Retirement planning — more than owning your home
While modern life is exceptionally busy, any decent financial Adviser will tell you that today is the best time to
start planning for your retirement; the earlier you plan, the better placed you
will be to enjoy it.
With life expectancy at its highest recorded level
there are a lot of years to fill between retirement, generally at 65, and the
80.3 years an Aussie male can expect to see out, or 84.4 years for women,
according to the ABS.
With the averages suggesting you’ll have between 15
to 20 years or more to fill before you fall off the perch, you’ll need
to consider the length of your retirement, inflation (the price of living
now will not be the price of living when you retire), and whether you will have
sufficient cash flow to fulfill your retirement wishes.
In fact, for many people, this will be the longest
holiday in their lives.
It’s unlikely there will be a pension of any
substance in the future and at the current rate of inflation, the spending
power of a fixed rate pension will be halved in just over 12years
So here are some tips to help make your golden years
your best years.
Seek professional advice
It’s hard enough for experts to know which are the
best investments, so why would you choose to wade through the maze of
information (and misinformation) all on your own?
Having an objective and professional third party
review help you formulate your retirement plan makes logical
Looking at how your super is invested regularly can
make a big difference to the final amount you have when you retire.
Does your super’s asset allocation still fit with
your risk profile?
Even a small increase in super contributions can
have a big impact on the lifestyle you will enjoy in retirement, so get some
financial advice on making your super work harder for you.
Check your life
The best life insurance cover will ensure you are
not paying too much and will avoid putting you and your family at risk with too
It pays to review your life insurance policy after
each major life event— buying a first home, starting a business, having
children, or preparing for retirement.
At the very least, a review will give you the
opportunity to explore different options for paying your premiums.
Plan your estate
While it can be difficult, it is so important to
discuss with your family your wishes for the distribution of your assets when
Some of the key things to consider in this process
A valid will —dated
and witnessed by two people who are not your beneficiaries. No will, or a
poorly worded will, could mean that your assets won’t be distributed according
to your wishes and may cause delays, additional costs, and possible tax
implications. Be sure to update your will regularly as your financial, health,
lifestyle, and family circumstances change.
Power of Attorney—
planning before an emergency will give you and your family the opportunity to
review all options and avoid significant legal and financial burden. There are
different types of powers of attorney, which can also depend on which State or
Territory you live in, so you should get legal advice on what best suits
if you have a business partner/s, it’s important to have a strategy in place
that will ensure your share of the business is passed on to your estate as
quickly and as efficiently as possible in the event of your death or
Get financial advice— estate planning is very complex and can prove costly
when done incorrectly. An experienced and trusted Financial Adviser will help
you to understand all of your options and create a plan that meets your needs.
So there you have it…start today.
Procrastination will only lead to lost
Friday, 5 March 2021