Retirement Planning Strategies
MBA, BSc, DipFP
Financial Planner / Managing Partner
Retirement Planning Strategies – 3 Things you Need to Know
Saving for retirement is one of the things most people flag as an important financial goal. It is also one of the most fraught with uncertainty and anxiety. When thinking about Retirement Planning Strategies, perhaps the most important word is planning.
It may seem obvious, but lack of planning is what leads to disappointment come your retirement party. Having a plan, and sticking to it, regardless of whether you start early or leave it till your 50s, is the only way to ensure success.
The Three Pillars of Planning
When developing your retirement planning strategies there are three key areas you need to look at.
1 – Debt
Whether it is a mortgage on your home, an investment property, a business loan or even a big credit card balance, retiring debt free should be a key objective of your retirement planning strategy. Your retirement income will almost certainly be significantly less than the income you receive when you are working.
It is also at the mercy of the movement of interest rates, share markets and property markets, so the fewer overheads you have the better.
Since mortgages are usually your single biggest debt, check out our article on Ingredients of a Financial Plan – Mortgages, for some ideas on how to reduce your exposure to debt quickly.
2 – Savings
Whether you are putting your savings into Superannuation, property of a coffee tin under the bed, this is the money you will have to rely on in retirement. How much you are able to save, without crippling your current lifestyle, will have a big impact on your retirement lifestyle.
So think carefully about what you can save, and where it is best to save it. Good financial advice can help you determine your best fit for savings. In the meantime, our articles Ingredients of a Financial Plan – SMSF and Ingredients of a Financial Plan – Superannuation can give you some food for thought.
3 – Tax
Tax is inextricably linked to both debt and Savings and is the final of the three pillars you need to consider in your retirement planning strategy. Whether you own your own business, or receive a salary from an employer, there are tax minimisation opportunities that will ensure you have more money available to both pay down your debts and save for the future.
Also by utilising Superannuation as a core saving strategy you can benefit from a range of tax offsets and reductions, which not only enhance your tax position while you are planning, but provide ongoing tax benefits during retirement.
If you feel you need help with your retirement planning strategies, Manly Financial Services has the expertise and knowledge to provide you with a fully structured plan that will ensure you are able to enjoy your retirement with peace of mind around your finances. Call us on 02 9976 3388 or contact us through the button below, to find out more.
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