Many of my customers say they would retire tomorrow if they could. Wouldn’t we all?
But when I press them to give some serious thought to when they actually could retire, there seems to be a great deal of uncertainty. The current share market climate is making a lot of people uneasy, even after the slow road back to a sense of normality after the Global Financial Crisis. A lot of my customers say that they’re unsure about their long term investment choices when things aren’t set in concrete in the short term.
To help them to think clearly about getting retirement ready, I find it helps to ask these five simple questions.
How much do you need?
Working out this figure is your best jumping off point, and not at all difficult. Concentrate on net income, and be sure to account for taxation and all other possible costs.
How long will you need it?
Hardly a pleasant thought, as no-one likes to consider not being around to enjoy life after work. An approximate figure is fine – just an idea of how many years you might need to support yourself without full-time income.
What's in a number?
You may have always planned to retire at 55 and sail round the world. That’s fine, but if you were to consider retiring at age 60 or 65, it can really pay off. In the latter stages of your working life, you’ll find that what you're willing to contribute to your after work income goes up, which means that by working a few more years you’ll have more to play with once you decide to call it a day. You simply have to weigh up your desire to retire with your desire to enjoy your lifestyle of choice after work.
Should I just scale back?
Would you be willing to consider scaling back your existing working arrangement so that you enter part-time or casual employment before you fully retire? This can help you begin to enjoy more time away from work while still letting you make decent contributions to your post work salary. This is definitely something to speak to an expert Financial Planner about if you’re interested.
Will I need lump sums?
When we think about retirement, our minds rush immediately to the finer things in life – holidaying, a nice car, perhaps a boat, or being in a position to help out our family. Be sure that when weighing up your retirement options, you factor in any of these big ticket items on your shopping list.
Retirement isn’t a one-size-fits-all concept with many factors to consider. So that you can get it right and live comfortably after work, why not speak to an expert?
The Greater have partnered with Bridges, an industry leader in Financial Planning, Superannuation, Stockbroking, and so much more. What’s more, you can book a complimentary initial appointment in just minutes just by clicking here.
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