Wealth Connexions unpacks our step-by-step strategy to help you get the best of your retirement plan.
While financial planning may feel like it’s taking the fun out of retirement, it may be the most important thing you do to protect yourself and your loved ones in the future. Retirement may feel far away for some, but it’s best to have a plan that you feel comfortable and secure with before you reach that stage of your life. Wealth Connexions have outlined the best retirement planning strategies in Brisbane.
Step 1: Understanding Your Retirement
Every person is unique, which means each Australian’s idea of retirement is unique. Some Australians may have been forced into retirement because of their health or lack of employment. While others may have a clear and concise goal of what their retirement should be. By breaking down your expectations of retirement, you’ll also be able to better understand the costs involved in your preferred lifestyle.
So, now you understand the costs involved in your ideal retirement. How do we control those costs? Depending on the age you begin to plan for retirement and the period in which you want to retire, may impact the retirement planning strategies we have outlined. One of our recommendations are, if you’re paying a lengthy amount of rent for a home, you may wish to purchase your own home. This will ease a lot of financial pressure and stress once you retire, as you won’t have to worry about paying your monthly rent once you’ve paid off your mortgage. This opportunity may not be for everyone, depending on their unique situation.
Step 2: Preparing Your Superannuation
Superannuation, or super, plays a massive part in each Australian’s retirement plan. Super is an easy way to secure your finances for the retirement of your dreams, though it is frequently overlooked. A strategy that can be used by anyone, is contributing additional amounts to your superannuation fund. This allows you to safely store those finances away, especially if you have a goal you’d like to reach before you can retire. By contributing to your super, not only are you securing your future finances, but you’re also lowering your tax obligations in the present. This retirement planning strategy really is a win-win.
Step 3: What Will My Retirement Look Like?
There are many factors to retirement, including government benefits, such as the pension income which is available to all Australian citizens aged over 65 years. It’s important that you check this while conducting your retirement plan, as the government may change the minimum age depending on your generation.
Another important aspect of your retirement planning should be to create a retirement safety net. This safety net is designed to support you and your loved ones if additional expenses make themselves present or if an unforeseen circumstance impacts you, such as a natural disaster or forced retirement. By preparing for the unforeseen with a financial safety net, you can enter your retirement knowing that you’re covered.
Additionally, another great option to better protect yourself is investing. While investing may not be as secure as a retirement plan, it could become incredibly useful if you invest correctly. Like retirement, there are many investment strategies that you can take, depending on what best suits your individual situation. Each investment opportunity offers different benefits, so it’s important that you do your research so that you can find the best outcome for you.
Step 4: Additional Factors to Consider
A factor that you will have to consider and plan for, is any existing debt you may currently have and what that could mean for you in the future. The best option to counter this is to pay off any debt you may have as far away from your retirement as possible, to ensure you’re saving for retirement and relieving any stress that the debt may cause for you in the future.
Insurance is also another factor that you may want to consider for your retirement plan. As you get older, the uptake of your body becomes more difficult. Some Australian’s feel better about having insurance, whether it’s health, personal or home when planning for retirement. This allows them to have another safety net, of sorts. However, this strategy can depend on each person’s unique situation and may not be possible for all.
We hope these strategies have outlined some great points for you to consider as you begin to plan for your retirement in 2022. At Wealth Connexions, our job is to support our clients in the best possible way, whether it’s for retirement or presently. Our experts can outline even further the most suitable retirement planning strategies in Brisbane for you or your loved ones. If you’d like to receive our expert advice or if you have any queries, please contact us on 07 3891 5666 or email us at admin@wealthconnexion.com.au.
