As life expectancy continues to increase in Australia for both men and women, retirement years are extending.
According to the ABS, the average age Australians are retiring is currently 55.4 years.1
By the time you would like to retire, it would be beneficial to have a financial plan and be able to look forward to achieving some of your retirement goals. If you haven’t started planning for your retirement, it may be worthwhile to start planning as early as today.
Having a sound retirement plan that provides you with tailored financial strategies to grow your savings, can help you achieve your ideal retirement.
After all, the earlier you start thinking about retirement, the more time you have to grow your retirement savings and be on track to securing financial freedom.
If you are approaching retirement, it may be beneficial to seek an experienced financial adviser, who can provide you with strategic retirement planning advice and help you get on track to achieving a comfortable retirement.
Here are 4 ways to get you one step closer to securing your dream retirement:
#1: Determine Your Retirement Lifestyle and Your Needs
If you are nearing the end of your working years, you may want to ensure you have everything in place to be able to live comfortably during your retirement years. You may want to ask yourself the following questions:
- What does your ideal retirement look like?
- Will you need additional funds for travel and larger expense items?
- Will your retirement savings be enough to continue your current lifestyle?
According to the Association of Superannuation Funds of Australia (ASFA), the minimum annual cost of a comfortable retirement is $45,962 for singles and $64,771 for couples. This includes the cost for:
- Your daily living essentials;
- Your health expenses such as health insurance, medical appointments, exercise resources;
- Your lifestyle/hobby expenses; such as food outings, attending sports games, visiting the local club etc;
- Travel costs for an overseas holiday or visiting family members interstate.
By planning ahead, you can have a good idea of what your needs and wants are for your golden years and understand how much you need to save for your retirement. You can use certain financial strategies that will help you grow your savings and be on track to achieving your ideal retirement lifestyle.
Check out our blog to learn more about: How much you should save for retirement?
#2: Make Extra Contributions To Your Superannuation
Many Australians rely on their superannuation to fund their retirement. However, if you haven’t checked to see if your super is on track to fund your ideal retirement, it may be time to check and possibly make extra contributions to give it a boost.
Boosting your retirement savings through making extra contributions to your super can help get you one step closer to securing your financial future.
While your employer must be paying the super guarantee of 10% of your income to your super fund, you are entitled to ask your employer to pay more of your pre-tax income to your super. These payments are called concessional contributions and are taxed at 15%, which is usually lower than the marginal tax rate. This is known as a salary sacrifice.
However, it’s important to note that you must not exceed the concessional contribution cap of $27,500 per financial year when you combine the total of your employer and salary sacrificed contributions.
Do you have more than one Superannuation Fund?
If you have multiple super funds you may want to consider consolidating them as soon as possible to save money on fees.
If you are unsure of how many super funds you have acquired over the years, you can check through your myGov account or the ATO.
#3: Consider a Self-Managed Superannuation Fund
Many people today choose to transfer their super to a self-managed super fund (SMSF). An SMSF allows you to have more control over your retirement savings including how your super fund is managed and how to invest the balance. This option is especially suited for those who have extra money they want to invest in something more than just stocks or shares.
However, SMSFs come with substantial responsibilities. If you’re unsure about which step you must take, you may want to consider seeking an expert financial adviser who can help you make an informed decision based on your personal circumstances.
#4: Seek Tailored Advice From a Financial Adviser
When seeking expert advice from an experienced retirement planner, they can help you by providing you with the financial roadmap to achieving your retirement goals. This can include providing you with the right financial strategies to grow your nest egg and get you on the right path to securing your ideal future.
At Hyland Financial Planning, we provide you with a retirement plan tailored to your financial needs and wants in life to ensure you can achieve a retirement that is comfortable and worry-free.
Hyland Financial Planning can help you with your retirement planning
Hyland Financial Planning’s financial advisors are dedicated to forming a collaborative relationship with you. We share your desire to improve lives through strategic planning, wealth creation, and wealth success.
Through our retirement financial advice, we hope to help clients develop a sense of preparedness and stability for anything that may come their way. Seeking financial advice in Sydney or Hornsby?
Book a complimentary 15-minute call today!
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