Many of our clients come to us for advice when they are approaching retirement, and the most asked question is, ‘how much money will I need to retire?’ This query has a unique answer for everyone. The solution to retirement budgeting is not a one size fits all. To get you to your end goal our advisers will ask you some important questions about your financial circumstances and your needs and expectations for retirement. Once we get a clear picture of where you are at we can help you get to where you want to be.
Here are some questions we will ask you when you come to see us:
1. What age would you like to retire?
When you retire can have a significant impact on your retirement bank balance. For example, if you have a goal of retiring at 55 there will be less time for you to accumulate savings than someone who would prefer to wait until age 65. Factors such as your health, debts, superannuation balance, the age you can access super and your partner’s retirement plans can also impact the bottom line.
2. What is your cost of living going to be?
The answer to this question depends on your expectations. Will you be content with a simple life that covers basic living expenses, or do you want to spend your newfound spare time ticking off a few bucket list holidays and dining out? Do you want to stay in your family home or downsize? Once we know what your wishes are we can help you with a budget and a plan to get there.
3. What is on your bucket list?
It’s important to think about your dreams when retirement planning. They are a great motivator to keep you focused on your retirement savings plan. We love hearing how different everyone’s vision of retirement in. Perhaps it’s a once in a lifetime trip around the world. Maybe you want to learn new things – some retirees even decide to take on a university degree! Others can’t think of anything better than getting on the road to join the grey nomads. They are all choices with different financial requirements that will need to be included in your financial plan.
4. Do you want to leave a legacy for your family?
Most people decide that they want to enjoy the fruits of their working years and opt to fund their retirement by spending pretty much all super and investments. They see the family home as their major contribution to their loved ones’ inheritance. If you can leave more than this be sure that your estate planning is robust to avoid unintended consequences such as tax and estate challenges. If leaving a more substantial legacy is important to you we can help you plan for it.
5. What assets do you have now?
Your super balance often forms a substantial part of your retirement savings, but other assets should not be overlooked. If you have plans to downsize, sell shares, an investment property or other investments to fund your retirement, this all needs to be considered. You may also be expecting an inheritance or proceeds from a family estate.
The thought of retirement can feel overwhelming if you are not sure of where you are at financially. Don’t stress if you are not quite there yet. We can help you with strategies to boost your super and maximise your investments. If this has got you thinking get in touch.
General Advice Warning: The information provided in this article is general in nature and does not consider your particular investment objectives, financial situation, or insurance needs; we therefore recommend you seek advice tailored to your individual circumstances before making any specific decisions.
Dobbrick Financial Services (Gympie) Pty Ltd ABN 48 931 205 109 and Dobbrick Financial Services (Ipswich) ABN 86 100 184 521 & DFS Oakland ABN 64 340 527 395 and their advisers are authorised representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.
