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Planning your retirement
Retirement means different things to different people and trying to work out what it means for you and what you want to achieve in this stage of your life is just as important as any other.
Few of us have got to where we are today without a little planning and strategy and getting ready for this next stage of your life is no different. So here are some suggestions of what you should do as you work towards retirement.
Decide what your retirement plan looks like
You may be considering:
- A "sea or tree change"
- A better balance between work and leisure
- More time for your interests and hobbies
- More time with the family
- Keeping mentally active and earn some income
- Working in that job you always wanted to do
- Sharing your skills as a volunteer
What’s important is that you develop some ideas so that you can put a plan in place to achieve it. Remember this is about more than your superannuation it covers all aspects of your life and family. So, ask yourself some key questions:
- What do you plan to do?
- Where do you plan to do it?
- How do you plan to afford it?
Not sure - then consider these simple steps:
Start budgeting
We can hear the groan from here but we are not talking about tightening the belt although you may want to do this once you see the results. The first step is to see not only where you money is going but also if there is any leftover that can be redirected to building your super savings. So if it’s a case of you don’t know where it goes but its gone, then doing a budget even if it is for a few months will give you some real insight and will put you back in control of your money.
The Australian Government website Money Smart provides tips and tools on preparing a budget. It is a great place to get started and you may be surprised by what you find.
Consider converting non super assets to super assets
Your super will play a big role in your retirement income. Under the current rules, money drawn from your super fund after age 60 is tax free and prior to that is concessionally taxed. But remember, this only relates to money in super. Any interest or returns from your investments outside the super environment are taxable and need to be declared on your tax return each year.
So one strategy as you move towards retirement is to look at your assets outside of super and consider whether they would work harder for you in a superannuation environment. This way you can ensure that you are maximising your contributions into your super account. Take a look at Take Control for some hints here.
Reduce your non-deductible debt
Non-deductible debt is debt associated with credit cards, car loans, home loans although not investment loans. The non-deductible means that you can’t claim costs and interest payments associated with the debt.
Having little or no non-deductible debt in retirement is ideal but a dream for many of us. Reducing this type of debt prior to retirement means that more of your retirement savings can be invested. That means they are working for you rather than servicing a debt.
Get informed
If you are reading this then you have already started and that’s great! There’s a lot of information resources available to you. Take a look at the following tips to put you in a more powerful position to make decisions about your retirement.
- Continue to review the information on this website.
- Go online via MemberAccess - what easier way to keep a track of your own superannuation account. Simply, click here to register for online access.
- Read your annual statement pack - it’s full of great information about your fund. You can also register to access your statement online - just login to MemberAccess and nominate this option. That way you will never lose a statement.
- Attend an Asset Super Seminar - they are informative, educational and stimulating - and they’re free.
Can I stay with Asset in retirement?
Of course you can stay an Asset member – we get asked that a lot.
Asset prides itself in offering members a product range that helps them at various stages of their lives:
- Throughout the accumulation phase when you are building your super assets, you are a member of the Asset Superannuation fund which not only offers an environment in which your assets can grow but also provides insurance cover to protect you and your family.
- If you wish to ease into retirement, Asset’s Flexible Pension Transition to Retirement Option supports you through that period offering regular income and allowing your super to continue to work for you;
- And once you fully retire, Asset’s Flexible Pension provides unrestricted access to your super to support you in retirement.
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