Planning your dream retirement can be an exciting time. The chance to travel overseas or around Australia without having to rush back to work, time to pursue new hobbies, learn a language or spend time with the grandkids. The possibilities are endless, but it may take more preparation than you think. It is never too early to start planning for retirement.
1. Develop a plan
The first step in creating a successful retirement is to develop a retirement plan.
Below is a budget from The Association of Superannuation Funds of Australia for various households and living standards for those aged around 65.
It is very unlikely that you are going to be satisfied relaxing all day for the next 30 or so years.
You should plan extra savings to ensure you have enough money to be able to travel to all the remaining destinations on your bucket list and spoil your family of course!
Create a plan of new hobbies you would like to explore, trips you would like to take and ensure you have the budget for it.
2. It’s never too early or late
Whether you have just started the workforce, or you are a few years away from retirement it is never to early to make a plan.
3. Plan for a long life
Today’s 65-year old’s can expect to live to an average of 84.6 years for men and 87.3 for women, or roughly 20 and 22 years respectively in retirement. That’s a long time, and it’s only an average. Half will live longer than that.
The challenge is to ensure your cash lasts the distance, however long that may be.
A good way to begin thinking about your retirement needs and working out a budget is to visit the ASFA Retirement Standard, where you will find detailed budgets for different households and living standards.
4. Try to retire debt free
If you are still paying off your mortgage, credit cards or other major loans, reconsider the timing of your retirement. When you retire with fewer expenses, you may find that retirement is more affordable and feasible.
5. Seek professional assistance
With Australian’s living longer, healthier lives many of us can expect to enjoy as may years in retirement as we did in the workforce, and that requires careful financial planning.
Engaging a professional to ensure your funds will last the distance is an imperative step in ensuring your retirement is successful and stress free.
Click here to make an appointment to start planning your dream retirement today.
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