Everyone wants a comfortable retirement, but the definition of comfort may vary from one person to the other. Your ideal retirement may involve relaxing by the beach, travelling overseas or finally starting that new hobby you’ve always wanted to try!
No matter what your ideal retirement is, it is essential to look ahead and work on attaining it through early retirement planning. By determining your retirement goals, you can figure out which goals to prioritise and how much money you need to save.
Here are four key retirement goals to think about that can help you with your retirement planning:
Your cash flow goal should account for the necessary expenses such as food, clothing, bill payments, and healthcare.
Once you retire, you won’t have your regular income coming from your salary to pay for these expenses which can be a shock to the budget if you haven’t prepared for it.
Your retirement income may come from various sources such as:
Your Superannuation
Investments
Age Pension
It’s wise to map out exactly how much you can expect to earn from each of these sources so you can be sure it will cover your retirement expenses.
You are not safe from surprise expenses once you start retirement.
Having emergency savings can help protect the rest of your retirement savings if you need to pay for sudden expenses such as car repairs, home repairs, medical expenses or anything unexpected that you may not account for in your everyday expenses.
A good target for your emergency fund is to have enough to cover three months of expenses.
This gives you time to plan ahead without having to stress about income.
For most people, retirement is a time when you have the time to enjoy hobbies, luxurious outings, or holiday getaways.
It’s important to factor these expenses into your retirement plan rather than just your living expenses. Whether that’s an occasional dinner outing at your favourite restaurant or a round the world trip. The possibilities are endless!
Like your necessary expenses, this is also part of your cash flow goal, so you may want to prepare by setting aside a few dollars from various income sources.
As you retire, you may want to consider planning on leaving your wealth to those you love or maybe charities you advocate for.
When you plan on leaving a legacy behind, it’s important to establish clear instructions on who it will go to. This can be easily done by developing an effective estate plan. If you’re not sure what estate planning includes, check out our article on the importance of estate planning.
Your legacy is not limited to financial ways either. Your retirement is a time where you get to choose what you want to do and how you spend your time with family.
Once you have sorted out your goals, you can take steps into attaining them. Here are some tips to make these goals more accessible:
Budget your spending, so you spend less than you earn and can save for your retirement goals. Prioritise your savings first so you can achieve financial independence sooner.
Retirement Planning: Start on your retirement savings and retirement investing early. This allows your money to work for you through annual compounding.
Maximise your retirement savings through super contributions.
Stay focused on your goal and avoid spending the money you are saving for your retirement.
Seek financial planning in Bowral to help you perfect your retirement plan.
The first step in achieving a comfortable retirement is determining your retirement goals and working towards attaining these goals. No matter what your specific ideals are for a comfortable retirement, these can be broken down into four key goals you can start planning for.
Are you looking for retirement financial advice in Bowral in the Southern Highlands region? At Poole Advisory, we can help you plan, protect, and grow your retirement savings and investments.
Book an appointment today to learn more!
This information contains general advice only, that is, advice which does not take into account your needs, objectives, or financial situation. You need to consider the appropriateness of that general advice in light of your personal circumstances before acting on the advice. You should obtain and consider the Product Disclosure Statement for any product discussed before making a decision to acquire that product. You should obtain financial or credit advice that addresses your specific needs and situation before making investment or borrowing decisions. Taxation information is based on our interpretation of the relevant laws as at 1 July 2018. While every care has been taken in the preparation of this information, Prosperitas Partners Pty Ltd does not guarantee the accuracy or completeness of the information. The case studies are hypothetical, for illustration purposes only and are not based on actual returns
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