As financial planners, we often get asked how long people need to plan their retirement – but the answer ultimately depends on you and how early you start.
In fact, the earlier that you start planning retirement the better, as it will mean that you will have a clearer picture in your mind of what sort of lifestyle you want to achieve.
Planning ahead will also allow you to have a longer period to save over, leaving you with more freedom in your later years instead of saving at the last minute.
However, occasionally some of us do leave it to the last minute, which means that you have a shorter amount of time to plan and save for your retirement. A smaller nest egg may mean that you need to rely on the government provided aged pension, which can then impact the type of retirement lifestyle you wish to lead.
sorting your finances
Before creating your retirement plan, it’s highly advisable to meet with a financial planner first. This way, you can be sure that you will be receiving quality advice on how to plan your finances accordingly.
When you meet with a financial adviser you can establish what your assets and liabilities are, and how to pay down any debt that you have. This will enable you to eliminate as much debt as possible before you actually reach retirement, leaving you to have more financial freedom in your golden years.
Your adviser can also help you to identify a timeframe for when you actually want to retire, and when you begin saving for it.
creating your lifestyle
After you have established what sort of assets and liabilities you have, you can then work with your financial adviser to find out what sort of lifestyle you want during retirement.
For example, you may want to consider the option of using the transition to retirement benefit to ease into your new life of leisure. Whatever you would like to do, it’s your choice – just make sure that you have the adequate funds to support you while you’re doing it!
According to the Retirement Standard released by the Association of Superannuation Funds of Australia, a retired couple would need around $56,317 per year in order to live a comfortable lifestyle.
This just shows how much is needed in order to maintain general costs of living during retirement, and highlights the importance of starting planning as soon as possible.
we can help
If you are thinking about planning retirement, we can help. Why not get in touch by calling 1800 626 881 or by using the ‘contact us’ tool on our website.