Nov 19, 2018  | Tags: retirement, retirement planning

Our Insights

Some people dream of an early retirement, while others plan to work as long as they can. Regardless of what your retirement will look like, putting a clear plan in place early will pay huge dividends when the time comes. Clearly articulating what your goals are, calculating how much you’ll need and working out where your income will come from is the key to maintaining a great lifestyle in retirement.

On top of the strategy, here's some other ways to free up retirement income.

Downsize the family home

We understand, family homes are difficult to let go of. But the fact of the matter is that there may be several hundred thousand dollars that can be contributed towards your retirement if you downsized. While it is nice to be able to have the grandchildren over at a house full of family memories, most people just don’t need the additional bedrooms, bathrooms and outdoor space that comes with a large family home. What’s more, large, old properties are much more expensive to maintain than smaller, newer builds, meaning they are a double-drain on your retirement fund potential. Consider downsizing to a newer two or three bedrooms home that’s easy to maintain. The difference between the purchase price and what you sell your family home for can be a massive boost to your quality of life in retirement.

Get the most out of your super

Superannuation is a fantastic, tax effective way to save for your retirement. Legislation relating to super continues to evolve, and there could be more you can do to maximise the benefits you will realise when it comes time to retire. That could involve contributing more to your super, switching or consolidating funds or starting a self-managed superannuation fund. An experienced wealth manager can advise on these areas to give you the best outcome when it comes time to retire.

Consider working part-time

Full retirement doesn’t appeal to everyone. Some people would prefer the extra money and social interaction that comes with working part-time in retirement or transitioning to full retirement. This could involve reducing your hours, consulting from home, or doing something completely different that’s less taxing on their energy, such as babysitting or tutoring.

Set up an account-based pension

Account-based pensions can be an effective way to manage your income and your budgeting in retirement. Essentially, your savings from superannuation can be placed in an account-based pension and paid to you regularly as if it were an income. By planning for your needs and sticking to your budget, these accounts to be an effective tool to manage your superannuation payments for the rest of your life. 

Work longer

Don't shout this idea down just yet! Working even a little longer than originally planned can actually pay huge dividends in retirement. That’s primarily because often people are at their peak earning potential when they are at retirement age, and with the kids out of home and mortgages paid off, people’s expenses are often at their lowest in decades, too. This mean the potential to divert a substantial amount of savings to super in a tax effective way is huge. The amount of money that can be saved by just working another year or two can be substantial.

Start planning early

Whether you choose to employ these ideas or others, the best favour you can do for your future self is to start planning early, and seek out quality advice that delivers a strategy to achieve your specific retirement goals.

Get started now

What are you waiting for? Contact Calder Wealth Management forf a no obligations discussion about your retirement plans. 

Calder Wealth Management are the wealth experts. Call us on (08) 8373 3333 to schedule your free initial appointment. 

Written by Ben Calder, Private Client Adviser at Calder Wealth Management.