What is Retirement Planning?
Retirement planning is thinking about your future when you reach retirement age and planning for it now, the earlier the better, ideally n a manner where it does not affect your current day to day lifestyle needs.
Whilst you can do your own planning, if you are serious, it requires assistance of a professional as there are many different options and a lot of advertising promoting the simplicity of how it is to “do it yourself” method of planning your retirement.
For some it can work, but for many it does not work, it is not that simple and you could be missing out on advantageous strategise that could have made you retirement better.
Therefore, the objective is to know what your limitations are, seek advise, increase your knowledge of the various options available, and then act accordingly.
Always continue to learn and always continue to seek advice. The more advise, the more you learn, the more appropriate your decision will be.
Retirement is being able to do what you want to do when you want to do it without worrying about costs. This is the Utopian retirement.
Plan for this and you will succeed.
Why do I need this?
You will need to plan for your retirement simply because our Governments, in the future, will not be able to afford to provide you with the lifestyle that you are accustomed to whilst in full time employment.
You need to plan for this NOW. Seek appropriate professional advice in this area. There are many methods of creating retirement strategies that may be appropriate for you. The major vehicle, at the moment, that the Government actively promotes is, super. There are different types of super vehicles such as:
- Traditional retail funds which include Industry funds (Union based funds)
- Self Managed Super Funds (SMSF)
They all have benefits and detractions. It just depends on your particular needs, hence the need to discuss this with a professional so you can make a more informed decision.
What happens if I don’t have it?
If you don’t plan for your retirement you will be reliant in the government Age Pension which, if you don’t know, is not a very high income to live on.
As the Age pension is not a high income, you will need to ensure that you are debt free and own your own accommodation.
This in itself will not be sufficient if you are used to reasonable lifestyle.
I encourage you to do research on retirement needs, and at the same time, think about what you believe you will require in retirement. I guarantee one answer that you will come up with, is that you will not have enough to live on with the Age Pension.
What will the cost be to me?
The cost to you is twofold:
What will the cost be if I don’t plan for my retirement? It’s the intangible cost of a potential life that you are not accustomed to, that you may not like. That can be a very frightening option, especially if you live to the current average life expectancy age of 85 – 90.
What will the cost of advice and management of my retirement strategy planning be and is it worth it? Yes it will be worth it, as long as you choose your Financial Adviser/Planner wisely.
The costs will vary depending on the range of services that you require from your Financial Adviser. These costs will be based on a time based service charged at an hourly rate i.e. you may require regular ongoing service or you may require an ad hoc service when required.
Once again, if you are looking for appropriate advice in this area please click below and we will be in contact with you within 24 hours.