Regardless of your age, or how much money you have in your super and investments, it pays to know what “retirement planning” is and how it works.

You’re never too young to have a plan

In your 30’s and 40’s, you might spare a thought about retirement, even though it seems a long way off. Usually you’ll make a wish list of the type of lifestyle you’d like to have, where you want to live and the type of activities you want to pursue. Travel is high on the list of most Australians when they think about life after work. Into your 50’s and 60’s you need to take a more realistic look at when you will retire, what you can reasonably expect by way of an income while you enjoy the years ahead, and how it should be paid to your maximum benefit.

What age are you going to retire?

This is probably the factor that most affects your retirement plan. The age you retire may depend on your health, your desire to stop work or even keep working. By planning now you’ll know how your financial position is going to impact the age you retire. Personal preferences aside, in Australia the two most important things to consider are the age when you can access your super benefits, and the age when you can access the age pension.

Choose the pension that’s right for you

In the retirement phase, you may choose to have your super fund pay you an income stream that is exempt from tax. To qualify for this type of pension, your super must meet an annual minimum requirement.

If you’d rather transition to a retirement pension, you may be able to begin receiving an income from your super before you officially retire, called a pre-retirement pension. This can be handy if you want to reduce your working hours and supplement your income with your super.

Plan to grow your retirement income

For the sake of long term planning, often your adviser will suggest that you invest some of your money into shares and property – assets that can grow over time, help you keep pace with inflation, and provide an income stream.

Start planning now

Giving up work may not be as difficult as you imagine, when the days and years are yours to fill with friends, family and personal interests. But, to get the most out of your retirement financially, you need to start planning now.

At Elston, we can work with you to tailor a retirement plan to your circumstances and requirements, professionally and expertly from the start.

If you would like more information please call 1300 ELSTON, contact us or email info@elston.com.au and an adviser will be in touch.