The one thing we all seem to be working towards in life is retirement. We give up the best years of our lives to work, all for putting money away so we can eventually relax. Depending on when you plan on retiring, your savings plan will vary quite drastically. The real question you must ask is how much to retire at 65, 70, 75, or even older.
As our average lifespans are increasing, the average age of retirement seems to be increasing along with it. If you want to retire at 65, you need to start planning as soon as possible, as every single penny is going to count. With the right plan in place and strict financial responsibility, you will be able to save enough to retire.
Let’s take a look at some simple strategies that will help you to save for your retirement.
Review Your Nest Egg
After decades of hard work, and retirement age approaching, now’s the time to review the fruits of your labor and confirm you’re on track to reach your financial goals. Many large super funds provide members with a retirement estimate or have a calculator that can give you a rough figure. The next step is to compare this figure with how much you think it will cost to support yourself financially when you retire at 65. Think about day to day expenses, but also the long term costs, like if you’re planning to finally take a trip to Italy or buy that vintage car you’ve always wanted. If there’s still quite a gap between these two figures, there’s still time to take action and reconcile them. Reviewing your nest egg might also be the right moment to explore other investment options or revenue streams that could bolster your income in retirement. Engage with a trusted financial advisor if needed, because planning for your golden years is not just about surviving, but also about fulfilling dreams and living comfortably.
Have A Final Debt Elimination Strategy
That leads into our second retirement saving strategy: eliminating debt. The last thing you want to have to look forward to in retirement is to have a bunch of debt to pay off. In your final years of working, it is essential that you have a plan to take care of any remaining debt. You may have to balance your savings and debt payments a little more, but it will certainly be worth it in the long run. Starting retirement debt-free is essential to make sure you have enough savings to live a comfortable life later on. It doesn’t hurt to have a report run to see if you have any outstanding debts that were forgotten about. The last thing you want is the debt collectors calling when you are living off of a very fixed income in retirement.
Consider When & How You’ll Receive Your Super
Having a clear idea of when you’ll and how you can access your superannuation is an essential step in preparing for retirement. As you may already know, you might be able to start dipping into your super savings while you’re still in your 50s. However, there are a couple of things to keep in mind. One is that you must have hit your preservation age, which varies depending on when you were born, and the other is that you need to fulfill a certain condition of release. Now is the time to start finding out these details so you put the proper financial steps in place. And as you edge closer to your well-earned retirement, it’s smart to start considering how you’d like to use your super benefit – maybe a one-off lump sum, regular income payments, or a mix of the two. This way, you can tailor a plan that suits your individual needs and figure out any extra steps you might need to take in the final stretch of your working years.
Track And Claim All Pensions
If you have worked multiple jobs over the years, particularly ones with industry recommended super funds, your 50’s and 60’s is the time to consolidate. Make sure you take the time to track and claim all pensions that you earned over your working life to date, as it can quickly add up to a nice chunk of change. There are services available to help locate this information, but a good place to start is on the searching for lost super page on the Australian Taxation Office website. It can be difficult to keep track of all of everything but with the right assistance, you can ensure you have everything lined up correctly.
Don’t Forget About Your Mental Health
When budgeting for health expenses during retirement, the first thing most people think of is physical illness or injury. However, as today’s generation has shown us, looking after your mental health is an essential part of taking care of yourself. With that being said, make sure to have money aside to help with anything that may come up. Allocate funds for activities that promote wellness such as yoga, meditation, or even gardening. Consider taking part in community activities or volunteering, as social engagement often plays a crucial role in maintaining mental health. Always remember, mental wellness isn’t a luxury, but a necessity. With a well-planned budget dedicated to mental health, you’ll be more equipped to experience a fulfilling and joyful retirement.
Plan To Enjoy Retirement With Money In The Bank
We never know what is going to happen from one day to the next, which really makes enjoying each day that much more important. Whatever you do to plan for your retirement, make sure your plans ensure happiness and fulfilment. These are your golden years, and having the right retirement savings plan is going to ensure they are also the best years of your life. It is never too early, or too late, to start saving, and every cent you can put away will help you to enjoy your retirement to the fullest.