01 Aug 50? Here’s how to start planning for retirement
The reality for many people reaching 50 is life has got in the way of retirement planning. But, if there was ever a critical time to start retirement planning, 50 is the time.
At 50, you still generally have 10 to 15 years to ensure you enjoy what makes you happy well into your post working days.
Whether you’re just getting started or simply adding to your existing plan, follow these tips to help you reach your retirement goals.
First things first
The first place to start is to sit down and work out what shape you’re currently in and, with honest eyes, calculate where this current situation is likely to take you come retirement at say 60 or 65. If you keep travelling as you are, is it looking like you’re on track for what you would have hoped for? This is where a financial adviser can help – with a high degree of accuracy, we can tell you how you’re tracking towards retirement versus where you might hope to land.
Finding the gap
Unfortunately for about 8 in 10 Australians, there is in fact a gap between what people would like to have for retirement, versus what they are on track to have. Finding this ‘gap’ is a really important first step. It all of a sudden puts you in control to start to steer the ship in the right direction. While a bigger gap means there is more ground that to catch up, it’s far better to find out now when there is still time to make a change.
Look to your future
Envisage yourself in 10 or 15 years to motivate yourself to reach your retirement goals. For both individuals and couples in their 50’s, there are many excellent ways to grow net wealth.
Super generally forms a large part of your retirement nest egg. Getting the right structure, investment allocation and product is important. As financial advisers, we compare your fund with others available on the market to ensure your fund, investment mix and contributions are doing everything they can to help you achieve your retirement goals.
Another fantastic and often underutilised way to build wealth for retirement is outside of the super environment. The family home can be a source of dormant and underutilised equity. Using this asset as a platform to invest can be an excellent way to not only grow extra wealth for retirement, but to save tax along the way.
Invest in yourself
Your most valuable tool to growing your wealth is your ability to earn an income – having optimal health is like having money in the bank. You must not only look after yourself, but also consider how you will protect your wealth and cashflow in the event of sickness or injury. Insuring yourself from the unexpected will give you peace of mind and shore up your financial position.
Have a plan
Lastly, the best thing you can do is to have a plan. Small changes can make a big difference over 10-15 years. Ignoring your looming retirement and hoping for the best will never surpass a well thought out and executed plan.
We take pride in helping people. We ensure you are using your hard earned income and assets to the best of your ability. We help you work towards the retirement you’ve always dreamed of, which we believe everyone deserves.
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