Retirement Planning
Why is it so important to plan for my retirement?
Most of us expect to retire one day; few of us really think about the impact of retirement on our financial security. This is surprising, considering we could spend a third of our lives as retirees. Whether retirement is still several years away or just around the corner, you should think about what you’d like to achieve in the years following full time employment.
Your lifestyle in retirement will be largely governed by your financial position. That’s why it’s so important to start planning for your financial security today.
The earlier you start planning, the more you’ll be able to generate for your retirement nest egg.
Don’t leave it to chance. With careful planning, your retirement could include some of the best years of your life.
What about the age pension?
Many people think they can rely on the age pension to provide them with an income in retirement.
However, to ensure social security benefits are only paid to those in genuine need, the Government uses strict assets and income tests to determine eligibility.
Furthermore, as we’re living longer and having fewer children, there will be proportionately fewer people in paid employment to fund retirees in the future.
The implication is that many people won’t be eligible to receive social security benefits in retirement. Using a sound investment plan, we can structure your assets to generate income, whilst maximising your social security entitlements, if any.
Social security eligibility is important, as it can give you access to benefits such as discounted pharmaceuticals and travel, and a variety of other entitlements.
How much money will I need?
The exact amount of money you’ll need will depend upon the following factors:
- The age at which you wish to retire;
- The number of years until you retire;
- The lifestyle you wish to lead;
- The level of income you’ll need; and
- Your current savings.
