From projecting your retirement savings and setting goals to structuring your super, here’s how to plan for a safe, secure and fun retirement.
Most of us dream about the day we can finally stop work and do all the things we never have time for – extended travel, spending time with the family, exploring new hobbies or getting involved with our community.
Whether you’re close to retiring or still in the mid-stages of your working life, financial planning for retirement can feel like a monumental task. It’s easy to put it in the too-hard basket but the sooner you start retirement planning, the greater chance you’ll have of enjoying your golden years. To make sure your retirement years are secure, comfortable and fun, you’ll need a financial ‘cushion’ capable of funding your lifestyle for as many years as you might live.
Here’s some simple steps to get you started:
1. Calculate how much money you’ll retire with
For some, having a rough idea on how much money they’ll have in their super provides peace of mind. Many superannuation websites have a retirement savings calculator that can project how much you will have saved in your nest egg at retirement age.
2. Set retirement goals
Retirement planning must always begin with one thing: setting goals. Ask yourself how you see your life playing out when you retire, and then think about how long you have to achieve those goals. Then, refer back to the retirement savings calculator – will this projected amount be enough to achieve your goals?
3. Put a plan in place
The best time to plan for the end of your career is right at the very beginning. Your ability to adapt to the ever-changing world around you will be much easier if you plan for financial security in your 20s. In a perfect world, you would have been paving your path to retirement since you took your first job. This could be as simple as depositing money into a retirement savings account. That being said, anyone at any age can boost their retirement savings with the right advice, planning and strategy in place.
4. Don’t delay saving for retirement
Waiting until you hit a certain age to start saving is one of the biggest retirement planning mistakes you can make. The earlier you start saving for retirement the better. To put it simply, if you need one million to retire, it’s much easier to save this amount over 20-30 years than it is five years before retirement.
5. Keep a close eye on your super
Superannuation generally forms a large part of your retirement nest egg, so it’s vital to make sure you have the right structure and investment allocation.