Getting financial advice before you retire could mean the difference between a comfortable retirement and a life with limitations and worry. You may think you have it all sorted, but how much do you really know about planning ahead, maximising your retirement savings and maintaining your retirement income?
Australians are living longer than ever so it’s important to have enough saved up to last you the distance - don’t leave it too late to start planning. It’s time to start improving your financial outlook and making better use of what you have. There are various investment and retirement strategies to help you get ahead and give you peace of mind, however only a well-constructed plan can bring you the right results.
One of the most important things a financial adviser can do is help you understand how much income you’ll need in retirement, and subsequently, the total amount to provide for that income.
We often hear from our clients after they have retired that they don’t know how they found the time to go to work! You will be busy doing all the things you saved for in the early years, such as holidays, but we are also living longer, and those extra years need to be funded as well. A carefully thought out plan targeting your lifestyle dreams, along with the everyday expenses, need not be difficult, but does need to be put in place.
Maximising retirement savings
There are a number of ways for investors in their 50s and 60s to build their retirement wealth; but super is often the most tax effective. By using a transition to retirement strategy, where you salary sacrifice some of your before-tax income into your super while using income from your super pension to live on, you could reduce the tax you pay and direct more money back to your super fund.
The strategy allows for an efficient use of your pre tax income to help ensure that you have more funds invested, due to the lower tax rate, which in the end all helps to build that retirement nest egg so you have every chance of living the retirement lifestyle you’ve been dreaming of.
Advice after retirement
With 20 or more years in retirement, getting ready to leave the workforce is only the first step; receiving ongoing advice throughout retirement is the second. Life can throw many things our way, but it’s how prepared we are that determines our likelihood of coping with such things. Be it an unexpected holiday, the kids’ weddings, or an inheritance, life is constantly changing, and having a plan in place can help you to adapt.
There are also constant changes to super rules and the economic environment, which can be very confusing without the right advice. Having a plan in place, and regularly reviewing it can help you to proactively manage these changes while giving you a sense of comfort.
It’s easier than you think to make your retirement dreams a reality, you just have to be well prepared, and that preparation should start today!
This document has been prepared by Rowland Financial Advisory Pty Ltd ABN 66 163 488 480 who is an Authorised Representative of Financial Wisdom Limited ABN 70 006 646 108, AFSL 231138. Information in this document is based on regulatory requirements and laws, as at 1 July 2014, which may be subject to change. This document contains general advice. It does not take account of your individual objectives, financial situation or needs. You should consider talking to a financial adviser before making a financial decision. Taxation considerations are general and based on present taxation laws, rulings and their interpretation and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information.