When you begin to approach the age of retirement, questions often begin to pop up about your financial future. One of the biggest and most pressing questions that you should consider is your ability to support yourself for an extended period of time. While you should have a money in Super and possible access to all or part of the age pension to aid in your retirement, it is possible that it is insufficient for all of your retirement needs. It is important to evaluate what funds you have available in your superfund and compare it to the lifestyle you would like to maintain. Can the amount you have in your fund support your means?
While your Superfund is a good place to start in evaluating your circumstances to retire, another is your financial state with your bills. While you will have reoccurring bills such as food, entertainment and so on, you should also consider if your home is paid in full or if you are going to have the added cost of rent or a mortgage. If you have to pay rent or a mortgage, it would be of value to you to add up what your total cost of living would be for one year and compare that to the available income you have for your retirement. Should your cost of living outweigh your income, you might consider revaluating your retirement date. Certainly you would need to consider how long your money will last.
Another aspect to consider about retirement is your medical status. While you may be in good health at the moment with little to no medical bills, this may change later on with age. While we all wish for good health, it is important to plan for medical expenses that may occur. When you reach retirement age, you will be eligible for added assistance from the government, but this may not cover all the funds. It is important to plan for the unexpected in the case of retirement and set aside additional funds to support current or future medical costs. Membership of a private health fund may assist here.
Retirement should be an exciting time! While it has the potential to be a stressful time leading up to your big day, remember the best way to plan for retirement is to start early! Setting small amounts aside for retirement will best aid your efforts for a comfortable retirement.