By planning and saving for retirement, most people can look forward to a rewarding life…
Author: Kristy Coulin
Early retirement is a common dream of many Australians. No one wants to work hard until they are old and grey.
Retirement is a time where you get to start doing the things you love. So it’s not surprising that people are keen to achieve early retirement.
Unfortunately, for many of us, the dream to retire early is exactly that: a dream.
So many Australians struggle to even retire comfortably with financial security let alone retire early and comfortably.
If you want to have a comfortable life in the future, you need to work smart and save up.
While there is no fixed retirement age in Australia, you do need to be mindful of the Preservation Age (i.e. when you can access your superannuation) as well as the age you can receive the Age Pension.
But realistically, anyone can choose to stop work whenever they want. It’s just a matter of planning how you can do it without running out of money for your future.
Early Retirement in Australia: Can I Join the Movement?
Before one can retire comfortably, they should have paid off all their debts, have ample retirement savings, and have a thorough understanding of their current financial situation. More than anything, one should also consider costs for their healthcare (especially unexpected medical costs). You should also have your age pensions and super fund structured in a way that suits your plans.
While all these goals may seem intimidating, early retirement is still possible. You just need to focus on your goals and find ways to achieve them.
In Australia, there is a booming movement called the FIRE Movement or the Financial Independence, Retire Early movement, which comprises of young Australians wanting to retire ASAP.
Whilst the FIRE Movement might be a bit extreme for some of us (myself included), you can formulate a plan and start preparing for early retirement in your own way and on your terms. The earlier you think about it, the faster you can make a move and the more realistic your plan can be. Some people have saved enough money to retire, while others are still looking for the best investment strategy and options to leverage their funds.
Is Retiring Early Possible?
Short answer? Yes.
Long answer? Yes, but you need to plan (and then plan some more).
To retire early, you need to be smart with your decisions and start your financial and retirement plan early. It’s also important to keep in mind that we are starting to live longer as well so our retirement years are only going to increase. While this is great, you also need to make sure you can fund your entire retirement.
Early retirement depends on many factors and considerations. Some of the questions you need to answer are the following:
- What is your current situation?
- How much do you need to save for your retirement?
- What kind of retirement do you picture? Do you want to do some leisure and recreational activities?
- Where do you want to live?
- Would you be living on your own or supporting other people as well?
- What are your sources of income? Do you have a robust income portfolio?
- How determined are you to bring your goals to life?
- Do you have enough superannuation funds?
- Can you access your super fund already?
While all these questions can be overwhelming and you may not have the answers to them right away, you need to answer them before your early retirement dream becomes possible. That is where a financial planner can help. Getting expert support and advice on this matter early can be the key you need to retire early and with comfort. While making financial plans and decisions now may seem complex and challenging, a retirement financial adviser can help you.
At NFPG, we can help you plan out your timeline to retirement and build your retirement nest egg, so you can live comfortably in your golden years. We know what it takes to achieve early retirement and we can help you get there. Let us optimise your investment earnings as we craft a well-planned retirement strategy that addresses your needs first.
To know more about tips for managing your finances during your retirement years, check out these posts:
- How to Prepare for Life’s Curveballs Through Retirement Planning
- Retirement Planning in Australia: How much do I need?
- How to Effectively Boost Your Retirement Income
If you are looking for financial advisers in Newcastle, our team at Newcastle Financial Planning Group is experienced in working with clients to ensure they are retirement-ready and can focus on enjoying the wealth they have accumulated.
Contact us today to get your path to early retirement and financial freedom started.
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.