With better health and medical advances, you are likely to live longer and this means you’ll need to start preparing for a retirement marathon, rather than a sprint. Whatever your plans, it’s vital you have strategies in place to build your retirement savings as much as you can before you retire.
Decide on your lifestyle
Up until now you may have been focused on your immediate needs, with mortgage payments or rent combined with family needs and work pressures being your biggest worries. But you need to start thinking about how you want to live for the next 30 years or more in retirement. What’s important to you? Do you want that annual European holiday or camping trip at Frasier Island? Are you happy with home cooked meals or appreciate a fine dining experience?
Figure out how much you need
Once you have decided on the lifestyle you want to live, you will need to set up plans to work towards and eventually achieve this. There are a few things you can look at now, in the lead up to retirement, to ensure you are on the right track:
Superannuation – is your super invested appropriately? Do you need to contribute more now so that you have enough for the future?
Investments – if you have managed funds, shares or property, are they invested strategically to help accommodate your changing lifestyle?
Insurance – do you have the right level of life and income insurance? Are you and your family covered if anything happens?
Daily finances – are you spending money on things you don’t use? If the kids have moved out, are there ways you can scale back?
Reach the finish line
You might find that you are further behind the pack than you first thought for your ideal retirement lifestyle. This happens to a lot of people but it is never too late to reach for the finish and make a change. You could be at the peak of your earning potential, just repaid your mortgage, or might not be aware of strategies currently available to you. Whatever the case there are ways to give you a chance to save more and make up lost ground.
Need a coach?
Everyone’s financial needs and goals are different so it’s worthwhile seeking professional financial advice before you make important financial decisions. A financial adviser can coach you with strategies and work with you to help make your ideal lifestyle a reality, both now and well into the retirement marathon.
Disclaimer
This information is current as at 11/10/17 This article has been prepared by Heart1Stop, a social media brand owned by Heart Mortgage Services and Heart Financial Advisers. The information contained in this article is an overview or summary only and it should not be considered a comprehensive statement on any matter nor relied upon as such. The views expressed here are not those of Heart1stop, Heart Mortgage Services, Heart Financial Advisers, shareholders, directors or staff and associated contractors and business associates. This article has been prepared without taking into account any person’s objectives, financial situation or needs. Because of this, you should, before acting on any information contained in this article, consider its appropriateness, having regard to your objectives, financial situation or needs. Any taxation information contained in this article is a general statement and should only be used as a guide. It does not constitute taxation advice and is based on current laws and their interpretation. Each individual’s situation may differ, and you should seek independent professional taxation advice on any taxation matters. While the information contained in this article may contain or be based on information obtained from sources believed to be reliable, it may not have been independently verified. Where information contained in this publication contains material provided directly by third parties it is given in good faith and has been derived from sources believed to be accurate at its issue date. It is not the intention of Heart1Stop or Heart Mortgage Services and Heart Financial Advisers that this publication be used as the primary source of readers’ information but as an adjunct to their own resources and training. To the maximum extent permitted by law: no guarantee, representation or warranty is given that any information or advice in this publication is complete, accurate, up to date or fit for any purpose; and no party of Heart1Stop or associated entities as mentioned is in any way liable to you (including for negligence) in respect of any reliance upon such information. This article may also contain links to websites operated by third parties ("Third Parties") who are not related to Heart1Stop. These links are provided for convenience only and do not represent any endorsement or approval by us.
