Retirement should be an exciting chapter in your life—but for many people approaching it, the financial decisions can feel overwhelming.
Here are 10 of the most common questions pre-retirees ask – and why seeking advice from a qualified Financial Planner can make all the difference.
- How much do I really need to retire comfortably?
Many Australians wonder if $500k, $1m, or even more is enough. The truth is, it depends on your lifestyle (including spending habits, and ‘bucket list’ travel plans) and other factors such as your health and how long your retirement might last. We can model different scenarios and stress-test your retirement plan to help you retire with confidence.
- Can I afford to stop working now, or should I delay retirement?
Leaving the workforce too early can sometimes put pressure on your savings. But is it worth working longer if you’re no longer enjoying it? Does a part-time transition makes sense? We can analyse your retirement savings and income stream projections, and combine with market risk assessment to allow you to determine your retirement timing.
- Should I take my super as a lump sum or start an income stream?
Withdrawing your super in one go or converting it into an Account Based Pension may have pros and cons. Professional advice helps you navigate tax implications, Centrelink considerations, and ensure your money lasts as long as you do.
- How do I maximise my Age Pension entitlement?
Understanding the income and assets tests can be tricky. Seeking advice can help structure your assets – including using strategies like gifting rules or annuities – so you may maximise government support without breaking any rules.
- How should I invest my super (or savings) as retirement approaches?
Many pre-retirees ask whether they should switch to conservative investments to avoid serious impact to portfolio balance as a result of market volatility. We can build a diversified portfolio in line with your risk tolerance that balances growth and defensive assets to fund a long retirement while protecting against downturns.
- What’s the smartest, most tax-effective way to draw my retirement income?
It depends on your circumstances. A range of strategies are available, including Transition to Retirement (TTR) Pensions, Account Based Pensions, Annuities and SMSF strategies. We can help you structure your withdrawals efficiently, minimising tax and maximising your retirement income.
- Should I pay off my mortgage or put extra money into super?
It’s a common dilemma. We can compare tax benefits, after-tax returns, interest savings, and super contribution strategies to find the most beneficial approach for you.
- How do I prepare financially for healthcare and aged care costs?
Future medical and aged care expenses can be significant, but hard to estimate. We can plan for these contingencies, helping you set aside funds to cover potential costs without jeopardising your lifestyle.
- Should I keep managing my SMSF or move to a retail/industry super fund?
Running a SMSF can be rewarding but can sometimes pass a use by date. We can review whether it’s still cost-effective and suitable for your stage of life, or whether a simpler option may work better as you enter retirement.
- What happens to my super and investments if I pass away?
Estate planning is often overlooked until it’s too late. We ensure your beneficiary nominations and other estate planning tools are set up correctly to provide for loved ones and minimise tax.
Why professional advice matters
While online forums and calculators can offer general guidance, your retirement journey is unique. A qualified Financial Planner can provide you with personalised strategies to maximise your retirement income, minimise tax, and give you peace of mind for decades to come.
Ready to get answers to your retirement questions?
Contact us today to start planning a retirement you can truly enjoy. Phone 08 9322 1110.
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