10 Tips To Prepare For Retirement

Updated: Oct 22, 2018

Looking forward to an enjoyable retirement? Check out our top 10 tips to make sure you’re on track.

Tip 1: Take stock

How do you want to live in retirement? How much will it cost? How much income do you think you’ll need to fulfil your post-retirement lifestyle? Have you already accumulated any savings? If not, what action do you need to take now?

Tip 2: Plan for the rest of your life

Evidence suggests that the average-life span is increasing, meaning most people will be retired for longer than they expect. Plan for the long term, and don’t forget that you may need extra assistance or care as you get older.

Tip 3: Review your investments

For your savings to last the rest of your life, you need to invest for the long term. And that means getting the investment mix right, with a balance of income and capital growth. Diversifying your investments across cash, fixed interest, shares and property can help to reduce risk and achieve smoother, more consistent returns over time.

Tip 4: Stick to your plan

Investments can quickly change in value. While it can be tempting to sell everything when the market falls and put all your money in cash, that can be a bad decision. It’s important to remain focused on the long term as markets usually recover if given enough time.

Tip 5: Get the structure right

By changing the way you own investments and receive income, you may be able to reduce the amount of tax you pay while also increasing your Centrelink or DVA benefits. Even if you aren’t eligible for an Age Pension, you may be entitled to discounts and other benefits, which can save money over time.

Tip 6: Get your affairs in order

Estate planning allows you to pass on the right assets to the right people at the right time. The first step is putting a will in place, but you should also speak with your solicitor about a Testamentary trust, Enduring Power of Attorney and medical care directive. These can help your family fulfil your wishes if you’re not able to make decisions yourself. For more information about the necessities of estate planning, check out last week’s blog, Estate Planning – The Basic Essentials.

Tip 7: Stay fit and healthy

If you stay mentally and physically active, you’re more likely to enjoy a long and healthy life. Take up a hobby, learn a new skill, keep working or volunteer in your community

Tip 8: Re-think the move

Some retirees have moved away from friends and family to their dream location only to realise it wasn’t what they hoped for. If the coast or bush is beckoning, try living there on a temporary basis first. It will give you time to work out if it’s the right move.

Tip 9: Think about the “what if's”

The last thing you need in retirement is for your finances to be affected if something unexpected happens to you. Review your personal insurance needs to make sure you are adequately protected. We have a recent article which goes into this further, titled: The Difference Insurance Can Make

Tip 10: Get help

Making financial decisions can be complex. Getting the right advice can make a big difference to your retirement. By starting to plan early, we can ensure you have a clear plan for how you can achieve the lifestyle you want in retirement. Give us a call at 1300 707 955 or email info@cpfinancialplanning.com.au to get started.