Tips to prepare for retirement

Looking forward to an enjoyable retirement? Check out our top 10 tips to make sure you are on track. Take stock – How do you want to live in retirement? Now do the numbers. How much will it cost? How much have you saved? Do the figures meet your expectations? If not, what action do you need to take now? Plan for the rest of your life – Most people are retired longer than they expect. While your health and family longevity will influence your life span, if you have survived life’s early risks, such as accidents or illnesses, you could easily live into your nineties or older. Plan for the long term, and do not forget that you might need extra assistance or care as you get older. Review your investments – For your savings to last the rest of your life, you need to invest for the long term – and that means getting the investment mix right, with a balance of income and capital growth. Diversifying your investments across cash, fixed interest, shares and property can help to reduce risk and achieve smoother, more consistent returns over time. Stick to your plan – Investments can quickly change in value. While it can be tempting to sell everything when the market falls and put all your money in cash, it can be a bad decision. It’s important to remain focused on the long term as markets usually recover if given enough time. Get the structure right – By changing the way you own investments and receive income, you might be able to reduce the amount of tax you pay while also increasing your Centrelink or DVA benefits. Even if you aren’t eligible for an age pension, you might be entitled to discounts and other benefits, which can save money over time. Get your affairs in order allows you to pass on the right assets to the right people at the right time. The first step is putting a will in place, but you should also speak with your solicitor about an Enduring Power of Attorney and medical care directive. These can help your family fulfil your wishes if you’re not able to make decisions yourself. And remember to review your estate plan at least every three years. Stay fit and healthy – If you stay mentally and physically active, you are more likely to enjoy a long and healthy life. Take up a hobby, learn a new skill, keep working or volunteer in your community. Re-think the move – Some retirees have moved away from friends and family to their dream location only to realise it was not what they hoped for. If the coast or bush is beckoning, try living there on a temporary basis first. It will give you time to work out if it is the right move. Think about the ‘what ifs’ – The last thing you need in retirement is for your finances to be affected if something unexpected happens to you. Review your personal insurance needs to make sure you are adequately protected. Do not forget health and travel insurance cover, especially if you plan to join the grey nomads. Get help – Making financial decisions can be complex. Getting the right advice can make a big difference to your retirement. Contact your financial adviser and get the right advice now.