8 Simple Steps To Start Planning For Retirement
Planning for retirement can be a daunting task. No one wants to think about getting older and living on a fixed income, but with a little planning retirement can be the best years of your life. Retirement planning will help you reduce the stress of financial considerations and arm you with a plan to deal with issues if they arise. The key is to have a plan, eliminate debt, and stick to a budget. ASIC offers a collection of useful retirement calculators that you can use completely free of charge.
Retirement Planning Calculator
Having a plan of action will help to determine the amount of money you will need in retirement. The more luxurious your plan, the more retirement income you will need! A retirement planner calculator can help you to see if you’re on track
Learn To Budget
When you live on a fixed income, it is important to allocate the income to fixed expenses first. Then set aside money for variable expenses. And finally any leftover is the fun money. Have a budget and stick to it.
Get rid of debt before you retire
Retirement is not a time to be paying off debts. Discuss this with your financial adviser as you get closer to retirement.
If you plan to leave an estate, it may be to your own financial detriment. Realize any estate is money that could be used during retirement years for living expenses, quality of life, or travel.
Factor in large expenditures
Homes, appliances, and vehicles all age. That means maintenance or replacement at some point. These large expenditures need to be worked into your budget.
Understand your age pension and other entitlements
Depending on your personal situation you may need to deal with the DHS, the DVA and/or Medicare. Make an appointment with a Financial Information Services officer to help you determine which services you are eligible for
Super Funds can be tax free income
When super funds enter the draw down phase both the earnings & withdrawals from the fund are tax free(there are exceptions so please consult your adviser). You should obtain professional advice to see whether this type of strategy is appropriate for your circumstances.
Get a gym membership
The biggest unplanned expense for seniors typically involves a medical issue. Why not minimize the chances of such things and feel better about yourself with a gym membership. This small monthly expense could save you a lot of money in medical costs. If looking to move into a village, a gym and pool is an amenity that you will really get value out of when compared to the cost of a gym membership.