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Planning your retirement

Planning for peace of mind.

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Retirement is a big milestone. After decades of hard work and commitment, we all hope for comfortable golden years.

Retirement can also be a stressful time, bringing change and some unknowns. Some people worry about having enough of a nest egg to last throughout retirement, but with the right professional financial advice, you can take the stress out of your restive years and live the idyllic lifestyle you’ve always dreamed about.

Getting ready to retire

You may want to start planning decades before you expect to retire. Consider doing some financial spring cleaning to help you get ready for a worry-free retirement. You could start this by:

  • Finding all your super funds
  • Reviewing savings and debt 
  • Gathering and filing key financial documents 
  • Reviewing your insurance premiums 
  • Making plans with your spouse and family.

Plan before you retire

You may have big plans for your retirement – like the trip to Europe that you’ve always wanted or a new home up the coast, closer to grandchildren – or you may be more concerned about being able to afford your current lifestyle. You may want to quit work at 55 or you might love your job and prefer to stay in work for as long as possible. Or you may run your own business and need to think about succession planning. There are many different ways to retire but they all involve significant planning to make it a reality.

Your retirement planning might involve:

  • Boosting your superannuation contributions 
  • Setting a retirement date and working towards it 
  • Discharging your debts 
  • Analysing cash flow to establish your retirement income needs 
  • Increasing your wealth through diversified investments 
  • Succession planning 
  • Estate planning.

How much will you need?

The Association of Super Funds of Australia (ASFA) has crunched some numbers on this. They have figures that show how much a single person or couple will need when they retire. ASFA also have a retirement tracker that you may want to bookmark and use when you get right into budgeting for your retirement.

Here are some other things you may want to consider:

  • Your target retirement age: the good news is Australians are living longer, but this also means your super will probably need to stretch that bit further too. • Your lifestyle and expenses Look at every aspect of your spending and make tough decisions about what you can and can’t afford. That means looking at regular health and wellbeing expenses, cars, overseas holidays, dining out, and so much more. 
  • Planning for the unexpected: get peace of mind by factoring in the unknown. No one wants to think about accidents, bereavements or major illness, but planning for the worst is prudent. Think of an emergency fund to cover you for any surprise costs, or which insurances could help alleviate possible disruptions to your retirement plans.

Where will you get income?

Once you figure out how much your retirement will cost, it’s time to look at where you’re going to get income to pay for it. ASIC’s MoneySmart website has some useful retirement income resources to help you understand the many options.

Common income streams for retirees include:

  • Income from super 
  • The Age Pension 
  • Part-time work 
  • Investment property: selling investments or collecting rent.
 

If you need to talk to someone or learn more about these income sources, try the Department of Human Services’ Financial Information Service for a free consultation, resources and state-by-state seminars. And don’t forget that our expert financial advisers can also provide you with clear, paid-for personalised advice.

This article is intended to provide general information of an educational nature only. It does not have regard to your objectives, financial situation or needs and must not be relied upon as financial product advice. Before you act on this information, you should consider whether it is appropriate for your circumstances. Information in this article is current as at the date of publication. Applications subject to approval, fees and charges are payable. Terms and conditions apply and are available on request. You should assess the Product Disclosure Statement (PDS) before deciding whether to acquire or to continue to hold these products. You can obtain a PDS by calling us on 13 19 87 or visiting a branch. This material has been prepared by Newcastle Permanent Building Society Limited ACN 087 651 992, Australian Financial Services Licence/Australian Credit Licence 238273.

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