Retirement these days looks very different to the generations before us.
It’s not as clear-cut as working one day and fully retiring the next.
With the Age Pension eligibility age currently increasing from 65 to 67 by 2023, many people are choosing to transition to retirement with a reduction in work hours.
Just as many people ask themselves when should they, or can they retire?
And this is just where the questions start.
There are many factors to take into account when making this important decision.
Here are some key emotional and financial considerations when contemplating retirement.
Your work
• Does your work still give you a lot of pleasure?
• Do you regularly daydream about retiring or have a countdown to leaving the workplace?
• Are you ready to leave work completely?
• Is it your decision?
• Does your current workplace support reduced hours or flexible work practices?
• Are you happy with what you’ve achieved in your workplace?
• Would you like to try something different work-wise?
• Is there a job that would better suit you in semi-retirement?
Filling your time
• Do you know what you would do with the extra time you would have on your hands?
• Are you looking forward to having this additional free time?
• Do you have hobbies or activities, such as volunteer work, that make you feel valued?
• Will you be spending more time with your partner and how will your retirement plans complement each other?
Lifestyle and financial considerations
• What kind of lifestyle do you envision for your retirement and can you afford it?
• Will you qualify for the Aged Pension?
• Should you consider downsizing and reassessing large purchases?
• Have you spoken to a financial planner to determine how much money you need for retirement and how those funds will be managed? For example, they may suggest a transition to retirement strategy that may enable you to access your superannuation savings as an income stream.
• Do you have a contingency plan if your funds are insufficient?
• Have you discussed your plans with your significant others?
Health and wellbeing
• How is your health and wellbeing now?
• How will you manage your health and wellbeing in retirement?
Importantly you will also want to think ahead about your future aged care and put some plans in place.
As part of your estate planning you may wish to appoint a General Power of Attorney and Enduring Power of Attorney.
You will want to consider where you live and what medical support you may need.
What next?
You should consult a qualified Financial Planner to provide advice on how you will fund your retirement, and a Wills and Estate Planning lawyer such as Gill and Lane for estate planning.
Every situation is unique and we have the expertise to help navigate any complexities that exist or could arise when it comes to planning your estate and aged care plans.