Have you set your future goals in retirement?

Written on the 5 May 2023 by Parkside InvestorPlus

New research from Equip Super showed that over 40% of its pre-retiree members have either no formalised plan, or no plan at all, for their future retirement goals. 

You can extrapolate this finding to the broader pre-retiree base, i.e. generally, 40% of pre-retirees do not have a formal plan in place for their future retirement goals.

So, why is it that such a high proportion of pre-retirees have not properly planned for their retirement?

The reasons of course are varied, yet I think many pre-retirees may feel retirement just happens and they will just ‘fall’ into it without needing to do anything.

The truth though is that the retirement phase of life if very critical, there will be so many considerations, including;

• How much money do I really need to live in retirement – do you want a modest, comfortable or the same type of lifestyle you had when working?
• What am I going to do with all this time now on my hands?
• You’re not getting any younger, how will I handle aged care needs?
• And of course, what legacy do I leave behind

This is where planning your retirement comes into play.

Good planning can increase your financial security in retirement.

Once you’ve worked out how you want to live, you need to set up a suitable and relevant financial strategy.

As a minimum, your strategy needs to include:

• Regular income needs to meet your regular expenses
• Access to long-term capital growth
• A cash reserve to cover emergencies
• A balance between risk and return
• Having fun!

Your financial strategy in retirement is unique to you because it will help you reach your goals.

Your Goals in Retirement

Knowing what you want to do in retirement and developing goals and aspirations that matter to you is vitally important.

Imagine going on an overseas holiday and not planning!  You would not.

So, start planning for your retirement.

Here are some steps to think about;

• Fully understand your finances and financial goals, e.g. will you be mortgage free, how much will you want in yearly income, how much do you intend to leave as inheritance etc.
• If you’re still working and your super balance is not enough, then you will need to start topping up.
• At some point you will need additional health care in your retirement – has this been factored in.

It’s hard to cover off on every single event – this is where your financial planner can help prioritise your actions.

If you’re approaching retirement or if you’re already retired, and you’re concerned about maintaining a comfortable standard of living in an environment of rising costs, come and see us at Parkside InvestorPlus for a review of your current situation, (02) 9899 4899.