A Long term Perspective on Getting Ready for Retirement

If you’re contemplating your future plans, have you thought about how you’d like to transition into retirement? Adequate preparation and thoughtful planning are essential for a successful retirement.

Successful retirement plans often involve laying the groundwork well in advance, taking into account factors such as work, expectations, lifestyle, financial considerations, and estate planning.

The following checklist can serve as a useful guide to help you prepare for the retirement lifestyle you desire, regardless of the stage you find yourself in. Please note that many of these options are not set and forget and you will need to review at certain stages leading up to your retirement.

15-20 Years Before Retirement:

• Carefully consider:
• Your expectations for retirement, including travel, hobbies, and other activities.
• Your desired retirement location.
• Acquiring new skills through your current job that may be beneficial in retirement.
• Develop financial plans based on your personal and financial goals. Seek professional advice if necessary, from a licensed advisor.
• Assess your family circumstances, particularly if you are financially supporting any children.
• Prepare or update your will and designate an executor.
• Arrange an enduring power of attorney and an advance health directive.

5-10 Years Before Retirement:

• Review and adjust financial plans, taking into account:
• The amount of money needed for retirement and the available funds.
• Strategies to minimize the gap between desired and available retirement income.
• Consideration of a possible retirement age, eligibility for the age pension, or access to superannuation.
• Exploration of retirement investment options, superannuation plans, potential tax implications, and available government assistance.

• Deliberate on:
• Skills that could generate extra income in retirement and whether they need updating.
• Potential retirement locations, especially if considering a move to another town or state.
• Discuss retirement plans with your partner and agree on the timing.
• Update your will as needed based on changes in personal or family circumstances.

1-2 Years Before Retirement:

• Review financial plans and budget with a clearer understanding of your retirement plan.

• Contemplate:
• Working part-time in the last few years before retirement.
• Taking long service leave or a holiday before permanent retirement.
• Assessing the affordability and timing of your retirement.
• Update relevant skills for earning extra income in retirement.

• Consider your future living arrangements:
• Evaluate whether your home needs significant repairs or modifications for retirement.
• Plan for any workshop or shed needed for retirement activities.
• Assess whether your car requires replacement.
• Plan for potential travel by collecting information and identifying cost-effective times to travel.
• If downsizing, decide whether to make a downsizer contribution to your superannuation.

6 Months Before Retirement:

• Review financial plans and budget, making necessary adjustments:
• Confirm the suitability of your planned retirement date; discuss with your family.
• Undergo a comprehensive health check and review health insurance.
• Prepare or update your will, designating an executor.
• If not already in place, arrange an enduring power of attorney and an advance health directive if not done previously.

3 Months Before Retirement:

• Check eligibility for Australian Government payments and services, including the Age Pension.
• Review financial plans and budget, making any final adjustments.

It’s important to note that we are here to point you in the right direction. Although we are not financial advisors, we are in contact with like-minded financial advisers that we can put you in contact with to support you in planning for your retirement.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.