Retirement is a significant milestone in life that many Australians look forward to. However, the period leading up to retirement, known as pre-retirement, can also be a crucial time for planning and preparation.
We asked Bree & Darcy, Authorised Representatives from OzPlan Financial Services, four common questions about pre-retirement in Australia.
Q. When should I start planning for retirement?
A. Time is your friend …. It is never too early to start. The earlier you start, the more time you have to build your retirement savings which should lead to a comfortable retirement.
Q. How much money will I need for retirement?
A. This is a million-dollar question… there are so many variables to consider such as what age you wish to retire, life expectancy, living expenditure requirements, retirement lifestyle preferences and where your retirement savings is invested. We work with you in understanding your individual requirements and provide calculations, demonstrating how much money you will need.
Q. What are the key steps to take during pre-retirement?
A. During the pre-retirement phase, it is essential to assess your current financial situation, ensure you are investing in the most appropriate tax effective structure, performing a health check on your current superannuation. Upon investigating many people discover there are many alternatives.
Q. What is a comfortable retirement in Australia?
A. Retirement needs are very individual and personalised. However, as a guideline the Association of Superannuation Funds of Australia’ publishes quarterly retirement standard benchmarks for couples and singles for modest and comfortable lifestyle. We can provide a copy of the latest publication which outlines the current modest and comfortable standards on request.
If you require further information, feel free to visit OzPlan Financial Services at 120 Nixon Street, Shepparton, call 5821 9177 or email us: mbmozplan@mbmgroup.com.au
