Wealth Connexion brings you the ultimate guide for starting your retirement planning in 2023.
Retirement is possibly the biggest milestone in your life, and it’s a milestone that requires a lot of thought and planning. If you’re planning to work well past retirement age or retire as soon as possible, it’s never too early to start planning for retirement. This post will go through some questions you should ask yourself before you start retirement planning, and some practical strategies you can implement.
When should I retire?
The average retirement age is 55.4 years, but some people decide to work well past retirement age due to personal preference or external factors. Ultimately, when you decide to retire is entirely up to you.
There is no compulsory age for retirement in Australia, but there are benchmark ages for when you’re able to access your super, or when you become eligible for Age Pension.
What does my ideal retirement look like?
Some questions you should ask yourself about your ideal retirement are:
- How do you want to live in retirement?
- Do you want to travel?
- Do you want to keep up an active social life? Or do you want a quiet life?
- Where do you want to live?
- What type of home do you want?
- Do you want/need private health insurance?
- Do you want to help the kids or grandkids financially?
If you’re struggling to decide what type of lifestyle you want in retirement, talk about your retirement priorities with someone you trust, like your partner, friend, colleague, or licenced financial adviser.
This should give you an idea of what type of retirement planning strategies you need to implement.
How much will my ideal retirement cost?
As a rule of thumb, you will need between two-thirds (66%) and 80% of your pre-retirement income to continue living as you already are. This is because it’s cheaper to live in retirement because you assume you will no longer be paying back your debts.
Although how much you need in retirement is different for everyone, it’s best to base your savings goals on the Association of Superannuation Funds of Australia (ASFA) estimated retirement budgets. This will give you a general ballpark of how much you will need yearly to live a modest or comfortable lifestyle. This budget is updated quarterly and has budgeted for singles and couples.
If you plan on living a comfortable lifestyle, a comfortable lifestyle for those aged 65-84 will cost:
- Couple: $68,014 per annum
- Single: $48,266 per annum
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How do I save for retirement?
A good place to start saving for retirement is by looking at where you currently are financial. This should be the total of your cash savings, super, and other assets minus the total of your debts.
From here, you’ll have a good understanding of how much more you need to reach your retirement goal.
There are many retirement planning strategies you can implement to create wealth. It’s best to talk to a trusted financial advisor to guide you through your retirement planning strategies.
When should I start planning?
It’s best to start planning for retirement as early as you can. Life is unpredictable and you can be forced into retirement earlier than expected due to accidents, illness, or other external factors. So, it’s best to be prepared for the unknown as early as possible.
At Wealth Connexion, we provide many services that aim to help you with retirement planning strategies in Brisbane. Our trusted financial advisors are based in Brisbane, and we’re ready to work with you to help you succeed in retirement. Get in touch to see if we are the right fit for you.
