While many people think their retirement is all taken care of with their superannuation, the past five years have forced many Baby Boomers to work past their desired retirement age to make up for funds lost in a volatile financial market.
While superannuation provides funds once our working years are over, it’s important to consider how much money is needed per year to live comfortably and if your super will cover this – in a lot of cases, it just isn’t enough.
Australians often leave planning for their retirement until it’s too late, either forcing them to remain in the workforce for longer to boost their bank balance, sell assets such as their family home, or make considerable compromises when it comes to their lifestyle.
Being well prepared for your retirement, even if it is still a while away, is a good idea and will assist in less stress as your life changes down the track. Here are some helpful tips on how to prepare your nest egg for the golden years:
- Start planning your retirement finances in your early forties: that way you have time to build your assets and ride out any market volatility that may occur
- Speak to a financial planner about your goals and objectives: they will then work with you to develop a plan to reach your financial goals, taking into consideration your personal situation and your risk tolerance for investment portfolios
- Diversify your investments: try to spread your wealth across cash, property, shares and managed funds to gain a mix of growth and stability
- Consider adding income: generating investments (such as investment properties, term deposits or high-yielding shares) to your portfolio, to help provide a regular income once you stop working; and
- Reassess your finances once a year to make sure you are comfortable with your investments and your arrangements still meet your needs.
Following these steps will give you peace of mind that your hard-earned money is in safe hands, and you can enjoy retirement to the fullest without compromising your lifestyle. After all, this is the time you have worked towards for decades, you deserve to make it the best it can be.
Michael – Eastwoods Wealth Management Administration Manager
General Advice Warning: This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information. Investment Performance: Past performance is not a reliable guide to future returns as future returns may differ from and be more or less volatile than past returns.