Preparation is the Key
Planning for retirement is a big topic that covers the key decisions you need to make when looking ahead to the lifestyle that you hope to have, after you finish working. Your plans for retirement should be just a subsection of your overall financial plan. We highly recommend you build both together. Although life after work is so much more than a financial decision, it is often for financial reasons that individuals decide on a particular age for starting retirement.
For most Australians, two important considerations when planning for retirement are, the age when you can access your super benefits, and the age when you can access the Age Pension.
Knowing where you stand financially and what sort of goals you have set for your life, will make planning for retirement much easier. Your plans for retirement should be just a subsection of your overall financial plan. We highly recommend you build both together.
Ask yourself these questions
- What does it cost you to live a comfortable life?
- How can you control your costs?
- What is your risk tolerance?
- What is your cash liquidity preference?
- What type of retirement lifestyle do you want?
The important thing is to plan for the long term, not just the next 5 years.