The building blocks to a successful retirement
Retirement is often that far off existence and dream that we refer to… “when I retire I’ll do this…” But are we actually preparing ourselves financially for our post-work life?
Travel, grandparenting and plenty of downtime may be how you’re dreaming up your later years. It's important to consider how your financial position can support that vision and plan.
One of the best methods to calculate your retirement needs is to work backwards. What do you want your retirement to look like? What assets do you currently have to support you and which ones have growth potential? What financial commitments do you have long-term? Do you have loved ones to support?
All of these are very good questions to be asking about your future!
Here are five building blocks we would consider in structuring a successful retirement plan:
Superannuation
Superannuation is one of the most fundamental pieces of your financial future. For most people, it's the biggest asset they own, besides their home. You may consider investing more in your superannuation throughout your working years to boost your income post-work. You may also want to consider splitting super with your spouse to make your savings more tax-effective and maximize your retirement funds.
2. Cash investments
Cash funds, savings accounts and other cash investments are considered low risk investments and are fairly accessible. Many retirees have cash investments built up over time. Retirement can be a good point to consider what to do with that money - where you might want to invest it in this next phase of life.
3. Property
Property will be one of your biggest assets heading into retirement with most people holding a lot of equity in their property as they enter retirement years. Retirement may also prompt a change in living including downsizing, relocating or purchasing an additional holiday home. Equity in your family home can help you make your next property decision.
4. Businesses and other revenue
Self-employed people should consider elements of their business i.e. succession planning and various income streams. If you can be receiving income throughout your retirement, that is an ideal position. Whether that’s dividends from shares, investments in businesses etc. this is an ideal building block to consider throughout your working years. Start with the question, where can you be investing for your future with your current opportunities?
5. Supporting dependants
You may have other people in your life who you must consider during your retirement. Ageing parents or children needing additional care may need your ongoing support. Supporting your loved ones throughout your retirement, whether that be physically, emotionally or financially should be an important consideration in your financial plan.
It’s never too early to start considering your retirement. What are you doing now with your money, assets and career that could impact your future?
Chat to our team today to begin your retirement plan.
