A guide to retirement planning
Retirement for a lot of us is a time of freedom to finally do our own thing. Many see it as an opportunity for some serious travel, to spend a bit more time on getting that fitness back and possibly enjoying almost as many years out of the workforce as those in it. For others it’s an opportunity to seek fresh challenges in a different area of paid or unpaid work, learn new skills, help others or take up studies.
There are many questions to address in planning for retirement particularly the changes you will encounter when you retire. Following are some of the key aspects to consider in the process:
To work or not – If you’re approaching retirement there are a number of options available here. You might be considering a clean break from your job to embrace new opportunities and a life more leisure oriented. There is also the option to look at transitioning out through part time, casual or even volunteer work. There may be other work goals you’d like to achieve. Many people enjoy having the time to learn new skills.
Your lifestyle options – A whole new world of lifestyle options can open up through retirement – that long overdue world trip, those new hobbies and activities you’ve never had time for previously, connecting more with the local community and spending more time on relationships with family and friends. Having a sense of purpose and that you are using your time in a meaningful way will help you adapt to retirement.
Health and wellbeing – This becomes even more paramount now and you do need to factor in the possibility of increased healthcare requirements. Keep active and alert with regular check ups and remember diet is important – you are what you eat.
Money – As you prepare for this stage of life, many of your decisions should be focused on how large you need your nest egg to be, what tax benefits you can use, and how to balance risk and stability. This is a really good time to have financial advice, to think about releasing equity from the family home and boosting your tax-friendly personal contributions to super. Most people in this life stage will be hoping to be debt-free and they may reduce their superannuation options to a low-risk portfolio, stable with low yields. Understanding new Aged Care reforms and Centrelink assessments for the pension is important.
Where to live – There may be a need or motivation to move. This might be triggered by financial reasons, a need to be closer to essential services or family, more appropriate home facilities, or convenient transport options. Also keep in mind access to social and community services.
Legal issues and estate planning – If you haven’t got a will organised this should be an immediate priority and form the cornerstone of your estate planning to ensure all your affairs are in order. Make sure you include appointment of an Executor and Power of Attorney.
For peace of mind it’s worth investing the time to create a plan to ensure you can make the most of the years ahead.
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