Best ways to plan the Finance for Retirement

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Best ways to plan the Finance for Retirement

Retirement is an essential part of life, a well-deserved stage to be enjoyed without stress or worry over certain imperative aspects of living. The best way to make sure that your retirement living is as smooth and worry-free as possible is to begin planning for it well in advance.

The ideal age to begin thinking over and planning your retirement is once you reach 50 years of age. It is the time when you are still actively working and free from your worldly responsibilities towards your children and family. It is the time to think about your well-being and life, including the unfulfilled dreams you did not have the chance or space to fulfil.

Best ways to plan the finance for retirement in Australia

Planning for your retirement begins with streamlining your expectations from your retired life. Consider the following aspects to construct your retirement plan around:

  • Age: Ascertain and decide your age for retirement. If you enjoy working, you can choose to slow down work or redefine your work profile.
  • Expectations: What do you expect from your retired life? Would you want to relax and rejuvenate, keeping your days free to choose as you please, or would you like to plan a semi-structured lifestyle covering the activities you would like to pursue?
  • Travel: If you have always wanted to travel and see the world, you can do so once you retire from your active work life.
  • Choice of residence: It is important to plan for it accordingly to decide how and where you would like to stay after your retirement. You can choose to continue living in your home with a supportive family and staff to assist you, or you can opt to stay in a retirement village.
  • Activities: As this is your time to fulfil your dreams and interests, it will be prudent to prioritise your interests and chalk them into your retirement plan. Pursuing activities or learning different skills requires planning and money.
  • Retired life: Are you planning for just yourself, or would you like to retire with your partner? The planning would need to be charged accordingly, keeping all the points mentioned above in mind.
  • Financial Commitments: All the debts and financial/investment commitments to be paid and fulfilled before the retirement age. A well planned financial calendar can be worked out with the help of a professional financial planner, who will also help you plan your retirement life.

Best Way to Save for Retirement

Once you have drawn up a good working plan for your retirement life, you need to begin saving. If you are in the practice of saving, then you might already have some amount saved and hopefully well invested with good returns. And now, you would need to plan a more extensive saving plan to achieve the goal you have perceived and are planning to fulfil.

  • Invest: A common misconception amongst people is that one needs big earnings to begin investing their money. Large or small, the amount of money should not stop you from investing. Consult with an investment planner to find out your options and begin investing. The planner will develop a customised plan per your financial status and future goals. Find out investment plans that save on taxes. There are specific government schemes that are tax-free. Some investment options include:

o Shares

o SIPS

o Mutual Funds

o Property

o Government bonds/schemes

o Savings accounts with reasonable interest rates

  • Superannuation: The most tax-effective option available for Australians. Understandably, understanding and circumventing superannuation can be frustrating and confusing due to its complex and constantly changing structure and rules. But do not let this discourage you from considering this tool the main investment option. Consult a professional who will guide and help you.
  • Sublet: If you have multiple properties or have invested in them, you can sublet it, ascertaining a fixed amount to add to your retirement fund. 
  • Saving: Set aside a fixed percentage of your salary/ income as your savings. You will be surprised how the piggy bank money can slowly but surely build up into a handsome amount down the years.

Benefits of Retirement Planning 

Planning for retirement is not only prudent but is also essential to have a stress free independent lifestyle in your golden years. Financial planning for Retirement will systematise your income and expenses fluidly to cover all your basic needs and desires. You will live a carefree life without apprehensions of receiving any sudden shocks. Old age also brings with it an increase in medical expenses. The planned finances will cover any possible contingencies or emergencies and the regular health upkeep and check-ups. 

Imagine living a life with no worries, absolutely self-reliant and on your terms without having to worry about tomorrow. So, begin your retirement planning today to live your golden years in the best possible way!

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