First Published on: 2nd May 2022 Updated on: 11th October 2023 Devising your financial…
There’s no such thing as “too early” when it comes to planning for retirement. As such, many people plan for their retirement as early as possible. While early retirement planning is a good thing, it’s not always smooth sailing because many people find it hard to save money. Not only that, but if you’re not willing to make reasonable adjustments to your lifestyle, your savings goals could remain out of reach. For this reason, you need to be smart and follow retirement planning tips.
This article lists down eight valuable tips to help you plan your retirement better. Read on below to get started.
How to Plan for Retirement
#1 – Think About How You Want to Retire
The first thing to do is think about how you want to retire. What’s important to you? Would you like to travel the world? Would you like to relax in a cottage by the beach? Would you like to keep working in some form because you’re too young to retire? The truth is, it is possible to do all of these things, but it may be more practical to split them up.
For example, you can travel the world after retiring by taking several months off each year. Or you can work part-time in retirement and enjoy a vacation home. It all depends on you and your goals.
#2 – Include Your Senior Years in Your Current Plan
Once you’ve decided how to retire, you need to include these plans in your current financial plan. Think about how much you’ll need to save over the years to achieve your goals.
To do this, you need to know how much you’ll spend in retirement, which means you need to plan your current budget accordingly.
#3 – Know Your Priorities
In retirement, you’ll have to prioritise your budget so you can make the most out of your existing resources. This means you have to determine how much you need to spend on food, housing, transportation, and other things in your everyday life.
Once you know how much you’ll spend on these necessities, you can start managing unnecessary costs to give yourself more spending money in retirement.
#4 – Consider Where You’ll Live
If you’re planning to live in the same home once you retire, you need to assess whether you will still have a mortgage and whether this debt obligation could be minimised by refinancing your loan before you retire. This will give you lower monthly payments and save money for the future.
However, if you want to move to a new place, look at opportunities to capitalise on your home’s equity so rather than putting your retirement savings on the line you could potentially bolster your retirement savings with a downsizer superannuation contribution.
#5 – Know the Investment Structure
While it’s true that you can put in minimum effort and just invest the same way you would in retirement, the truth is that you’ll want to take a different approach to retirement savings. Ideally, you should put more emphasis on growth and exposure to higher risk while you are still young, which means you’ll want to invest in stocks or other marketable securities.
On the other hand, you’ll want to put more emphasis on income, which means you should invest in bonds, money market funds, and other instruments to generate revenue.
#6 – Review Your Investments (If You Have Any)
When you’re in the accumulation stage, you may tend to ‘set and forget’ your investments if you’re happy with the returns. However, you should check your assets on a regular basis if you’re planning to retire.
You should review your investments to see if you’re still comfortable and feel that the assets are appropriate for you. If they’re not, then you may want to make changes.
#7 – Stick To Your Financial Plan
Once you review your investments, you should stick to your existing financial plan as much as possible. It’s essential to stay focused and keep on the track you have planned because that’s what you need to achieve your goals. It may not be easy because you may feel tempted to change things, but you need to remember that the better you plan, the better your retirement will be.
#8 – Get Help
If you need help, take advantage of the services of a professional financial planner. This will not only help you get the best out of your investments, but it will also give you access to the best retirement-planning advice available.
Supplement Your Knowledge with these Retirement Planning Tips
Retirement is an exciting yet scary prospect. It’s only natural to get started as soon as possible, but you need to plan wisely and carefully. As long as you come up with a definitive plan and make changes based on the circumstances, you can create a leisurely retirement for yourself. Aside from reading these retirement planning tips, it’s best to consult with an experienced financial planner.
At Newcastle Financial Planning Group, we provide valuable services for retirement planning in Newcastle. Our team of experienced financial consultants can help you develop a plan that will help you be financially secure throughout the rest of your life. Contact us today for a consultation!
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.