Retirement: The Great Unknown

Retirement will likely be one of the most uncertain times in your life and there are generally two main areas of concern: lifestyle and financial.

Retirement Plan

The financial concerns sometimes seem to be more prevalent than lifestyle concerns. Lifestyle concerns can include: how you will fill in your time, being bored, health, relationships, not wanting to cease work or worried that it’s the end of your productive life. To this end, it is just as important to plan your lifestyle as it is your finances.

From a financial side, transitioning from the financial security of a wage from a stable job to paying yourself from your hard-earned retirement savings and making sure those savings last 25 to 35 years can be immensely stressful and take away from the enjoyment of retirement.

Given this stress comes from the unknown, it can be mitigated by increasing your knowledge and setting a retirement plan. These two items go hand-in-hand in successfully navigating retirement.

Knowledge is power
Many retirees employ the ostrich solution to retirement planning. They stick their head in the sand and hope for the best. However, when you have complete knowledge of your finances (both current and future) you gain two things:

  1. The power to make positive changes to your current and future situation if you are not happy with the trajectory of your finances; and
  2. The freedom to make future decisions (like holidays, renovations or upgrading your car) with full knowledge on how it will likely affect you later in retirement.

Along with gaining knowledge in relation to internal aspects that affect your retirement, you should also focus on the external aspects such as superannuation, investment markets, Age Pension and legislation that may impact your retirement.

This should be followed up by mapping out what the future might look like by setting out a retirement plan.

Your Retirement Plan
Once you know where you are, you can plan for the future to ensure that you can fund your desired lifestyle expenses and retirement goals, such as traveling.

Your retirement plan contributes to a crucial part of your knowledge – it maps out your assets and expenses throughout retirement. It allows you to see what might be achievable and should be adjusted as your circumstances, goals and external factors inevitably change over time.

More than just the numbers
Your plan should focus on what is within your control – good strategy, discipline in sticking to your strategy and patience, nothing happens overnight. A good strategy is pointless if you do not have the patience and discipline to stick to it.

Transfer the stress…
Using a financial advisor can help you with the technical side of your retirement plan by crunching the numbers. However, using a financial advisor is about more than the numbers… through strategy, discipline and patience, a financial advisor can help reduce the amount of time you spend worrying about money and let you spend more time enjoying your retirement.

Want to know more? Give our Senior Financial Advisor, Sam Campbell, a call today on 0268832200.

Related article: How much super do you need to retire? The million dollar question…

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