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- August 10, 2017
How to prepare yourself for retirement?
If you are here, it either means that retirement is around the corner, or the idea of it worries you.
Either way, planning is the key to ensuring you have a secure retirement. Whether you are 35 or 45, we understand why you might start planning for the rest of your life.
Preparing for retirement can seem like an extremely daunting and stressful thought. As you approach the end of your career and retirement is on the cards, research and preparation can be useful in resting these concerns.
As you reach your forties, fifties or sixties, there is no doubt that the ultimate presence of retirement has crossed your mind and you have thought about what you need to do in order to make sure you are being properly benefited.
For some, retirement is considered scary because it means that you will have to get used to not having a stable and consistent career income. However, this doesn’t mean that you can’t be comfortable and relaxed.
Early planning and taking necessary precautions can help make retirement stress-free, enjoyable and provide you with a smoother transition process. You deserve the break so make sure you have planned it out correctly.
Beyond preparing yourself emotionally for a vast life change, your finances and situation are vital parts of contributing to a happy and successful employment.
So, in order to achieve a happy employment, take care of your finances and form a retirement plan in the years leading up to your retirement to prevent stress and hassle.
We have compiled a list of steps to take to make this possible for you – questions to ask yourself in the months leading up to retirement and knowledge to take on when choosing where to go, what to do and, most of all, how to properly approach retirement.
The prospect of “retiring”
Fortunately for us living in Australia, there is not a fixed age for retiring in our country which means that it is completely and utterly up to you and your circumstances.
However, keep in mind that you are only allowed to access your superannuation fund at 55 years old, so you might not want to leave work before then if you do not have a comfortable amount of money to live off without a weekly pay coming in.
The age pension in Australia begins at 65 which assists in the retirement process. We recommend looking into what you are entitled to in terms of pension and superannuation before you make the decision to quit your job and join the retirement club.
Many people choose to gradually transition into retirement and it is a very clever way to go about it. If you ease off your work load in the years leading up to your complete retirement, you allow yourself to get used to a life without work.
Delaying complete retirement might help the way you feel towards it emotionally. It means that you are still spending time in a career position that you are passionate about and it eliminates feeling lost or directionless. Nobody wants to grow up so why not delay the process?
If you think that you might not be able to handle quitting your job entirely, cut back on some hours and let yourself transition slowly and gradually.
But beyond that, here’s some ways to secure yourself financially for your future.
1. Control your finances and identify ways you can make them work for you.
A lot of people take the necessary steps towards their retirement by directing a focus and plan towards their financial circumstances and income. There are various ways that you can successfully plan for a retirement.
The common ways are having a superannuation fund, opening an extra retirement savings account, directly investing money into things like property investments and controlling managed investments through institutions.
If you are confused about the way to go with your finances or if you should be taking more precautions than you already are, then there is no harming in seeking a professional financial advisor that could lead you in the right direction.
Through properly identifying your finances, living expenses and investments, you can come up with a financial plan that ensures you will be living stress-free when you are no longer working and retired.
You can also use this as an opportunity to look into safeguarding your assets and making sure they are being correctly dispersed in a way that you want and have decided on.
If you get onto your financial planning early, you can decide on ways that are going to give you a solid income as a retiree. Opening up saving or investment accounts, renting out any investment properties and coming up with a proper retirement plan is the best way to successfully retire.
2. Come up with a retirement plan
Before you retire, identify what type of lifestyle you want to have as a retiree. It is important that in this part of the process, you remain realistic about what type of lifestyle you can afford to have and one that you can realistically achieve.
Sadly, for most of us, it is not likely that we are going to take off on a yacht and never return. So plan out some reasonable goals and aspirations. This way you have something exciting to look forward to and a goal to reach for.
There are many parts of a retirement that we have to keep in mind. It is completely necessary to think about what your life is going to be like post-career.
Do you still want to have somewhat of a career? What hobbies do you want to do? Are you going to keep living where you are living now? Do you have a partner that takes part in the retirement planning? These are the sorts of questions you need to ask yourself before you make retirement your reality.
The reason these questions are so important is because they all play a part in your happiness. Concentrating on all aspects of your health matter – physical, social and emotional wellbeing are keys to being happy in your retirement life.
3. Seek advice or assistance
Beyond financial advice or direction, retirement actually involves a lot of different decisions and sometimes these decisions are hard ones to make on your own. But, like with anything else in life, a big recommendation for something like this is seeking advice from other people or professionals so that you can feel confident in your decisions.
To make this possible, identify what your biggest concern is when it comes to retiring. If it’s your financial circumstances – talk to an accountant or a financial advisor and they will be able to point you in the right direction.
If you are worried about how retirement will affect you socially and emotionally due to giving up work, branch out to people that have already retired, do your research or visit a psychologist to keep your health in check.
Retiring is a big life change so it is understandable that the way in which people react to it will vary. Speaking out and finding the answers you need will prepare you properly for what’s laying ahead. Retirement seems to have grown an uncomfortable or daunting stigma for the people that are approaching it but looking for assistance and seeking advice could help you not think this way about it.
4. Make a budget and seek your entitlements
When you are close to retiring, it’s important that you make a budget for when you have finally retired. You could identify all of your possible retirement life expenses and make a table of how much money you will need to be able to comfortably live.
These expenses could range from the simple necessities like groceries to big trips that you want to plan and go on once you have the freedom as a retiree. Putting such things into a retirement budget will mean that you know how much you need to account for and, in turn, how much you need to be saving and storing away.
Making contributions beyond the compulsory level to your superannuation could help you create a stable income for when you have eventually retired. It’s also beneficial and useful to seek all your entitlements. Get on the pension when you are of age to make your transition into no longer working easier and stress-free.
5. Never stop planning.
Planning for your retirement is very important but the planning does not stop there. Once you have retired, it is important that you stick to your plans and budgets and always make sure that your health is in check.
You did not work your whole life to find yourself in a stress, uncomfortable retirement.
We truly believe that keeping an eye on your assets, finances, expenses, accounts and opportunities will ensure that you are having the best retirement you possibly can.
Need advice? Just ask.