The key to a happy retirement is understanding your goals and starting to plan as early as possible.
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Our retirement years can be some of the best years of our lives if we plan for them.
Having a financial plan enables you to take control of the dollars and cents.
But retirement planning is not just about the money.
“It’s about understanding your relationships with people,” Justin O’Donoghue, of AMP Advice Vintage Wealth, said.
“Your partner, your friends, your family. In retirement you’ll be using your time differently.
“People need to try and project forward and understand what their retirement might look like in reality for them.”
A big question that comes up is how much money a person needs to live in retirement.
The Association of Super Funds of Australia (ASFA) estimated that in December 2016 a couple needed about $1153 per week ($59,808) to enjoy a comfortable retirement.
But the truth is the amount an individual needs varies and comes down to the lifestyle they desire.
“I often get asked that question about how much money you need in retirement,” Justin said.
“Some can happily live on the aged pension while others need $1000 a day.
“The key is to understand what you’re retirement looks like for you.”
By understanding your goals in retirement and planning for them as early as possible, you can work out how much income you actually need and how you’re going to achieve it.
As a financial planner Justin’s focus is looking at goals, understanding what people want and devising strategies to realise those goals.
Factors that need to be taken into consideration include financial security and health services, transport, pension, super and tax.
“Many people think that looking at their superannuation is planning for retirement,” Justin said.
“At Vintage Wealth, we try to step away from that and focus on the discussion about goals and the plan to realise them.”
As George Burns famously said “we can’t help getting older, but we don’t have to get ‘old’.”
Our retirement years can be some of the best years of our lives if we work out what we want and plan for them.
AMP Advice Vintage Wealth has offices in Cessnock and services the Hunter Valley.
For more information call the team on (02) 4990 7333.