Three important considerations for before you retire
Date Posted: June 15, 2022
It’s never too soon to start planning your financial future, especially if you’re beginning to think about retirement. Retiring invokes a number of important questions that you may have never had to ask yourself before. When will I retire? Where will I retire? What kind of lifestyle do I want? Your responses to these questions will ultimately shape your answer to the final question – how much money will I need to retire? Keep reading to discover our top three things to consider before you retire.
- Your retirement timeline
When deciding on a time to retire, there are two key factors that come into play, the first is your age and the second is if you are paying off a mortgage.
Your age will determine your eligibility to access the Age Pension and your superannuation fund. In Australia the current pension age is 66 years and 6 months for people born between 1 July 1955 and 31 December 1956. Those born on or after 1 January 1957 will be able to access the Age Pension when they turn 67 years old. The age when Australians can access their superannuation is a little younger, between 55 and 60 years depending on when you were born.
Furthermore, whether or not you’re paying off a mortgage will likely influence your decision on when to retire. Some people may want to continue working until their mortgage is paid off, while others may decide to downsize to a more affordable home, so they can retire earlier.
- Your retirement location
Where you choose to live when you retire will have a significant impact on your finances. You may decide to move in with your kids, to a Retirement Village, to a Downsizing Community, to Paris or not to move at all!
If you’re looking for ways to free up extra cash in retirement, moving to a Land Lease Community will allow you to do just that. You’ll also benefit from all the household savings that come with owning a smaller, more efficient home, plus no stamp duty, no council rates and no water rates. Learn more about the financial benefits of downsizing in our blog.
- Your retirement lifestyle
Think about how you spend your money currently and how you would like to spend it in retirement. Do you imagine yourself sea-zing your days by the beach or jetting around the globe? Having the freedom to live the lifestyle you’ve always wanted is a universal desire. There are several ways you can enjoy a more liberated lifestyle by moving to a Downsizing Community, check them out here.
Essentially, everyone’s journey is different and there’s no cookie cutter approach to retirement. The most effective way you can prepare yourself for retirement is by determining your retirement timeline, location and lifestyle.
Photo by LOGAN WEAVER | @LGNWVR on Unsplash