Director |Certified Financial Planner | Aged Care Professional
Becoming financially equipped for your retirement is entirely in your control. If retirement is not on the horizon for you just yet, it doesn’t mean that you shouldn’t be preparing for it.
The right mindset, attitude, advice and preparation for retirement will definitely increase your ability to enjoy a comfortable retirement later on.
So how do you prepare and take full control of this?
Here are a few great tips to jumpstart your way to successful retirement living:
- Save, save, save more!
Allocate money accordingly and ensure you have savings. Avoid unnecessary purchases and limit your credit card use. Think before doing any shopping and only buy those things you would actually need. Don’t be an impulsive buyer. Remember, everything should be in moderation.
- Aim to set aside contributions into your retirement accounts
There are various ways of making tax effective contributions to your superannuation. Also, be mindful to cut costs by consolidating your superannuation accounts.
- Reduce debt!
Borrowing money should be okay if it falls under the ‘good debt’ category.
Good debt is defined as a “borrowed amount” that is used for investment purposes or that shall help to generate long term income. Keep in mind that debts are liabilities and must be kept to a minimum. No one wants debt in retirement.
- Make a rough estimate of your Retirement expenditure
Think about what type of retirement lifestyle you want. What specific retirement activities do you want to take part of.
Do you plan to travel the world, engage in certain group memberships showcasing your hobbies, venture into a new business or simply enjoy gardening at home?
They key is to know what you want to do so that you can make an estimate of how much money would be needed to fulfill these plans.
- Decide where to live when you retire
Living arrangements will make a huge impact on your budget. Choose your options as early as you can so the proper expectations and preparations can be made. It will also give you a sense of fulfillment when you are able to make this decision for yourself rather than having a relative or family member do this on your behalf.
Being in control and well prepared for this stage of life will help you achieve a comfortable retirement.
For tailored advice, please feel free to connect with us at www.verante.com.au