Possibly the 5 most important questions you need to ask yourself as you prepare to retire
As you plan for retirement, there are five crucial questions to consider.
Author: Jonathan Llewellyn | Financial Adviser | HFB Private Wealth
- Am I eligible to retire?
- How much money will I have?
- What should my retirement budget be?
- Where do I want to live?
- Will I be debt free by the time I retire, or what is the impact if I am not?
The answers to these questions and the confidence you have in them will help you set a pathway for a comfortable and low stress retirement. Over the next two months we will explore these topics starting with eligibility and how much you will have in retirement.
Am I eligible to retire?
There’s no set retirement age in Australia but there are some practical hurdles to clear if you want to access your super or receive a pension.
You won’t be able to access your super until you reach what’s called your ‘preservation age’ (between 55 and 60 depending when you were born). You will also need to retire from the workforce or, if you plan to continue working part time, start a transition-to-retirement pension. Once you turn 65 you can access your super whether you’re still working or not.
Learn more about when you can access your super.
How much money will I have?
In the Investment Trends’ 2023 Retirement Income Report, 35% of retirees said they expect their savings will outlast them, up from 28% the year before. Even though this is a welcome improvement, 33% still said they expect to outlive their savings.
In order to avoid regrets, if you haven’t already done so, tally up all your potential sources of retirement income. This will likely include super, a full or part Age Pension and any investments held outside super. We can help you calculate where and how much you will be able to use in retirement.
General Advice Warning
The information contained in this communication is of a general nature only and does not take into account your personal financial situation, needs, or objectives. You should consider whether the information is appropriate to your specific circumstances before acting on it. We recommend seeking advice from a qualified financial adviser before making any financial decisions. The information provided is based on current laws and regulations, which are subject to change. Please note that past performance is not indicative of future results.