Smart moves before you retire

by | Jan 8, 2024 | Future Planning

Smart Moves Before You Retire: Financial Planning Checklist for the 50-60 Age Bracket

If you’re approaching and are starting to think about retirement, it’s time to make sure your financial ducks are in a row.

Below we will give you practical information and insights as to the value of planning for this event in advance.

What is retirement?

Is a phase in an individual’s life when they stop working and start relying on savings/investments, superannuation and/or social security to fund living expenses after exiting the workforce.

Why plan for retirement?

Effective retirement planning involves strategic financial decisions, ideally during one’s working years to ensure a comfortable and secure post-employment lifestyle.

This is done by using strategies & financial investments to your advantage to maximise your position, and do so in way that mitigates risks and plan for the ‘worst-case’ scenario.

What if I don’t plan for retirement?
Without adequate preparation, individuals risk facing financial challenges, relying solely on government benefits, struggling to maintain their desired lifestyle and not being prepared to financial market crashes or economic downturns.

Below we have provided a “go-to guide” for the essential steps you should be taking in the lead-up to retirement.

     1. Assess Your Superannuation: Give your super a thorough once-over. Is it aligning with your retirement dreams? Adjust your contributions and investment strategy if needed to ensure it’s working for you.

     2. Slash High-Interest Debt: Kick high-interest debts to the curb before your retirement party. Clearing the slate means more money in your pocket for enjoying those golden years.

     3. Fine-Tune Your Budget: do your best to future-proof your retirement budget by factoring in healthcare costs and your preferred leisure activities – use this resource for reference https://www.superannuation.asn.au/resources/retirement-standard . This ensures your financial plan is as sturdy and has a ‘goal/target income’ to achieve and maintain over time.

     4. Diversify Your Investments: Give your investment portfolio a once-over, compare it against other performing options in similar areas (compare it against the top 10 performing Super Funds @ Canstar’s website). Consider assets that balance risk with what your comfortable with tolerating and what is likely to achieve a return which is sufficient for your retirement needs.

     5. Maximise Superannuation Contributions: Turbocharge your super by taking advantage of contribution opportunities and caps. Pumping up your superannuation before retirement ensures you’re making the most of those sweet tax benefits & concessions which are currently provided by superannuation funds.

The above can be a confusing and daunting task, quite frankly it might just not be your thing! So always I would encourage you to have a go yourself in the first instance – however do note that professionals are readily available to assist you in particular areas.

Jayden Allison CFP®
MFinPlan, BCom (Eco&Fin), Dip. FS (FP)
Financial Planner

General Advice disclaimer

The general/factual information provided was done so without taking into account your personal objectives, financial situation or needs; you should consider the appropriateness of the general/factual information, in light of your own objectives, financial situation or needs, before following or relying on the general/factual information; if the general/factual information relates to the acquisition or possible acquisition of a particular financial product, then you should obtain a copy of, and consider, the Product Disclosure Statement (PDS) for that product before making any decision.