Your retirement plan
It’s never too early to start planning for your retirement!
The first step in any good financial plan is to understand where you are now so that you can work out where you’d like to be in the future. Follow these steps and start to prepare yourself for your retirement journey.
STEP 1: What is your current position?
You don’t have to spend a lot of time to work out your current financial position. Start by asking yourself these questions:
- What’s your current income?
- Is your income likely to change in the next 12 months?
- What are your current debts and expenses?
- How much have you already saved for retirement, e.g. super, cash and other investments?
- Will you be eligible to receive any Centrelink or Department of Veterans’ Affairs (DVA) entitlements?
STEP 2: What is your retirement vision?
Now that you have a clearer picture of your financial position, the next step is to work out where you want to be in the future:
- Think about your retirement goals. What would you like to be doing in retirement? Writing a list or a vision of your ideal retirement may help to solidify this in your mind.
- Learn more about the cost of living in retirement. The ASFA retirement statistics provide an approximate indication of how much the average Australian will need to support their lifestyle in retirement.
- Make an appointment with a Financial Planner to discuss your plans and find out the best way to invest your retirement savings.
STEP 3: Set your goals and go for them!
There are a range of decisions for you to make that will shape your retirement experience. We encourage you to think about these questions and obtain financial advice to confirm if your retirement plan is sound.
- When do you want to retire?
Any number of factors might come into play when determining the right time for you to retire, like when you can access your super, your financial or family commitments and your employment arrangements.
- Will you ease into retirement by reducing your hours?
If you’re thinking of easing into retirement, taking out a Transition to Retirement pension allows you to reduce your working hours and supplement your income by drawing on your super through an income stream while you’re still employed.
- What sort of lifestyle do you want in retirement?
Think about all the things you plan to do, such as travel, volunteer work, spending time with family and friends, looking after your grandchildren or pursuing your hobbies. You should also consider where you’ll live, what car you’ll drive, your health and what you’ll do for entertainment.
- How much will you need to fund your retirement?
This will depend on how you answered the last question. Consider the cost of all the things you plan to do in retirement.
- Will you need a lump sum payment or a regular income stream?
Consider whether you’ll be able to manage with a regular income through a pension product or whether you’ll need a lump sum amount to pay off your mortgage, or a combination of both.
Still confused about your retirement options?
There is no better time to obtain financial advice than before you retire. Setting up a retirement plan that aligns with your financial and lifestyle objectives is key to a glorious future. Statewide Super are the retirement experts and can help you structure your affairs, easily, cost-effectively and with minimum fuss.
Call 1300 65 18 65 to find out more about our super Financial Planning* service. As a member, your first appointment is provided at no cost.
Call our friendly Client Services team 1300 65 18 65 if you have any questions.