Many people look forward to retirement and think of things like holidays, spending time with friends and family, and enjoying their favourite hobbies. However, to enjoy an active and comfortable retirement, you need to be planning now.
Pre-retirement planning and saving are essential whether your retirement is just a few years away or far down the road. According to research by Finder, three out of every five Australians fear running out of money in their golden years more than they fear death. It is a concern that needs addressing.
It can be challenging to understand all of the finer points of preparing for a comfortable retirement, which is why getting wealth advice from a financial expert while you are still in the pre-planning stage of retirement is essential.
How Can a Pre-Planning Retirement Program Help Me?
At Freedom Wealth Services, our experts understand your position and have strategies to advise you before it is time to retire. During our years working with those in the pre-planning phase of retirement, we have witnessed the emotional relief that comes when clients take charge of their future and work towards goals that matter to them.
You will get many benefits from pre-planning your retirement with a wealth coach, including:
- Effective strategies for planning your future retirement
- An accurate assessment of your current financial situation with a wealth check
- Help you to make difficult decisions now so that you can enjoy your retirement on your terms
- Explanations regarding how different choices will affect your future goals
- Guidance from professionals as you move closer to retirement
- Support managing your funds through various stages and retirement options
- Practical advice about your finances so you can make the best choices possible
Steps Towards the Retirement of Your Dreams
1. Decide on the lifestyle you want in retirement. This is a personal preference. There are no right or wrong answers. Would you rather have a modest retirement with enough to get by but little left for splurges or extras? Do you want a comfortable retirement with the funds to travel, buy high-end products, and discretionary funds? The type of retirement you want will have a significant impact on your planning.
2. Aside from your ideal lifestyle, you will need to have enough money for other costs in retirement, such as:
- Paying off your mortgage or paying rent
- Medical costs
- Outstanding debts
- Insurance costs
- Auto maintenance or other transportation costs
- Home maintenance or renovation
- Emergency expenses
3. Estimate how much money you will need in your Superannuation account based on your preferred lifestyle and expenses. There are tools you can use to help calculate a ballpark figure of how much you should save to support lifestyles under different circumstances.
These are purposefully vague and offer a rough target of the amount of savings necessary. Working with a wealth coach who knows you and understands your goals will provide accurate numbers, so you know what you will need.
4. Address any existing debts and pay them down as quickly as possible. This includes personal loans, car loans, and credit card debt, to name a few. As you pay off debt, you free up money to put towards your nest egg.
Heading into retirement with significant outstanding debt increases the challenges you will face. Meeting with a wealth advisor can help you make a plan to help you get out of debt and start saving for your future.
5. Review your insurance and make sure you have what you will need for your retirement in place. Many people have their insurance tied to their Superannuation. It is worth your time to ask a financial expert about insurance and what you will need in retirement.
6. Work on building your Superannuation to prepare for retirement. The sooner you learn about the details of your retirement finances, the better. You will have more time to make voluntary contributions to your Super as well as make other financial moves and plans.
Now is the time to make changes if the numbers you see are not as much as you hoped. A few general tips from moneysmart.gov include:
- Changing your Super investment options
- Merging your Super into a single account so you pay fewer fees
- Make extra contributions to your Super to build your savings
These ideas are generalised and cannot match the solutions you would get if you were working with a wealth advisor who could guide you to the wisest options to build your wealth ahead of retirement.
7. Do not move ahead on your own. You are savvy and understand many complexities. However, retirement can be exceedingly complicated. You have so much riding on your decisions. Having a professional on your side will protect you from misinformation and scams aimed at parting you and your hard-earned savings.
8. Plan for regular wealth checks after you retire. You will want to meet with a wealth advisor to make sure you are still on the best course for your future. Freedom Wealth Services offers a retirement program to ensure your money is growing. Your retirement does not mean your money can stop working for you.
The retirement program offers you the following benefits:
- A solid financial strategy based on your wants and needs
- Maximised financial potential
- Options you may want to explore to increase your wealth
- Expert tax guidance
- The support of professionals who care about you and your plans and will work to ensure you can enjoy the lifestyle you have always dreamed about having
Preparing for your retirement can feel daunting, especially if you are beginning to grasp the reality that retirement is close at hand. It is important to stay calm and avoid getting caught up in emotional decision-making.
If you are unsure of your financial health, reach out to the experts at Freedom Wealth Services. The team has been providing wealth advice in Melbourne for years and has helped hundreds prepare for retirement. You can get a free wealth checkup and learn what you need to ensure your financial security, along with wealth advice from the best in the business.
*General Advice Warning – “Any financial product advice is provided by Freedom Wealth Services Pty Ltd AFSL 502934 The advice provided is general and is not personal financial product advice. The advice provided has been prepared without taking into account your objectives, financial situation or needs and because of this you should, before acting on it, consider the appropriateness of it regarding your objectives, financial situation and needs. You should carefully read and consider any Product Disclosure Statement (PDS) that is relevant to any financial product that has been discussed before making any decision about whether to acquire the financial product.”
You can contact Freedom Wealth Services Pty Ltd on 1300 843 400 or by visiting our website at www.freedomwealthservices.com.au