For many of us, retirement day is neatly circled on the calendar a year or two from now, but for a large number of Australians things don’t always go to plan.
According to the 2021 Household, Income and Labour Dynamics in Australia (HILDA) Survey, 41% of Australians don’t actually retire on their own terms. Life events throw plans into disarray and suddenly the question becomes not “Will I have enough to retire?” but “Help, I’m retired! Have I got enough to live on?”
When it comes to retirement planning, putting your head in the sand is not a great strategy. Enlisting the help of a financial planner is, however, an excellent strategy. Benefits include:
1. Puts you in control. Thinking ahead and maximising all the options enables you to retire on your terms.
2. Avoids elevated stress and anxiety. The peace of mind that planning and preparation can provide is everything when you give up that regular paycheque.
3. Clarifies your goals and aspirations. The key is knowing what we want to do and having a financial plan to make it happen.
4. Cuts through the noise of RIC. The Retirement Incomes Covenant, new legislation from 1 July 2022, will result in superfund trustees offering comprehensive new income products for retirement. Which one is best for you?
5. No last-minute decisions. Spur-of-the-moment choices don’t usually make for the best outcomes. Big questions are all questions best answered ahead of time, before they become critical.
6. Opportunity to buy back your time What if you could give up work now, or at least cut back on your hours? No one wants to miss out on opportunities and experiences because they’re worried the money will run out.
7. Make the most of Super When you retire, a big chunk of money in the form of your Super effectively drops into your lap. A financial planner can develop a strategy that makes it work as hard as possible.
WMP are WA’s financial retirement specialists. To find out how we can help visit our website at wmpgroup.com.au or give one of the friendly advisors a call on 9368 6030.