Planning is key… and so is getting advice!
Avoiding pinching pennies in retirement because you haven’t saved enough means serious planning.
First, figure out how much you’ll need!
Find out how much income you will need by answering a few simple questions:
- What are your personal retirement goals? Do they include climbing mountains, lawn bowls, sky-diving or spoiling the grand kids?
- What kind of lifestyle do you want? Are you quite frugal or want to live it up?
- What is your life expectancy? Do you have good genes and are likely to outlast your cronies? Or have you lived a little harder than most and might not see the great-grand kids arrive?
While it’s relatively easy to set goals and have some lifestyle expectations for retirement, estimating how long you’ll live can be tricky, but is crucial to your retirement decisions. It can help decide your own asset allocation or when to stop working to ensure you have enough funds for your retirement.
Although there are tools and calculators you can use for working out life expectancy, your financial adviser can help guide you through the process too. Your adviser can also help you come up with an estimate of your required retirement income based on your lifestyle expectations, risk profile and life expectancy.
Second, ensure you’ll have enough income!
With an estimate of how much you’ll personally need, your adviser can make recommendations to help you meet your required retirement income. These strategies may include transition to retirement or contribution strategies, growing your retirement fund by investing some or all of it or even growing wealth outside of superannuation.
Most investment products carry some sort of risk, so it’s important to choose ones that suit your risk appetite and need for returns.
If you want a regular flow of income in your retirement, there are options available for you, as well as ensuring you won’t outlive your funds.
Always seek professional advice and how you can get appropriate outcomes for you. And of course, I’d love to help!