In the last few decades the whole concept of retirement has shifted – from what was once seen as the beginning of our ‘twilight years’, to a time that is now regarded as a new beginning, an opportunity to get your ‘second wind’, to take off and not look back.
In many ways retirement has become a new life stage. Thanks to better health care we are living longer, meaning that some Australians will spend more time in retirement than in the workforce.
Another significant change has been the trend towards retirement planning. Thirty years ago, most people automatically retired at 65, or earlier – it was just the done thing. Financial planning was fairly random, if at all existent, and it usually only took place after you had hung up your work boots for good. These days though there is overwhelming acceptance of the need to prepare for retirement. In my view this is far more sensible, especially considering our sometimes uncertain economic times and Australia’s rapidly ageing population.
People often ask me when is the best time to start planning for retirement. In a perfect world I believe you should start the day you join the workforce. You are never too young to start thinking about your retirement plans. But realistically, I think you need a minimum of five to 10 years to prepare properly for retirement. The more time you give yourself the better.
I believe in keeping things simple, and planning for retirement is no exception.
here are my top 10 tips for retirement
- plan ahead
- cost your dream
- fund your dream
- take steps now if you are coming up short
- take advantage of Government assistance and other sources of retirement funding
- cut back on tax where you can
- get the right investment mix for you
- consider the kids (if you want!)
- take aged care into account
- take action.