Saving for retirement is not something to worry about “down the track”. You should think about building your savings for retirement as soon as you start earning. The sooner you start planning for your retirement, the greater the range of options you have available in creating a plan that suits you. A good retirement plan helps you get your assets and savings sorted so that you can meet your retirement goals.
When building for retirement it is important to know the answers to the following three questions.
- What assets do you have and how much are they worth?
- How much super do you have and when can it become accessible?
- What age can you apply for the age pension?
We can help you to access the answers to these questions and provide you with the assistance you need to build a fruitful retirement fund. Check the following tips to give your retirement fund the best possible start.
Tips for building retirement
1. Get Help as Soon as possible
Managing finances can be complicated even if you have a good understanding of your own financial situation. Seek guidance on investment strategies and help with tax effective financial plans. We can explain different investment strategies, including the risks and the long-term returns you can expect.
Managing your spending is the simplest way to ensure that your money lasts as long as possible. We can assist you in working out a functional budget that can allow you to indulge every now and again.
3. Work as long as possible
By working for as long as you possibly can, you can leave your savings intact and continue to add to your superannuation.
4. Have a range of investments
A diversified portfolio reduces risk due to the spread of investments across sectors. A sound diversified portfolio will include property and shares, as they are assets that will increase in value over a period of time as well as paying dividends along the way.
5. Making your retirement fund go further
When you retire you are able to get paid the total amount you have saved in your superannuation – or you can choose to divide that amount into specific types of payments.
- Lump Sum – Get your super paid out as a lump sum.
- You generally pay no taxes on lump sum withdrawals if you are aged 60 or over. Lump sum payments can be a good choice if you want to reinvest the money quickly or pay off any remaining balance of your home loan
- Regular income stream – Get paid from your super in regular payments
- Choose payments of almost any size and vary them as you need. You can manage payment size for tax advantages
6. Assess the Risk
Risk management is a crucial principle. You must ensure that your investments are managed prudently to avoid the impacts of market shocks. Many people have suffered in the past when they have sought to retire due to a market downturn in either shares or property at the time that they wanted to retire. Smart planning would have moved investments towards more cash style investments closer to retirement to reduce risk. When making an investment with your retirement money, contact us to help you ensure you have adequately assessed the risks.
7. Make your money hard to touch
It can be difficult to resist dipping into savings to spend. Aim to never borrow money to fund your current lifestyle. By building an investment strategy suitable for your goals, it can create forced saving for your financial future.
8. Take advantage of your entitlements
You might be eligible for other benefits in addition to the age pension. These include travel concessions, cheaper medicines, and reduced council and water rates. The senior’s card also provides discounts on travel and some retail services.
Retirement planning takes a lot of expertise and long-term consideration. It is easy enough to understand how to build your retirement fund but putting it into practice can be far more difficult. Contact us to help bridge the gap between knowing what to do and actually doing it.
This article has been prepared by Ian Moiler Pty Ltd trading as Manoeuvre Wealth ABN 22 097 374 420, an Authorised Representative of Count Financial Limited ABN 19 001 974 625; AFSL 227232, (“Count”) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. Count’ and Count Wealth Accountants® are trading names of Count. Count advisers are authorised representatives of Count.
The information in this article is for general information only. The article has been prepared without taking into account your personal objectives, financial situation or needs. You should assess whether the information is appropriate for your needs and consider talking to a Count Authorised Representative before making any investment decision. The relevant PDS should be considered before making a decision about any financial product. 31 May 2017.