As you approach your fifties and sixties, you will probably start to think about retiring. For many women, this can herald a significant change in lifestyle. Some early planning for this new stage of life can help you enjoy a successful transition from work to your retirement.
When can you retire? Currently, you can access superannuation from age 55 to 60 depending on when you were born. You may be entitled to the age pension from age 65 to 67, also depending on when you were born.
Making a gradual transition to retirement- many women choose a gradual transition to retirement, often winding back their working days over a few years. There are ways to make this happen such as a transition to retirement income stream, or pension, which lets you draw down your super to supplement your employment income when you cut back your working week.
Will you have enough money? The amount of money you will need to retire depends on your age and your intended lifestyle. Most retirees need more income in their first years of retirement when they might take the opportunity to travel or pursue hobbies. As they get older, their lifestyle winds down and they will need less income. The aim is not to outlive your money.
Give your super a last-minute boost- if you earn substantial take-home pay, speak to your employer about contributing to super from your pre-tax income. While it means taking home less pay now, it is a simple tax-effective way to add to your super. If you're on a lower income you may be eligible for a government co-contribution by making after-tax super contributions.
Good advice can be a good investment- our tax and super systems are complex. Getting good advice to help you navigate through your finances can make a big difference to your outcomes and peace of mind.
For more information about retirement planning contact Alison Kable and Associates at 254 Anstruther Street, Echuca or ring on 03 5482 2239.
Alison Kable is a Certified Financial Planner and Authorised Representative of AMP Financial Planning Pty Ltd, AFS Licence no. 232706. This article contains general information only. It does not take into account your objectives, financial situation or needs. Please consider the appropriateness of the information in light of your personal circumstances.