Retirement Planning: 5 Steps to a Successful Retirement Plan

Every day that goes by is one day closer to your retirement. Depending on how financially organised you are, this can either be an exciting realisation or one that causes financial fear and stress. 

There is a lot you need to consider when you prepare for retirement. 

While it can seem like a huge task, breaking it down into simple steps can make a world of difference. 

Retirement planning doesn’t happen in one night. So much thought goes into many different factors. If you’re curious about the essentials of a successful retirement plan, here’s a small outline that’ll help:

1) Look at Your Current Financial Situation

The first step is to assess what you have now in terms of savings and other assets. You may like to work on your current and future financial security at the same time. 

Retirement can make you financially vulnerable as you lose your working salary. A good thing to do is review your budget, regular living expenses to see where you could potentially improve. 

2) Think About What You Want Your Retirement to Look Like

Whether you see yourself travelling the world, moving to a relaxing, lazy coastal town, or spending more time with your family – think about what your retirement will look like.

Your version of your dream retirement will help you plan for how much money you will need to fund it.

3) Set Retirement Goals

After understanding the potential costs, set up your goal of how much money you want to save for your retirement. Many recommend over-estimating the total amount of expenses and saving much more than expected for contingency’s sake. 

The final amount will vary for each person due to your individual circumstances so it’s best not to compare your retirement plan to others.

4) Set Up Your Income Streams

Most Australians will have a large portion of retirement funds saved in their super fund. But many people won’t have enough super to last their whole retirement so it’s important to make smart decisions about your super account now. This way, you can grow your nest egg before it’s too late. 

Alongside your super, you may have other retirement savings to rely on. Consider setting up retirement-specific investments for you to access through your retirement. 

Plus, if you are eligible for the Age Pension, this may be another income source for you to use. Managing this can be quite difficult, but it will be key to having enough throughout the years. You can try to generate some additional income post-retirement depending on your circumstances.

5) Seek Financial Advice

Wealth management can be rather tough to deal with, especially as you approach retirement and things get more complex. 

Getting financial advice early on may just steer you in the right direction when planning retirement, as experts are able to suggest and point you to what’s a priority.

Right now, around 45% of Australians don’t feel secure enough or prepared for retirement. But every Australian has the power to take control over their retirement. 

You can create a retirement planning strategy that saves you from the worries and stresses of a less-than-ideal retirement. Speak with a financial advisor and start thinking about the future.

Following these 5 steps can help you get started on a successful retirement plan. Many people recommend starting planning in their 30s, some even earlier, to have more time to save and prepare.

Need help with your retirement planning? Horizon Wealth’s financial advisors in Brisbane can help you refine your retirement planning strategies and manage your wealth. Call us to get started today!