. Filling in these gaps will help you decide on the best time to retire.

How Much Money Do I Need to Retire Comfortably?

Funding your desired lifestyle is no easy task. Thankfully, financially preparing for the future is possible when you start planning and saving for retirement early.

Currently, the Association of Superannuation Funds of Australia (ASFA) suggests an individual would need approximately $44,000 per year for a comfortable future retirement. But if you want a modest lifestyle in retirement, the ASFA estimates approximately $28,000 per year for an individual1.

These numbers can be adjusted depending on the lifestyle you want during your golden years. While it is essential to remember that these amounts are a guide only, they can help you as you plan your future and come up with retirement financial planning strategies.

As you plan for your budget and income in retirement, don’t forget to consider any potential income sources, such as investments, government entitlements, and inheritance expectations.

Will I Be Eligible for Government Entitlements?

You may be eligible for some government payments if you retire in Australia. Besides your savings, you may get retirement income from the age pension, Carer’s Allowance and/or the Disability Support Pension.

However, there are eligibility criteria for these government contributions. Your eligibility is based on:

  • Your age;
  • Your income and assets;
  • Whether you are single or a member of a couple; and
  • Whether you are a homeowner or non-homeowner.

Consider working with a financial planner to learn more about benefits, services, and pensions you may be eligible for in retirement.

What Else Do I Need to Consider for My Retirement?

There are so many elements to an effective retirement plan. While there are some parts that everyone will need to consider – like budgeting and superannuation – other parts will be unique to your situation.

Life insurance may be an important part of your retirement income. If you already have life insurance cover, check with a financial adviser whether it will still cover your needs as you transition into retirement. Since your needs vary as you age, it’s vital to assess whether you still have the right type of insurance and enough coverage for retirement.

It’s also important to think about your estate planning needs for the future. This will give you peace of mind knowing the assets you have worked so hard for are distributed accordingly after you’re gone.

Another factor to consider for retirement is your investments. You might want to consider a more conservative investment approach since you have less time to ride out the market.

No matter what your financial situation is, a Retirement Planning Specialist at Coastal Advice Port Macquarie can help.

Life is far too short to worry about money!

Not having enough money in retirement could be detrimental to the lifestyle you want in your golden years. With the added complexity of inflation, you may find it hard to know whether you will actually be on track for a comfortable retirement.

You deserve to sit back and relax in your retirement, and we want to help you do just that.

If you want to enjoy your retirement with financial security and peace of mind, start your retirement plan now. If you need retirement advice, feel free to reach out to one of our financial advisers.

At Coastal Advice Port Macquarie, we offer retirement planning in Port Macquarie and nearby areas. Our financial planners have the knowledge, experience, and expertise to create the perfect plan for your successful retirement.

Contact us today to schedule a complimentary appointment!

REFERENCES

1 https://moneysmart.gov.au/grow-your-super/how-much-super-you-need

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.
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