It is important to start planning for your retirement as early as possible. Time is our greatest asset. The earlier you start planning for a secure retirement, the less you will have to save as retirement approaches and the greater the power of compounding.
With retirees these days needing to fund at least 20 years of retirement on average and potentially much more, the challenge is how to do it and how to preserve your capital for longer.
Ultimately, having a comprehensive strategic plan in place takes away the guess work and will ensure that you have a steady, tax effective income stream when you are ready to either work part-time or cease work altogether.
When planning for your ideal retirement lifestyle, an important point to consider well in advance is will there be enough money to fund it. It is not just a case of determining how much money you will need, but what other changes can you expect and need to factor in. You will need to take into consideration inflation rates, care and medication requirements, housing issues, travel and more.
When thinking of money in today’s terms, you need to factor in inflation over the number of years until you retire and what this means for you in dollar terms at that point in time.
The variance between what you have now versus what you will require is your savings gap. Although returns will go some way towards bridging this gap over the long term, you should also be forward planning for any additional shortfall that applies. As your financial partner, we take away the guesswork. We help you determine any gaps and what strategies you can employ to help bridge the shortfall.
The retirement options available are extensive and the younger you start planning for it, the more benefits and options you will have. If you have a partner, you should be considering your retirement options together because in the long run, it is sensible to grow your superannuation together so that you can take advantage of the tax benefits. Alternatively, we can look at your capital requirements independently.
If you are planning for an early retirement or taking a redundancy package, getting the right advice is imperative. We can help you to better understand your situation including any tax consequences that apply and all available options so that you can make an informed decision that maximises the resources you have available. If you are forced into retirement, we will look at your future sources of income, what this means for you in terms of lifestyle and financial security and how you can best accommodate an effective solution.