Today, with Australians living longer and healthier lives, the concept of retirement is much different to what it was only one generation ago. Not only that, but for each retiree, retirement is different.
When planning your retirement there are, typically, four areas that need to be considered.
Define your retirement vision
Everyone has a different view of what retirement means and what their own retirement may look like. What’s yours? Understanding what’s important to you is an essential factor that not only helps clarify your outlook on retirement but it also ensures your financial adviser can recommend appropriate retirement income strategies.
Understand your cash flow requirements
Retirement is about cash flow and ensuring you have the regular income to meet your basic daily needs. An adviser can help you define your basic spending needs and show you how they will be met in later years.
Clarify your lifestyle goals
It’s important that you clearly convey your lifestyle goals and objectives to your adviser. This also includes understanding which of your goals are a ‘must have’ and which are more flexible, should trade-offs be required.
Testamentary intentions are also considerations for retirement planning. While it’s important that your retirement plan aligns with your intentions, the appropriate professional advice will also help you consider the provision of income and distribution of assets in accordance with your wishes.
Remember, preparing for a comfortable retirement shouldn’t be as hard as you think. When speaking to your adviser about your retirement strategy, keep in mind these four basic steps.