Are you financially ready for retirement?

Retiring and being ready for retirement are two very different things. It’s why many of us don’t retire when we say we’re going to, while others retire and then work out they weren’t ready after all. Here are some steps to ensure you’re ready for the retirement you want, when you want it.

1. Imagine the retirement you want

The first step in preparing for retirement is knowing the type of lifestyle you want to enjoy throughout your retirement. This will allow you to work out and plan for how much you need to maintain the lifestyle you want.

Start by writing a list of activities and experiences you’d like to enjoy in retirement (travel, dining, entertainment etc.) and then think about the things you like to have around you (new cars, latest technology, on trend and/or brand name clothes etc.). This will give you a clearer picture of the type of retirement you’d like and the income you’ll need to sustain it.

2. Take stock of your current financial position

Think about planning a road trip. You can’t map out the route you need to take without knowing where you’re starting from.

Write a list of your current income, regular expenses, super, investments, debts and insurances. This is your starting point. From here there are a lot of basic finance tips you can put in place to improve your financial position. Small things like:

  • Create a budget – understand where your money is coming from, where it’s going to and where you can spend less or spend smarter.
  • Review your regular service providers – health insurance, phones, internet, Foxtel, gas and electricity, even gym memberships. Do you need them? Are you getting a good deal?
  • Take control of debt – know what you owe and what you’re paying and make sure it’s a good deal. Whether it’s a car loan, credit card or home loan, a 1% difference in the interest rate you’re paying can save you thousands.
3. Think about income in retirement

Just because you retire it doesn’t mean you can stop thinking about income. In fact, income becomes even more important when planning your retirement because you need a plan for where it’s going to come from. 

Think back to step 1 above – how much income will you need each year to meet your desired lifestyle in retirement? Remember, most of us will be retired for 20 years or more. 

Do you have enough super to fund the retirement you want? Try our Retirement Projection Calculator to see if you’re on track.  

4. Build a plan with a professional

Regardless of whether you’re on track or not, having a personal financial plan in place will make it more likely that you’ll meet your retirement goals. 

Super has a lot of rules and they’re not always easy to follow. What seems like a simple decision today may leave you worse off when you retire.

Working with a Financial Planner means you access their knowledge and experience which could be the difference between a modest or more comfortable retirement. You could even retire earlier than you originally planned. A Financial Planner can help you:

  • Build a plan to meet your personal financial objectives and manage your transition from full time work to retirement.
  • Navigate the tax rules and legislation around contributing to super, so you can grow your super while avoiding costly mistakes.
  • Manage your retirement income by ensuring your retirement savings are invested appropriately and your assets are structured to help you maximise any government support you’re entitled to such as the Age Pension.
Get on the right path to retirement

Don’t wait till you’re closer to retirement, the best time to see a Financial Planner is right now.

With EISS Super when you meet with one of our financial planners, your first meeting is obligation free and is provided at no additional cost – it’s part of your membership entitlements.

To make an appointment, call us on 1300 369 901 (and select option 2) or visit eisuper.com.au/appointment