Planning your upcoming retirement?
You’ve been working throughout of your life, saving, and building your super so that you can enjoy life more when you stop working.
Depending on when you stop working, you might be retired for 20 years or more. So it is important to consider what your retirement expenses will be.
Everyone’s lifestyle will be different but here are a few things to consider:
- Housing: do you own your own house or rent? Think about what this will cost in the future. Are there renovations or upkeep expenses that you should factor in? You might consider downsizing if the family home is no longer suitable.
- Children and family: do you plan to offer additional financial support.
- Health and wellbeing: you might need to set aside more money for medical expenses, medical insurance and preventative health checks.
- Car: consider maintenance costs for your car. Will you need a new car in the next 10–20 years? What is the cost of your car maintenance?
- Daily travel expenses: if you’re not travelling to and from work every day, you might find you save on public transport and parking costs.
- Other expenses: will you have money set aside to cover unforeseen expenses and emergencies? What won’t you need anymore?
- Hobbies: you may already have some, or you might use your spare time to learn something new. Hobbies are a great way to keep in touch with friends and meet new people.
- Travel: You might want to do the big lap around the country, or explore the world.
- Activities with family and friends: social outings are a big part of most people’s lives. You might find you’re busier than ever once you’ve got more downtime.
- Volunteer: many retirees find volunteer work a rewarding way to use their spare time.
- Working part-time: you might prefer to keep working, or to start a new or different job once you’ve retired.
Most retirees receive income from at least a couple of sources. These may include the money in your super account and also investments outside super. The money you live on in retirement may also include some kind of pension payment or allowance from the Government.
The challenge is, many people find that even if they’re eligible for the Government Age Pension, it may not be quite enough to live comfortably.
One option is to use your super to top up any Age Pension payments that you’re eligible for. This will give you more income to cover your retirement expenses.
To book a complimentary ten minute phone consultation with Cameron Teague, our Certified Financial Planner, click on the link below.
