Australians are living longer and retiring earlier, with many people now spending more than a quarter of their lives in retirement. There are a number of strategies people can put into place to ensure they are well placed for retirement
Good planning will make retirement easier and reduce financial pressures. An effective retirement plan should consider your personal goals and objectives during retirement and cover things such as how your assets are held, how to best maximise cash flow, how much money you will need and if you will qualify for the aged pension.
Working out your entitlements through Centrelink can be confusing and it is important to make sure you understand what your position will be in relation to receiving Government benefits during retirement. For many, the aged pension does not provide enough money to fund a comfortable retirement, but still plays an important part in qualifying for pensioner concessions which will save you money on expenses relating to health, utilities and transport.
Planning for unforseen events with effective estate planning should also be a top priority. An up to date estate plan is essential, not only to address the transfer of your assets to chosen beneficiaries upon your death, but also to clarify who will make decisions on your behalf should you become unable to do so in the future.
Transition to Retirement
As you begin to transition to retirement, you should consider the appropriateness of using an account-based pension (also known as an allocated pension). This type of product can provide you with a flexible and tax effective way of generating regular income in retirement. Once you turn 60 years of age, pension payments and lump sum payments from your pension account are entirely tax free.
If you are planning for retirement it is also important to consider protecting your retirement plans by ensuring your children are financially protected. In the event something was to happen to your son or daughter which left their family without any means of support, it would most likely be you who the family turns to for support. Circumstances such as this could place serious financial pressures on your retirement funds and in turn your overall retirement plans.
Eastwoods Wealth Management can help you reach your retirement goals sooner.
Contact us for more information