Transitioning to Retirement – when is the right time to retire?
Retirement is an important phase in someone’s life as they conclude or reduce their working commitments. Before you enter this stage it is crucial that you prepare and plan accordingly to accommodate the retirement lifestyle.
In Australia, there is no official retirement age but there are special conditions, which determine when you can receive your superannuation benefits. Firstly, the preservation age is when you can access your super, provided you have retired from the workforce or satisfied another condition of release. Secondly, the pension age eligibility is important and whether you satisfy the age pension income and assets test to access the pension.
Other retirement factors include life expectancy and the type of lifestyle you want in retirement determines the amount of income you need to sustain the associated lifestyle costs.
There are also other external factors that can impact retirement and they include redundancy and ill-health.
Knowing how much you need to retire from savings, superannuation and investments is a great way to prepare for retirement and to implement strategies to improve your retirement nest-egg.
Now & Ongoing
Retirement age and life expectancy are two factors you need to take into consideration to effectively plan for retirement.
Assessing your own personal income situation from your current salary, living costs, rent or mortgage, personal wealth and return on investments establishes a foundation to achieve retirement goals.
Analysing your current situation assists with the transition from the now and how much money you need till retirement age.
Having a clear focus on increasing your portfolio will improve your financial stability when you decide to retire.
Control Your Destiny
There are many simple factors that you can have direct control of your retirement savings.
The amount of money you earn to generate your personal income.
In contrast, the money you spend for living costs and other financial commitments is a vital indicator for your transitioning into retirement.
There are also plenty of business strategies and solutions for your personal wealth that can assist in generating more income. These strategies include the following;
- Improving your business profitability & value
- How you invest it
- How you protect it
- Minimising your tax liability
- Maximise your business value
- Improve your profit
- Grow & protect your wealth
Monitor
Setting clear goals is a performance measure that can realistically assess if you are able to achieve your retirement plans.
Every person or couple are going to have different goals depending their financial position and also their retirement aspirations.
A person or couple’s life aspirations can be broken into basic, modest, median and comfortable and the amount of after tax money needed to support there retirement.
Retirement goals can be directly related to their retirement lifestyle and need to be specific and measurable on a year-to-year basis to ensure you have purpose and achieve these goals.
Our Results Based calculator can assist you with assessing your financial goals and help improve your financial position by adding more value to your portfolio.
We can tailor different business to solutions to assist with the transition into retirement.
This can give you a clear understanding on how much money you will need and what age you can afford to retire.