How to plan for Retirement

4 April 2018

Published by Brent Kelly, Financial Planner and Principal, Kelly Wealth Services

The Planning Process

It doesn’t matter if you’re a doctor planning for retirement or a teacher planning for retirement or a tradie planning for retirement, the principles are all the same.

The planning process starts with discovery, asking a lot of questions and answering those questions with thought and consideration.

The key to a successful Retirement is to plan for one.

Questions To Ask

The following are a simple set of questions everyone can follow to help the planning process.

  • Do you have hobbies? How will you spend the hours you currently spend at work?
  • Do you know what it will cost you per year to live?
  • Do you have any travel plans or bucket list plans in the first five years of retirement?
  • Do you know how much they will cost?
  • Do you need to buy a new car, upgrade or renovate the home?
  • Do you still have obligations financially to your children’s university or  helping them buy a home etc?
  • Have you calculated your total asset value or the income that your retirement assets will provide you?
  • Do you know what impact inflation will have on your assets and living expenses over the next 20 to 30 years in retirement?
  • Do you know if you will be eligible for Centrelink or the Age Pension?
  • Have you prepared a Will?
  • Do you want to leave a legacy behind for your children? Will you be able to look after yourself and take care of your retirement?

A lot of these questions, you should find fun and joy in answering.   Some of the questions do require calculation and an understanding of things like inflation and what asset growth percentages may be. For example: what property asset will grow each year, what amateur share portfolio will return each year and what your superannuation may grow by each year and what you’re also contributing to superannuation. These technical questions can generally be answered by a financial planner who specialise in retirement planning.

Retirement is a journey not a destination

But if you can answer these questions, you generally have a great start towards planning for your ideal retirement.

 

You may also like

What is salary packaging?

What is salary packaging?

What is salary packaging? Salary packaging is an ATO-approved employee benefit that allows you the ability to spend your pre-tax dollars. But it can also seem quite complicated in the beginning. Primarily you get paid in return for the work you do but before this...

read more
When advisers become magicians with Centrelink

When advisers become magicians with Centrelink

    Thinking about retirement? In your late 50’s or 60’s? Wondering if you can get some of that hard earned TAX money back via Centrelink and Aged Pension? BUT YOU have NO idea where to start.     Read on, as this article will help you get...

read more
Why you should not DIY your personal insurance

Why you should not DIY your personal insurance

Personal Insurance in the 21st century is a necessary evil. I should know – I work with people everyday who need to be insured, or who are claiming on their personal insurance, and if they didn’t see the need for insurance, they wouldn’t have it.. I’m not going to...

read more
Survival guide to dealing with a redundancy

Survival guide to dealing with a redundancy

Are you facing possible redundancy? The COVID 19 Pandemic has changed our world for ever. For most people change is difficult to cope with but especially a major financial change that’s outside of your control, like forced redundancies. As I write this paper (August...

read more
Managing Money for a Purposeful and Fulfilling life

Managing Money for a Purposeful and Fulfilling life

“Most people in the world would express, in one way or another, the same sentiment when it comes to money. We all want to have a better and more fulfilling life than the generations that have gone before us. We want to take each opportunity presented to us to increase...

read more