Countdown to Retirement: Tips to Help Kickstart Your Retirement Plans

Retirement is a significant phase of life that everyone looks forward to. It is that time of life when you can finally put your feet up and relax after years of hard work.

But are you prepared for it?

Do you have a retirement plan in place? According to a report, nearly 37% of Australians believe that they are not financially ready for retirement. Are you one of them?

If yes, don't worry; we have got you covered. In this article, we will provide you with tips to help kickstart your retirement plans in Australia.

Firstly, to have a successful retirement, you need to start planning early. Waiting until the last minute is never a good idea.

One of the things you can do is work with a financial advisor who can guide you through the process.

Would you like to speak to a specialist? Book a complimentary discovery session by calling: (03)999 81940 or emailing team@klearpicture.com.au.

Secondly, it is crucial to have a clear understanding of your retirement goals.

This can include where you want to live, how you want to spend your time, and what kind of lifestyle you want. Lastly, you should always have a contingency plan in place if things don't go as planned.

If you are looking for more tips on how to prepare for retirement, you have come to the right place. In this article, we will dive deeper into the topic and provide you with valuable insights and expert advice on how to kickstart your retirement plans in Australia.

We have consulted some of the leading financial experts in the country to ensure that you get the most accurate and trustworthy information. So, without any further ado, let's get started!

Are You Ready for Retirement?

If you take the philosophy that life is what occurs while you're busy arranging other things, then retirement is no different. It's possible that you'll have to say goodbye to your working life before you're good and ready because of family commitments, health problems, or being made redundant.

When it comes to putting your strategies for retirement into action, your health, money, and joy should all be at the top of your priority list of things to consider about.

This section is all about the factors to consider when preparing for life outside of the typical 9 to 5 workday, covering anything from finances to sentiments regarding quitting work.

Ready for a Change?

Having a job can be about more than just making money. When your coworkers and your career mean more to you than the money, it can be difficult to let go of a job.

If you anticipate that retirement will leave a significant void in your life, making plans for new routines, rewards, and friendships will improve your sense of optimism and overall sense of well-being.

Give this some thought in advance and even go so far as to take some action to investigate your possibilities.

You can get the feeling that you are trading a positive aspect of your working life for something even more enjoyable.

Kickstart Your Retirement Plans in Australia

Planning for retirement is an important aspect of our lives that demands thoughtful deliberation and organisation on our part. To assist its residents in making preparations for the future, Australia provides a number of pension programmes and other benefits. The following are some suggestions that can assist you in getting your plans for retirement in Australia off the ground:

• Get an Early Start: It is in your best interest to begin saving for retirement as soon as possible. To begin, select a part of your earnings and place it in a savings account designated for your retirement. This will make it possible for you to accumulate a big nest egg for your retirement over the course of time.

• Take Benefit of Superannuation: Superannuation, also known as the Australian Government's Superannuation Scheme, is a retirement savings plan that businesses are required to contribute to on behalf of their employees. Superannuation is a government-mandated retirement savings plan. Be sure that you are getting the most out of this benefit and contributing the utmost amount that the law permits you to.

• Diversify Your Investments If you want to lessen the likelihood of incurring a loss from your investment portfolio, diversification is a must. If you want to build a portfolio that is well diversified, you should think about investing in a variety of assets, such as stocks, bonds, and other assets.

• Think About Downsizing As you get closer to retirement, you might want to think about reducing the size of your home so that you can save money and make more money. This can free up funds that can then be invested in your retirement fund, which can provide for a more comfortable lifestyle once you reach retirement age.

• Consult with a Professional: A consultation with a financial planner can provide helpful insights and assist you in making decisions regarding your retirement plans that are based on accurate information. They are also able to assist in the creation of a bespoke retirement plan that is tailored to your requirements and objectives.

Do You Still Have Ten to Fifteen Years Left Before You Retire?

It is critical to begin preparing your money and making preparations for retirement as soon as possible, even if retirement is still many years away. The following are some points to think about:

1. Finances

• Start formulating a strategy for how you will pay for your retirement right away.
• Choose a ballpark figure for when you will stop working.
• Do research into the annual expense of the retirement lifestyle you envision for yourself. Find out more information regarding the expense of living during retirement.
• Consider whether or not you will still be able to provide financial assistance to your children or your parents.
• Think about getting some advice from a financial professional.

2. Lifestyle/activities

• Think about how you'd like to spend your time when you are no longer working.
• Make a list of certain personal and financial objectives you'd like to accomplish.
• Consider what kinds of trips you are interested in taking, if any, and how frequently you are interested in taking them.
• Examine your pastimes and think about the amount of time you want to be able to spend on each of them after you reach retirement age.
• Consider whether you would like to participate in any activities, such as golf or bushwalking, once you are retired.
• Consider participating in any community activities that interest you, such as volunteering or working for a charitable organisation.
• Determine whether your current job offers any opportunities for you to acquire new talents that you could later put to use in your retirement career.

3. Family

• Think about where you would like to live after you retire, such as the area you currently live in, the coast, or perhaps another country. Find out more about how location affects the amount of money spent during retirement.
• Consider how your family situation, such as having a second family with young children, can impact your preparations for retirement. One example of this is if you have a stepfamily.

4. Administration

• Verify to see that you have a valid death benefit nomination in place for your super account.
• Make sure you have a legal will and choose someone to carry it out.
• Put together an enduring power of attorney (EPOA) and a health care directive in ahead.

Have You Still Got Five to Ten Years Left Before You Retire?

Even if retirement is still some time away, now is the time to get real about your goals and make sure that your funds are in order. Now is the time to beef up your retirement savings and give some serious consideration to how you would like to spend your time once you have retired.

The following are some points to think about:

1. Finances

• Ensure that you are still on the right track with your financial goals for retirement by giving them a once-over.
• Examine the date that you have set aside for your retirement and think about whether or not it is still appropriate for you in light of your current situation.
• Determine when you will be able to access your superannuation, as well as the financial and tax implications of retiring at various ages.
• Consider how much money you will need to fund your projected retirement from your superannuation as well as investments from other sources.
• Compute your potential retirement savings at your desired retirement date.
• Examine the options available to you in order to bridge the gap between the amount of money you anticipate needing in retirement and the amount of money you expect to have saved by the time you stop working, such as increasing the amount of money you put away each month or working for a longer period of time.
• Find out more about how you can save for retirement in addition to your super.
• Consider all of your financial obligations, including your mortgage, and calculate how much you need to pay off before you can retire without carrying any outstanding debt.
• Determine whether or not you will be qualified to get assistance from the Age Pension.
• Research any alternative forms of retirement support that the government may offer.

2. Lifestyle/activities

• Experiment with new pursuits outside of work to build a network of friends and contacts with whom you can maintain a social life when you stop working.
• Think about whether or not you possess any abilities that could be put to use once you retire to bring in additional money if you find that you require it.

3. Family

• Consider reevaluating your goals about the location of the home you will occupy after you retire.
• If you are thinking of moving, you should look into several areas.
• Have a conversation about retirement with your partner, and make sure you both agree on when you want to retire and the lifestyle you want to lead afterwards.
• Have a conversation about how the two of you want to enjoy your retirement years together, as well as the amount of time you would like to spend together.

4. Administration

• Consider revising your nomination for the death benefit on your super account.
• Make sure your will is up to date if there have been any major changes in your family, such as a separation or divorce.

Have You Got One to Two Years Left Before You Retire?

Now is the time to review your retirement strategies and make sure that you have all you need to have a successful transition into retirement. The following are a few factors to take into consideration:

1. Finances

• Check to see if your financial plan is still relevant by going through it again.
• Develop a balance sheet listing all of your assets, such as your personal savings and retirement accounts, as well as all of your debts, and then do an inventory of your present financial condition.
• Determine the amount of financial assistance you could get from the Age Pension.
• Calculate what your potential total annual income will be once you retire, taking into account any income you might receive from investments like a rental property.
• Examine your intended retirement date. Determine whether you will still have the financial means to retire at that time or whether you are going to continue working for a while longer.
• Create a preliminary spending plan for your retirement years, taking into account expenses such as regular bills, holidays, house upkeep, and healthcare costs.
• You may get an idea of how much the typical retiree spends on things like food, clothing, and household goods by looking at the ASFA Retirement Standard, which can be found here.
• Take into consideration having a conversation with a financial adviser if it becomes required.

2. Lifestyle/activities

• Join some local organisations or become involved in volunteer work if you want to broaden your social circle and make new acquaintances outside of the workplace.
• Consider the ways in which you intend to keep your body and mind busy throughout your retirement years.
• Explore the possibilities for furthering your knowledge, such as enrolling at the University of the Third Age or taking some short courses.

3. Employment

• Consider whether you continue to desire to accomplish any of the work goals you've set for yourself.
• Think about whether you want to retire entirely or keep working part-time for a little longer.
• Have a conversation with your employer about your goals for retirement.
• Before you retire for good, give some thought to whether or not you want to take a long-service, yearly, or even lengthy unpaid leave.
• Keep any abilities you could need to generate extra money in retirement current, just in case you might need it.

4. Family

• Think about whether or not the home you currently live in is fit for the lifestyle you plan to lead once you retire and whether or not you will require additional room.
• Examine your property to determine whether it requires any significant upkeep or repairs.
• Consider whether it is financially feasible for you to start the restoration or maintenance activities while you possess a steady income.
• Evaluate whether or not it is necessary to replace your vehicle, and think about the optimal moment to do so.
• Collect details about any trips you intend to take during your retirement.

Only Six Months Left Until Retirement?

Now is the moment to actually put your strategies into effect because things have reached a point where they cannot be ignored any longer. The following are some factors to take into consideration:

1. Finances

• Take some time to go through the specifics of your financial plan.
• Get a retirement prediction from your super fund.
• You should look for any missing super and think about adding it to the account you already have if you can.
• Examine the life insurance coverage that is given by your retirement fund.
• Make a decision regarding what you will do with the savings you have accumulated in your superannuation account, such as rolling them over into a super pension, withdrawing them and investing them, or purchasing an annuity.
• Consider the various investment opportunities available for your super pension.
• Investigate the possibility of needing to produce more income through the use of solutions such as a reverse mortgage.

2. Lifestyle/activities

• Have a conversation with your family or partner about the date you plan to retire to see if it is still appropriate.
• Put up a regular fitness routine so you can proceed into retirement.
• Have a detailed plan for how much money you will spend during retirement, and check that your partner is on board with it.
• Get a complete physical examination.

3. Administration

• Keep your will up to date and make it a habit to look it over on a frequent basis when you are retired.
• If you do not already have a durable power of attorney and a health care directive on file, you should create one and get one.
• Consider conducting a policy review for your health insurance.

You Only Have Three Months Left Before You Retire?

You are about to embark on a new chapter of your life, therefore now is the time to set your plans into motion:

• Get in touch with your super fund to figure out how you can access the money in your account.
• You have up to three months before you retire to submit your request for the Age Pension so that you can begin receiving payments as soon as you become eligible.
• Make an application for a Seniors Health Card through the Commonwealth.
• Check to see whether you qualify for any other services or advantages offered by the government.
• Join up for the Seniors Card offered by your state to receive discounts on the costs of shopping, travel, and entertainment.
• Examine the savings opportunities provided by the government of your state (e.g. gas and electricity rebates, licence concessions).

How Long Will You Live in Australia After Retirement?

A person's retirement is an important life milestone since it signifies the end of their working years and the start of an entirely new chapter in which they can enjoy more leisure time and less stress.

In Australia, retirement is a privilege that must be earned, and as a result, many people look forwards to enjoying it. But how long should someone anticipate being in retirement, and what elements play a role in determining this?

1. Factors Affecting the Length of Retirement in Australia

In Australia, the length of one's retirement is determined by a number of different criteria. Life expectancy, retirement age, current health status, current marital status, and current financial circumstances are among the most important of these factors.

1. Life Expectancy

One of the most important aspects that play a role in determining how long one can enjoy retirement is one's life expectancy. Life expectancy in Australia is at an all-time high of 83 years, making it one of the countries with the longest life spans in the world.

This indicates that retirees can anticipate enjoying their golden years for a longer period of time than earlier generations did.

Would you like to speak to Klear Picture retirement specialist? Book a discovery session by calling: (03)99981940 or email on team@klearpicture.com.au.

2. Retirement Age

There is also a correlation between the age of retirement and the duration of said retirement.

The age of retirement in Australia is currently set at 66 years and six months. People who retire at an early age will enjoy a longer retirement than those who wait till later in life to do so; conversely, those who retire later will experience a shorter retirement.

3. Health Status

The retiree's current state of health is another essential component that plays a role in establishing the duration of their golden years.

Healthy retirees might anticipate enjoying their golden years for a longer period of time. However, those who struggle with various health conditions may find that their golden years are cut shorter.

4. Marital Status

The number of years spent in retirement might also be affected by marital status. It is common for retirees who are married to enjoy a lengthier period of time spent in retirement than single retirees.

This is due to the fact that married couples typically have greater wages, which gives them the opportunity to put away more money for retirement.

5. Financial Situation

The extent of one's financial stability is possibly the single most important aspect that plays into the total time spent in retirement. People with more money set aside for retirement will be able to retire sooner and enjoy their golden years for a longer period of time.

On the other hand, individuals who haven't set aside enough money for retirement might have to continue working for a longer period of time and enjoy a shorter retirement.

2. How to Estimate Your Retirement Length

When it comes to retirement planning, having an accurate estimate of how long you will be retired is vital. This can be accomplished in a variety of ways, such as with the assistance of retirement calculators, financial advisers, or tools provided by the government.

1. Retirement Calculators

Calculators for retirement are tools that can assist you in estimating the length of your retirement depending on your existing savings, the returns on your investments, and other relevant criteria.

There is a plethora of retirement planning software that can be found online and is offered for free usage.

2. Financial Planners

Planners of finances can also assist you in calculating how long your retirement will last.

They will evaluate your current financial condition, make suggestions for how you may save more money for retirement, and work with you to formulate a strategy for your retirement.

3. Government Resources

You can estimate how long you will be able to enjoy retirement thanks to the materials provided by the Australian government. The MoneySmart Retirement Planner and the MyGov Retirement Income Estimator are two examples of these kinds of tools.

The Right Choice for Your Health

No matter how much you enjoy your work or how much you look forwards to retirement, your health may force you to make a decision.

When it comes to dealing with health issues, early retirement can end up being the only choice offered to you, but that will rely on the kind of work you do.

It is possible that this will also be the case if you require additional time to provide care for a partner who is ill. So, it is not surprising that the Australian Bureau of Statistics (ABS) lists concerns about one's own health as the second most popular cause of retirement.

When it came to deciding when to retire, work availability or health concerns influenced the decision for fifty per cent of Australians.

Prepared Monetarily to Enjoy Retirement

The same ABS findings show that wealth is even more popular than health as a cause for making the shift into retirement when it comes to causes for deciding to retire. 41% of men and 34% of women responded that feeling financially secure was the factor that had the most impact on their choice.

You can gain the confidence that you need to make the transition to retirement by determining what your expenses will be and where the cash for those expenses will come from before you retire.

Is There the Possibility of Working Part-Time?

Maintaining a familiar pattern and extending the life of one's retirement savings can be accomplished by continuing to earn an income after the traditional retirement age.

If you are qualified for the Age Pension, it is important to be aware that you can continue to work and earn some money without having your payments reduced to a particular amount.

This level is referred to as the income test threshold. There is also something called the Work Bonus, which enables you to keep more of the money you earn beyond a specific threshold than you would otherwise lose from your Age Pension.

In addition, if you stop working for a while, you can let your Work Bonus balance grow, which will allow you to make more money once you return to your job.

Expectation vs Reality

It is common for the time at which a person plans to retire and the moment at which they actually do retire to be considerably different. According to data provided by the ABS, seventy per cent of people who want to leave their jobs at some point said that they would do so after reaching the age of 65.

But, despite the fact that you may be willing to remain working long into your 60s, there is a considerable gap between the expectation that you have and the reality of the situation.

It is more prevalent for individuals to be forced into retirement by circumstances than to make the decision to retire as a result of serious consideration and planning.

If we look at when individuals are really retiring, we discover that the median age at retirement for those who have retired within the past five years was slightly under 63.

Because of health problems or being made redundant, nearly half of all people living in Australia are entering retirement years earlier than they had planned.

Bottom Line

To summarise, preparing for retirement is an essential part of our life that needs careful planning in order for us to be able to enjoy our golden years without the stress of being concerned about money issues.

You will be able to get a head start on your preparations for retirement in Australia and establish a solid foundation for your own financial future if you follow the advice that is provided in this article.

Don't put off starting to plan for your retirement until it's too late; get the ball rolling right now.

Keep in mind that the earlier you start saving for retirement, the more time you will have to both build up your savings and make the required adjustments.

You may accomplish your retirement goals and start living the life you deserve if you have the appropriate mentality and practice discipline.

Are you prepared to get the ball rolling on your retirement planning? How many more years do you have to work until you can retire? What actions are you taking to ensure a prosperous future for yourself financially?

Please leave your opinions in the comment section below, and together, let's work to make our retirement dreams come true!

Would you like to speak to a specialist? Book a complimentary discovery session by calling: (03)999 81940 or emailing team@klearpicture.com.au.

Content Summary

• According to a report, nearly 37% of Australians believe that they are not financially ready for retirement.
• One of the things you can do is work with a financial advisor who can guide you through the process.
• When your coworkers and your career mean more to you than the money, it can be difficult to let go of a job.
• Planning for retirement is an important aspect of our lives that demands thoughtful deliberation and organisation on our part.
• A consultation with a financial planner can provide helpful insights and assist you in making decisions regarding your retirement plans that are based on accurate information.
• Start formulating a strategy for how you will pay for your retirement right away.
• Consider how your family situation, such as having a second family with young children, can impact your preparations for retirement.
• Verify to see that you have a valid death benefit nomination in place for your super account.
• Now is the time to beef up your retirement savings and give some serious consideration to how you would like to spend your time once you have retired.
• Ensure that you are still on the right track with your financial goals for retirement by giving them a once-over.
• Compute your potential retirement savings at your desired retirement date.
• Consider reevaluating your goals about the location of the home you will occupy after you retire.
• Have a conversation about retirement with your partner, and make sure you both agree on when you want to retire and the lifestyle you want to lead afterwards.
• Make sure your will is up to date if there have been any major changes in your family, such as a separation or divorce.
• Now is the time to review your retirement strategies and make sure that you have all you need to have a successful transition into retirement.
• Consider the ways in which you intend to keep your body and mind busy throughout your retirement years.
• Consider whether you continue to desire to accomplish any of the work goals you've set for yourself.
• Think about whether you want to retire entirely or keep working part-time for a little longer.
• Have a conversation with your employer about your goals for retirement.
• Collect details about any trips you intend to take during your retirement.
• Have a conversation with your family or partner about the date you plan to retire to see if it is still appropriate.
• Have a detailed plan for how much money you will spend during retirement, and check that your partner is on board with it.
• Consider conducting a policy review for your health insurance.
• You have up to three months before you retire to submit your request for the Age Pension so that you can begin receiving payments as soon as you become eligible.
• One of the most important aspects that play a role in determining how long one can enjoy retirement is one's life expectancy.
• People with more money set aside for retirement will be able to retire sooner and enjoy their golden years for a longer period of time.
• When it comes to retirement planning, having an accurate estimate of how long you will be retired is vital.
• You can estimate how long you will be able to enjoy retirement thanks to the materials provided by the Australian government.
• No matter how much you enjoy your work or how much you look forwards to retirement, your health may force you to make a decision.
• When it comes to dealing with health issues, early retirement can end up being the only choice offered to you, but that will rely on the kind of work you do.
• When it came to deciding when to retire, work availability or health concerns influenced the decision for fifty per cent of Australians.
• The same ABS findings show that wealth is even more popular than health as a cause for making the shift into retirement when it comes to causes for deciding to retire.
• 41% of men and 34% of women responded that feeling financially secure was the factor that had the most impact on their choice.
• Maintaining a familiar pattern and extending the life of one's retirement savings can be accomplished by continuing to earn an income after the traditional retirement age.
• If you are qualified for the Age Pension, it is important to be aware that you can continue to work and earn some money without having your payments reduced to a particular amount.
• In addition, if you stop working for a while, you can let your Work Bonus balance grow, which will allow you to make more money once you return to your job.
• If we look at when individuals are really retiring, we discover that the median age at retirement for those who have retired within the past five years was slightly under 63.
• Because of health problems or being made redundant, nearly half of all people living in Australia are entering retirement years earlier than they had planned.
• Don't put off starting to plan for your retirement until it's too late; get the ball rolling right now.
• Keep in mind that the earlier you start saving for retirement, the more time you will have to both build up your savings and make the required adjustments.