To drive your financial plan for retirement it is vital to firstly do some specific planning about your retirement lifestyle.
The best way to do this is to put financial issues aside for a moment and just focus on lifestyle goals. Start by brainstorming with your spouse on things such as activities, hobbies, socialising and travel.
Then, there are other issues that need to be considered too, such as family connections and whether you want to spend more time with children or grandchildren.
Residence and location is another major factor to be thought through. Will you want to downsize or move to a more recreationally oriented suburb or town? Perhaps you want to live closer to family too. The types of amenities you will want to enjoy are also important, such as clubs, sporting facilities, transport services and health facilities.
Envision a future to drive your finances
It’s only when you have projected your lifestyle desires and choices that you can start to consider the practicalities of how you can structure your finances. Of course there is the daily cost of living to be funded, as well as access to money for discretionary or lifestyle spending.
Then there are also the one off expenses, such as overseas travel, to be considered.
Planning a budget and the timing of ‘big ticket’ items will then feed into how you structure your investments and income streams. Potential age pension entitlements need to be factored into the mix too.
Don’t leave it until it’s too late
The benefit of doing this process in advance is that you can model how well your superannuation and other investments are faring, in relation to how much you will need.
Every person’s situation is different and the complexities of superannuation, investment, debt reduction, social security and taxation makes it important to enlist expert assistance to help manage the situation and map out the future.
Talk to your adviser about how they can help you design your ideal retirement.