Why ‘Planning Your Retirement’?
Planning your retirement optimises your retirement experience. You will benefit from involvement in that planning. Your personal circumstances, needs and goals are considerations in the planning process. Planning early makes the task easier and more successful.
Some relevant questions to answer –
- You are going to retire – right? So, best start planning your retirement now.
- You would like to be (financially) ready to retire at the time that suits you – right? Regardless of how much money you will need to retire with a lifestyle of your choosing:
- the sooner you start accumulating for that event,
- the less you will need to worry about as you get closer to the big day.
- The most frequently asked question we hear when clients raise retirement planning with us is:
- How much will I need invested to be able to retire and live comfortably?
Whilst the answers to the above questions will be different in each person’s case, the key considerations will include:
- how long do you have until you would like to retire? – affects the investment timeframe available to you
- how old will you be then? – determines the extent to which you will be to draw on superannuation (if at all)
- where do you want to live in retirement? This decision (and the remainder of this set of questions) helps determine how much you will need to retire at the proposed date. (for more on this aspect see our article – Preparing for Retirement.)
- what cost impact will a change from your current residence have?
- are there ‘dependants’ who will require your time (and resources?) during your retirement ?
- is your health sound: and is it likely to stay sound up to and in retirement?
- what financial requirement will provide you the comfortable lifestyle you anticipate for retirement at the desired date?
Planning retirement is a holistic process.
Answers to the above questions (and others that arise) should be cognisant of your prevailing circumstances. Your individual needs and expectations in relation to retirement are key – and somewhat unique – to you. Attention to each of the following will enhance results –
- business structures. Where business activity/ entities are involved business succession planning and review will avoid complications;
- estate planning. Ensure attention has been paid to Wills and Enduring Powers of Attorney and that both are valid and current;
- existing income, accumulated wealth and associated cashflow; and
- existing life insurance protection (and other insurance policies).
Is your proposed retirement date earlier than a superannuation condition of release?
Special care is required if the proposed retirement date precedes having met a condition of release of superannuation funds. This will necessitate advanced planning. Superannuation funds cannot be accessed prior to the preservation age unless some other condition of release is met. This would not be compatible with an early retirement strategy of the type we are considering in this article. Where the preservation age allows access, but you are still under the ‘tax-free pension’ age, there will be some taxation considerations to be borne in mind.
You know we can assist you in planning your retirement –
The wealth management professionals at Continuum Financial Planners are experienced guides through for your contemplation of early retirement. They will listen to you; they will ensure they understand your needs; they will provide solutions. We offer renowned ongoing service through which clients experience our care about their personal situation.
To ensure you are ready for retirement on your terms, arrange a meeting by –
- call our office on 07-34213456; or
- at your convenience, use the linked Make A Booking facility.
and that you benefit from the experienced wisdom of one of our advisers
(This article was originally posted by us in March 2012. It has been occasionally refreshed/ updated, most recently in January 2025.)