It’s never too early (or too late), to start planning your retirement!

Outside of day dreaming about taking an early retirement – or making vague plans about how they’ll spend all that free time – most people prefer not to think about how much money they need to comfortably retire, let alone put in place achievable goals…that is until retirement is looming on the horizon! 

So what can you do to set yourself up (literally) for the rest of your life?

What do I need to do to plan for retirement?

A superannuation review.

Three words. One click (or call) to organise. Read more below…

When should I start planning for retirement?

With the financial year coming to an end this is your ideal opportunity to put a plan in place for the upcoming year…and beyond. Don’t delay the inevitable – what you do today will make a massive difference to the total amount of super you have at retirement.

A super review in your 30’s and 40’s may include some consideration around salary sacrificing. Forfeiting a portion of your pre-tax income into your super is a terrific way to save on tax and boost your nest egg, quickly. This may not be what you want to hear right now, however your advisor’s job is not to tell you what you want to hear…but to safely plan for your prosperous future.

If you’ve been proactive, when you reach your 50’s you should be able to take pride in watching how your savings have grown (and are continuing to grow)…and start to start planning your upcoming retirement strategy (and how to go about spending appropriately)!

Who can I talk to about my superannuation?

Thankfully, you don’t need to be an expert, you just need to find an expert. A good financial planner is your go-to guide to help you set – and stick to – your financial goals.

Your job is to be open and honest about your plans and current financial situation, your tolerance for risk, to provide the necessary documentation and do your best to stick to the plan!

Their job is to understand you and your ambitions, consider your cashflow and expenditure, and review your super. As a part of this procedure they will look at the various options available to you and provide you with appropriate recommendations. They will assist you in tailoring your super to fit whatever stage of life you are at, and guide you through the steps towards achieving your goals.

How can I maximise my super?

There are some easy actions you can take to help your super along, such as keeping one super fund that meets all of your financial objectives. Seeking out the help of a professional advisor ensures that your super is set up correctly and that you won’t need to make significant sacrifices down the track or – even worse – into retirement.

Superannuation review
The purpose of a superannuation review is to determine if your current super strategy is the best option to look after and grow your retirement savings. The investment performance of your current fund is assessed against other options in the market, and compares fees, investment options and insurance coverage.

Statement of Advice
A Superannuation Statement of Advice (SoA) formally documents your retirement goals, the analysis of your current superannuation position and provides a range of options for achieving your goals. Importantly, it provides personalised advice based on your unique circumstances and specific financial needs and goals.

The review may confirm that your current fund remains the best option for your retirement savings. Alternatively, you may decide to switch to a different superannuation fund that better aligns with your goals. Regardless, conducting a thorough superannuation review is the only way you can make a fully informed decision about your financial future!

Death benefit nomination
A death benefit nomination is a legal document allowing you to specify how the balance in your fund should be distributed in the event of your death. It provides instructions on who should receive the balance of the fund, and in what proportions. It ensures your family is covered should anything happen to you and means that your hard earned savings will be distributed according to your wishes.

The nomination can be binding or non-binding, depending on the rules of the fund and your preferences. A binding nomination requires the trustee to distribute the fund according to the nominated beneficiaries, whereas a non-binding nomination provides guidance to the trustee, but allows them to exercise some discretion.

It’s best practice to review who is on your nominated list every few years, as personal circumstances can and do change, and you may need to adjust the beneficiaries or allocated proportions.

Risk management is an important aspect of any financial strategy. Insurance is designed to protect your assets, cover unexpected medical expenses and provide replacement income. In other words, risk management and appropriate insurance can keep you on target in unexpected (and unplanned for) circumstances. And because you can choose to incorporate any family and personal life insurances into your super (instead of your bank account), for many people this is a no-brainer!

Why should I review my superannuation?

The main purpose of a super fund is to preserve and grow your money, so that you can enjoy the lifestyle you want, now and into your financial future. And a well timed super review ensures your super is set up correctly to meet your needs.

So if you haven’t started planning your retirement, what are you waiting for? If you’re putting off a super review, the risk is that you are significantly reducing your retirement funds! And if you’re approaching retirement, you can start to consider how you are going to spend your savings…and your time!

Regardless of where you are in life, knowing your financial position is crucial, and it’s never too early (or too late) to start organising your finances!

Here at moneylab, we believe that finance is a science, and that financial wellbeing can always be improved, so contact us to get started on your personal review today. Because our financial advisors are always here to support you in managing your wealth to achieve your life goals.

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