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Retirement Savings Plan - two couples

What You Should Know About Developing a Retirement Savings Plan

Are you in your 20s, 30s, or even 40s? Then, every once in a while, the thought of your retirement must have come to mind – but perhaps not often enough, or you might not think of it seriously enough to take action. Well, you are not alone. For many adults, work-life is already challenging enough that it can be daunting to think about having to save for retirement. 

However, making sure that you are financially secure by reaching retirement age is extremely important. You don’t want to get to that age and regret that you didn’t prepare for it. The good news is, it doesn’t have to be as complicated as you probably thought it would be. You can seek the help of a financial planner in Newcastle, for instance. There are also some simple strategies that you can do to get started. 

Strategies on Building Your Retirement Savings Plan

Determine the Life You Want in Retirement

There’s no specific amount for how much you’re going to need when you retire. To determine how much you need to save, you have to figure out the kind of lifestyle you want to enjoy in your senior years. Now is also the perfect time to think about your retirement fund and income; make sure you can secure enough funds to retire comfortably. 

Take a Closer Look at Your Super Contributions

Have you been paying attention to your superannuation contributions? Well, you might be able to increase your before-tax super contributions. Consider speaking with your employer about contributing through salary sacrifice. This means that part of your before-tax income will go directly to your super. 

You might also want to contribute out of your own pocket. If you are not that familiar with superannuation, you can consult with one of our experts at Newcastle Financial Planning Group; they’re more than happy to assist with your superannuation contribution strategies.

Focus on Your Investment Strategy

It might be time to check your super fund and your nominated investment, too. You might be tempted to shift into low-risk and more conservative options. However, it could be good for you to have part of your savings, including your super, invested in growth assets that can deliver long-term capital gains. This is something that you need to discuss with your financial planner, who can help you come up with a strategy tailored just for you. 

You might want to consider growing investments outside of your super, too. This gives you more diversified “baskets” that you can draw funds from later on and protect you against unexpected fluctuations. 

Downsize

Downsizing to a smaller home later in life means lower maintenance. This could free up more funds for your savings. Just make sure that you consider everything and see if this will be a financial gain for you. It’s not just your home, though…

You can also review your cash flow to check where you can cut back on some of the things you can live without to have more funds for your super or your investments. For instance, you might want to have fewer streaming services or even fewer dinners out. This might not sound like a lot, but the cost of these can add up. 

Bottom line: It’s Time to Build Your Retirement Fund Now!

Always remember that it’s never too early to start planning how to maximise your funds for retirement! Hopefully, these basic strategies can help you prepare for the future. Of course, you can have a more detailed and efficient plan if you get the services of a seasoned financial planner in Newcastle. If you need guidance on financial planning for retirement, Newcastle Financial Planning Group are here to help. Book a complimentary initial meeting today.

Want to learn more tips to retire debt-free? Check out these interesting blogs!

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.
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