Further to my earlier article on What to do Before Retirement, this article makes further suggestions or reinvigorates earlier ideas with added focus now that you are ‘Retired”.
Retirement is a significant life stage that offers the opportunity to enjoy a multitude of activities you might not have had the time for during your working years. While most of these ideas would no doubt be centred around hobbies, health, family or travel, this article will explore your finances to provide guidance on how to ensure they are set to support your retirement goals.
Superannuation and Other Assets
Review your financial situation and ensure your retirement savings are allocated in a manner to meet your expectations and requirements. The transition from working life income to being self-sufficient can take adjustment and educating yourself to understand the longevity of your funds and impact of certain decisions can go towards greater enjoyment and empowerment in retirement.
Centrelink Entitlements
For those eligible, applying for the Centrelink Aged Pension is a useful method for supporting living expenses. For those who don’t qualify for the Age Pension, there is the Commonwealth Seniors Health Care Card (CSHC) which may be available and provides similar concessions to the Pensioners Card. It is a concession card which provides access to cheaper health care as well as a range of discounts. Most recently access has been increased and benefits widened so this card is a valuable addition to self-funded retirees if they qualify.
Educate Yourself
Understanding your retirement funds and the rules involved with accessing or managing these funds can be complex and filled with jargon, additionally the rules regularly change meaning what worked for a friend in the past may not apply to your situation. Spend time understanding the basics and aim to adopt a financial plan you understand, simple is often best.
Be Proactive
Early retirement can be an adjustment, and as we progress through health issues may come into the fold, so the first stages of retirement are a time to set goals and step into what you have dreamed of doing. Seek peers and tap into others in the community who are at a similar phase. This is the “one day” you dreamed of and it’s time to start living a values-based life.
Estate Planning
This is not an immediate requirement for retirement but more one to ponder now that you have the time and headspace. Consider your wealth and what is likely to remain and how you would like it allocated. For some it’s an easy decision, whereas for others it takes time and can bring peace of mind knowing your wishes are documented.
Charitable Giving
This is a way to contribute to causes and organisations that you care about while making a positive impact on the world. This type of giving can be either financial or giving of your time and effort. Giving back to your community fosters a sense of belonging that helps create a stronger more connected community. Financial giving offers tax incentives that may help reduce your overall tax liability. Overall giving back can be a way to express gratitude for the opportunities you’ve had in life and be an impactful way of leaving a lasting legacy.
Seek Financial Advice
Financial advice at this significant life stage can assist with fostering a feeling of freedom following years of work or focusing on your career. A financial adviser can review your finances, suggest alternative arrangements, and undertake modelling to help forecast your financial situation, all of which either leave you in a better or more informed position. Additionally, they are up to speed with the complex array of rules and understand much of the jargon and are happy to support you on your journey.
Knowing you have the finances and are armed with the knowledge to progress through this stage can be empowering and enable you to enjoy your other retirement interests with greater vitality.
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