You might be sitting on your couch or office chair right now, believing that you’re ready to retire. However, what you think might be far from ideal. Many people might feel like they’re prepared to retire, only to find out they weren’t financially prepared to do so. Of course, your finances aren’t the only factor to consider; you need to assess other aspects as well. That’s why figuring out your retirement is a little more challenging than one might realise.
With that said, are you ready to retire? To answer that question, here are all the other questions you need to ask yourself first:
Question 1. What is the Retirement Age in Australia?
There’s no set retirement age in Australia, meaning that you can retire at any time. However, there are other factors to consider, such as your finances, ongoing employment opportunities, age you can access your super, and even your health. If everything looks good, then you can consider retiring. However, if some things still concern you, such as your financial situation, delaying retirement can allow you to make a little more money. This way, you don’t have to worry about anything else and enjoy a financially-sound retirement.
Question 2. What do I want to do when I retire?
What you do after you retire can heavily affect what you need to have ready before you retire. For example, if you’re planning to do lots of travelling, then you might need to save up a lot – this is in contrast to the likely lower expenses you need if you enjoy being a homebody.
In other words, you need to understand all that you want to do after you retire. Everything from your social life, hobbies to recreational activities can affect your retirement strategies to ensure your expectations are met in the future.
Question 3. How much money must I have saved up for a comfortable retirement?
Again, how much you save will heavily depend on what type of lifestyle you want after you retire. However, the Association of Superannuation Funds of Australia (ASFA) has calculated figures you can check to determine your situation. They’ve found that, for couples, you will need to save up around $640,000 or more for a comfortable retirement. For singles, $545,000 or more should be enough.
Question 4. Where will the money I need for retirement come from?
There are a few sources from which your finances can come. It can come from your super fund, government benefits, or even personal savings. Whatever the case may be, we recommend having more than one source of money. That way, you can more than likely meet your financial needs, ensuring that you can enjoy each day without worrying too much about money.
Question 5. Should I add more to my Superannuation?
If you have superannuation, you might want to consider making extra contributions to it. While this will mean you have less money to spend right now, you will be happy that you did so when you finally retire. With that in mind, there are many ways to boost your super, like salary sacrificing, a downsizer contribution, and spouse contributions. Be sure to do your research to understand the rules, pros and cons of each method to grow your super.
If Uncertain, Ask a Trusted Financial Adviser!
By finding solutions to all the questions above, you stand a better chance of finally calling it quits to your career and retiring to a comfortable life that you can more than confidently say you love! That said, retirement is one of the most significant decisions in anyone’s life, and with so many factors to consider, you might still be worried about whether or not you can retire now. In that case, we recommend that you reach out to professional financial advisers. They can assist you in crafting a financial plan that you can follow that takes into account your financial standing now and what your retirement goals are. Their plan will help you meet your financial needs, ensuring that when you retire, you are financially sound.
To know more about tips in managing your finances during your retirement years, check out these posts:
- Questions You Need to Ask Your Financial Planner
- How You Can Financially Prepare for an Early Retirement
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Sydney Wealth Advisers are professional financial advisers and planners that work closely with their clients, helping them identify suitable strategies to finance their dream lifestyle. If you are looking for a financial adviser in Sydney to help you plan for retirement, work with us today!
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