Turning 50? It’s time to get financially fit and ready for retirement
There’s no doubt about it, turning 50 years old is indeed a milestone.
For a number of reasons, but primarily because for most people, it signals the beginning of last decade or so, of their working lives. For this reason, it’s a great time to take stock, and if you don’t already have a financial planner, think about engaging one.
Are you ready to stop work? Can you afford to?
At the age of fifty, aside from maximising your superannuation contribution in your last years of work, you should also be considering a number of other factors – real estate assets, savings, investments … what you’ve accumulated over the years, and how you’re going make the transition from this ‘accumulation’ phase of your life to what the financial experts call the ‘drawdown’ phase. Put more simply, you need to start considering what kind of income level you want when you retire. How much will you need? And how are you going to ensure you can have it?
Can you retire sooner?
Conversely, with all of your assets, investments, super and savings could you retire a little earlier than you planned?
Working through the options
Retirement planning has a lot of challenges – and there are many and varied options such as securing an income from account-based pensions, to assessing your eligibility for a government aged pension.
Are you maximising your money for the best possible return? Or is it just sitting in a bank account?
Have you considered a strategy of ‘transition to retirement’, or the potential need for assisted living (needing an aged care facility) at some point down the track? Have you got appropriate insurances in place, and what is your tax liability moving forward?
“As you’re approaching retirement, it’s important to assess where you are at in terms of a comfortable retirement,” says Russell Tym Managing Director and part-owner of MoneyLink Financial Planning.
“In some cases, many women for example, aren’t as far ahead as they hoped to be. Through no fault of their own, they’ve taken time out of the work force or spent many years working part time to raise families or care for relatives and their superannuation is not as healthy as they may have hoped.
A financial health check
“But if you commit to a financial health check when you turn 50 then you can find out exactly what your position is, and if you know where you are and where you want to be financially, then there are strategies that can be put into place so that you can have a comfortable retirement.
“Don’t just ignore your looming retirement, or hope for the best,” says Russell. “Because it’s never too late to get professional financial advice. And the right advice can really put you on track, even if you started behind.”
Wealth management is the key
“A financial planner can make a big difference by helping you to clear up any uncertainties you have about your superannuation or your financial situation as well as give you a personalised approach to your wealth management,” explains Russell.
“Retirement should be a time when you can relax. After all of your hard work you should be able to enjoy a comfortable lifestyle. And all it takes is a little bit of preparation and planning.”
Contact us if we can help you plan for retirement.
Russell Tym is an Authorised Representative of MoneyLink Financial Planning Pty Ltd, an AFSL holder, No. 247360.
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