Your retirement plan
It’s never too early to start planning for your retirement!
Retirement looks different for everyone, so spending time thinking about what you would like from this next phase in your life is an important first step. While there are many aspects to planning a healthy retirement, we’ve outlined key steps to help you start preparing for your retirement journey.
What is your current position?
You don’t have to spend a lot of time working 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?
You may even want to establish a budget by using a planner or calculator such as the one found here.
What will your retirement look like?
Now that you have a better picture of your financial position, the next step is to start dreaming about how you’d like to spend your time and what you will need in the future:
- Think about your retirement goals
- Learn more about the Australian average cost of living in retirement
- Calculate your estimated retirement needs and how long your super is likely to last.
What about the Age Pension?
For most Australians the Age Pension is the bedrock of retirement incomes, so it is important to understand how this is calculated and whether you are likely to be entitled to receive it is important.
The first consideration is the age of entitlement. The age of eligibility depends on your date of birth:
This doesn’t mean that you have to wait until you reach the Age Pension age before you can stop working. Finishing before this point may require a bit more planning by ensuring you have enough of your own assets to live off in the mean time.
Set your goals
Retirement, and planning for it, is probably one of the biggest life decisions to make. It takes time, planning, courage and in many cases, guidance, to feel comfortable about taking the next step. Now that you’ve thought about your current situation, your goals and your income needs, you need to ask yourself:
When do you want to retire?
Don’t forget to consider important factors such as when you can access your super, what your financial or family commitments might be, and any current and future employment arrangements.
- Will you ease into retirement or jump in with both feet?
Would a Transition to Retirement pension account help you reduce your working hours to ease into retirement or are you likely to retire fully and consider a Statewide Super Pension account?
- 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?
List all the things you plan to do in retirement, then use the retirement planner to work out how much you’re likely to need. Remember to take into account the average life expectancies in Australia, your own health, family longevity expectations and anticipated lifestyle.
- Will you need to repay debts?
Will you need a lump sum to pay off your mortgage or other loans?
Bringing it together
Now that you have considered your needs, will you have enough?
As a Statewide Super member there are many ways for you to understand when and how your retirement plans can come together. If you want to keep working on this independently, then we suggest you run calculations through our online calculators.
You may also need to look into ways you can grow your super while you’re still working, so that you’ll have even more to live on when you retire.
Need advice on your retirement options?
It’s always best to get financial advice before you retire.
Our specialist financial planners are the retirement experts and can help you structure your affairs easily, cost-effectively and with minimum fuss.
And, as a Statewide Super member, your first appointment is included in your membership. If you proceed with advice, some, if not all, of your advice fees can be deducted from your Statewide Super account (for super-related advice only).
Call 1300 65 18 65 to find out more or simply book a one-on-one appointment online.
The information provided contains general advice which does not take into account your specific objectives, financial situation or needs. You should consider the appropriateness of this general advice with regard to your personal circumstances, obtain independent financial advice, and consider the applicable Product Disclosure Statement before making an investment decision.
*Statewide Super holds an Australian Financial Services Licence (AFSL) that allows it to provide general and personal financial advice. Statewide Super Financial Planners are employees and Authorised Representatives of Statewide Super, who is responsible for any advice given to you by them.
Statewide Super also has an associated network of financial advisers (“Associated Advisers”) based locally and regionally. Advice provided to you by these Associated Advisers will be provided under the AFSL held by a third party. That third party is responsible for the financial advice given to you by an Associated Adviser.
For further information and a copy of the applicable Statewide Super Financial Services Guide (FSG), visit www.statewide.com.au or call 1300 65 18 65. A copy of the relevant FSG for an Associated Adviser can be obtained by contacting the Associated Adviser directly.
After decades of saving and working, retirement is considered your ‘golden years’ – the time when you don’t have to get out of bed on a cold winter’s morning if you don’t want to.