If I said ‘retirement planning’ you’re more than likely to think of growing your super or savings. But it’s not just about having enough money to retire on. It’s just as important to have a plan on how you will spend your money.

1. What does your vision of retirement look like?

Knowing what you want from your retirement will help you establish how much money you will need to achieve that. Often we can’t get everything we want out of retirement but setting goals can help you to prioritize and motivate building your retirement savings. Ask yourself:

•    What kind of lifestyle do I want?
•    Do I plan to keep working at some level?
•    Do I want to travel?
•    Where will I live?
•    Will I want to downsize or renovate my home?

2. Have you thought about how you’ll fund your lifestyle?

Are you on track to fund the lifestyle you want from your retirement? If not, you may need to revise your retirement savings plan or, especially if you’re very close to retirement, you may need to revise your spending plan.

3. Will you be eligible for any government assistance such as the pension and the pensioner concession card?

Make sure you take advantage of any government assistance available to you. Your financial planner can help you find out if you will be eligible.

4. Do you expect to pay off your home or other debts before you retire?

Take into account any debts when looking at your retirement plan, particularly if you’re close to retiring. Paying off your debt before you retire isn’t always the best option. Sometimes, rather than paying off the mortgage faster, extra contributions to super can be a better use of your cash because of the tax advantages they give you. You can then pay off your debt when you hit retirement. Ask your financial planner what the best option is for you.

 

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