We provide retirement planning to many of our Perth clients. We have found that a lot of people have no idea what it entails. While we can’t give any specific advice on this blog, we thought it would be nice to give some basic information on retirement planning. Here are the basics of retirement planning, courtesy of ASIC’s MoneySmart website.
Taking Control of Your Finances
ASIC recommends a three-pronged approach to retirement planning: take control of your finances, create a viable, long-term financial plan and find suitable vehicles for growing your retirement income.*
ASIC provides a booklet that tells you where you may withdraw your super, investment options and income stream choices for retirement, pros and cons of a lump sum versus an income stream, pros and cons of transitioning into a pension stream and where to obtain professional financial advice.*
After you know these facts, ASIC recommends that you find out exactly where you stand financially. This includes knowing your assets, where and when you can access your super, when you can apply for age pension and whether or not you are likely to pass eligibility tests.*
Creating a Long-Term Financial Plan
ASIC recommends a long-term financial plan that takes any impending changes into consideration. For example, you may finally decide to turn a lifelong hobby into a passion. You may take up a new hobby. You may want to downsize, renovate or travel. You may need a new vehicle.
Growing Your Retirement Income
ASIC acknowledges that the most common fear of retirees is outliving their money. They suggest that you obtain professional advice as early as possible. A professional financial adviser can make you fully aware of the risks and rewards of various financial strategies. The other two important things to do: diversify your investments and manage your spending.*
Call Approved Financial Planners in Perth
We have a wealth of retirement planning experience in the Perth area. Call us today to learn more: 08 6462 0888.
*ASIC, MoneySmart. “Retirement income planning.”