What I wish I knew: pre-retirement
Financial Literacy -
When it comes to making big decisions, having a crystal ball would certainly make life easier. But if you don’t have the benefit of this foresight , the next best thing might be understanding the decisions that others in the same position have made and what they might have done differently if they’d had the benefit of hindsight.
In new research by our life insurance partner TAL , pre retirees shared their expectations as they journey towards the end of their working life, and retirees shared what they wished they’d known prior to retirement So, given we don’t have a crystal ball it’s worthwhile seeing what we can learn from their experience.
The research showed that the range of experiences was as different as the individuals themselves, but the unifying factor seemed to be a general lack of understanding of how super works in retirement . While 74% of pre retirees said they were engaged in managing their financial health, many said they were unclear how to put it into practice by maximising pre retirement savings or managing their finances in retirement
For those already in retirement, many wished they’d understood the impact of putting more into super before retiring, while others were nervous about the future , not really knowing how much they’d need to live comfortably.
So, to address some of the common concerns we’ve compiled a list of top tips to help you on your way to a more secure retirement
- Grow your super
The power of compounding is your friend when it comes to retirement savings. If you can afford to contribute extra to super, even small amounts made consistently over time can grow into a substantial sum. You may be eligible for government co contributions or tax bene fits for extra super contributions or so it’s worth talking to a financial adviser or accountant to see if they apply to your situation.
- Combine your super accounts
If you have more than one super account, you could be spending more than you need to on fees. You may have lost track of accounts over the years if you’ve changed jobs so it’s worthwhile visiting the Australian Taxation Of Australian Taxation Office website at my.gov.au to find out. You’ll be able to search for lost accounts and and we can help you consolidate your super.
- Set clear goals
Retirement goals look different for everyone. While some people look forward to a chance to wind down and take things easy, others plan to do some of the things they haven't had time for during their working life like hobbies and travel. Define your retirement goals in terms of lifestyle, travel, healthcare and other expenses. Having a clear vision will help you determine how much you will need to fund the lifestyle you'd like to lead in retirement.
- Seek professional advice
It’s important to get the right advice before you make any financial decisions. The good news is you have a range of options available to you:
There’s free financial information, tools and calculators available from trusted sources like the Australian government’s MoneySmart website.
We’re always here to help, so get in touch if you’d like to find out more about your financial options in retirement..
If you’re looking for professional advice, make sure your financial adviser has an Australian Financial Services license . You can check on the Financial Advisers Register.
Achieving financial health in retirement is a journey that requires careful planning but by implementing some of these tips and seeking professional advice you can build a foundation that provides you the confidence to enjoy the lifestyle you'd like to lead and peace of mind throughout your retirement years.
Disclaimer
The health and financial information contained in this blog post is not a substitute for advice from a qualified medical or other health professional or a financial adviser. It is not intended to diagnose, treat, cure or prevent any health problem. Always consult your medical practitioner or other health professional in relation to any medical issue or concern The information in this blog post is of a general nature only and does not take into account your individual needs, objectives or financial situation. Before making any decision about a life insurance product you should consider the relevant Product Disclosure Statement and seek professional advice before deciding whether it is suitable for you. You can also get a copy of any relevant target market determination. This blog post has been prepared by TAL Life Limited ABN 70 050 109 450, AFSL 237848, an issuer of life insurance.
While all care has been taken to ensure that the information provided is accurate and complete at the date of publication, neither TAL Life nor its employees accept liability for any loss or damage caused as a result of any use of or reliance on the information.
Links from this blog post to pages on any other third party website are provided for your convenience only and do not constitute a recommendation or endorsement by TAL of the content of those pages. Use of these links is at your own risk. TAL does not control and is not responsible for any information or material found on those linked pages, or any website of which they form a part.