Get Financially Set Up for Retirement

Thursday, March 19, 2020

Sorting out your finances can seem like a daunting task. But when put in simple terms, it isn’t as complicated as it sounds. Follow our coherent guide to help you ease into retirement knowing your finances are sorted.

What to Consider Before Moving into Retirement

We’ve found some of the most frequently asked questions and worked with the team at Lifepath Financial Planning to answer them for you.

How much do you need to live comfortably in retirement?

Begin by making a list of your spend on everyday living expenses like groceries, petrol, etc. Once you have a good idea about your monthly spend, multiply this for each month of the year leaving some slack for expensive festive months like December and finally multiply this amount by your estimated years in retirement. Remember it’s always best to overestimate than underestimate so that you are protected and have the freedom to live comfortably in retirement.

You might also want to consider any future travel plans and make sure to account for these. If you are planning on travelling solo we recommend checking out Solo Connections. The Solo Connection tours help over 50s travellers take on the world and avoid paying the single supplement or pairing up with a stranger.

How to lower everyday costs in retirement

Consider your driving habits and the proximity of your retirement residence to shops and other necessities. If you don’t see yourself regularly using your car, you can save plenty on registration and insurance by catching public transport which is often free for seniors during off-peak times.

For smaller expenses like groceries and clothing expenses, look out for seniors discounts. Our top tip is to get into the habit of asking whether a store has a seniors discount - chances are they could have discounts that aren’t on display.

Should you invest?

Cash liquidity is entirely your choice. If you have children, you might find that access to cash is in your best interests. Depending on your children’s dependence, you might consider investing in a less risky investment like certain stocks or to not invest at all.

The third option is to invest in a higher-risk investment, like a house or apartment. This type of investment will mean you have less immediate access to your cash but have the potential to receive better returns. We recommend speaking with one of our expert financial advisors at LifePath before making the decision to invest.

Are there any other financial concerns to consider before transitioning into retirement?

LifePath recommends adjusting superannuation phases, maximizing Centrelink benefits, wealth protection, estate planning and more to get you in excellent financial health before transitioning into a work-free lifestyle.

This sounds like a lot of work, but LifePath makes it simple - so you can start enjoying the retirement lifestyle sooner rather than later.


More Financial Advice

For any assistance ask for our trusted financial advisor Brad Monk or one of his helpful associates at LifePath today. Future-proof your finances so you can live the retirement lifestyle you have always dreamt of.