7 keys to your retirement income plan

7 keys to your retirement income plan

You may feel like you are in the ‘home straight’ with the traditional retirement age now in sight.  You are ready for a change and looking forward to avoiding the daily grind. Most probably, your thoughts will turn to money. How much will I need? How much is enough? How long will my money last and how do I invest my money? What is my retirement income plan? But there is more to retirement planning!

There is a lot to consider and you may be tempted to look for a simple solution or be influenced by suggestions from your friends or colleagues. Also, you may be influenced by prime time adverting by large institutions with big advertising budgets, who suggest that a single product will solve all your retirement planning funding requirements.

In my experience, starting to answer retirement income questions in this simplistic way, can limit your opportunities and lockout all the possible retirement income solutions.

“To prepare a detailed retirement plan, you need to take a multidimensional and not one-dimensional approach to retirement income funding requirements” 

Your retirement income plan

At Longwave Wealth, we believe every person CAN fund a happy, healthy and purposeful retirement by encompassing a multidimensional approach to retirement income funding for the following reasons:

1. Retirement vision

Have you actually thought about your vision for retirement and what you would like your retirement to be like? Having a realistic retirement vision is a strong starting point for all retirement planning.  You need to spend time thinking about the next stage of your life and all that you would like it to be. Your vision of retirement may be entirely different from that of your friends and family and should be based on what makes you happy. This process helps you establish your retirement planning non-financial goals.

Why retirement planning is not just about how much money do I need

2. Tangible assets

Using tangible assets such as superannuation, property, shares, cash and business investments are the traditional means to fund your retirement income requirements. A detailed retirement plan will include strategies to accumulate these assets as well as tax-effective income distribution.

3. Intangible assets

Your intangible assets are your technical skills and ability to earn an income for long term retirement planning.  The transition to retirement phase is an opportune time to review and reinvest in intangible assets, then, if the need arises you are able to use your skills to earn extra income.

4. Multi-stage retirement

Retirement is traditionally viewed as an endpoint in your life. With the benefits of longevity and the changing nature of employment, retirement may now involve several different phases. With a multi-stage retirement, you can fund different retirement income needs as they arise, rather than just coming to an abrupt end.

5. Working in retirement

Research has shown that financial security is important to happiness but just one component. As part of preparing your detailed retirement plan, you have to plan to replace all the aspects that you enjoyed about work. You may decide that you wish to continue to work in the same or a reduced capacity or in a completely different role so that you are happy in retirement.

6. Social capital

The Age Pension, subject to eligibility criteria, may form an important part of funding your long term retirement income needs.  With careful planning, you may still be able to have an E.P.I.C Retirement by using the Age Pension as a long term funding solution combined with other sources of retirement income.

7. Financial Lifeline

The bigger retirement picture involves known & unknown events, your spouse’s retirement planning requirements, likely inheritance’s that you may receive, downsizing, empty nesting, and support of your children/grandchildren. Such a lot to consider and we may assist you in seeing opportunities or sources of funding that are not immediately obvious.  These alternative sources of funding may make a significant difference to your enjoyment of retirement. Learn more about planning your financial lifeline here.

Conclusion

One dimensional retirement planning can lead to a one-dimensional retirement. You may be surprised by how many options you have and why retirement planning is not just about the money. A new mindset about retirement is required to set you on the right path to retirement.

As part of our 7 step retirement planning process, we explore your retirement income needs for each stage of retirement. We then use a multi-dimensional approach designed so that you can have an E.P.I.C Retirement.

Discuss question

What is your retirement income plan, have you considered all your options. Please contact us if you would like to discuss retirement income plan?

Links

EPIC Retirement

How much do you need for retirement?

7 reasons to review your retirement planning process


General Advice Warning: Any advice on this site is general advice only and does not take into account the objectives, financial situation or needs of any particular person. It does not represent legal, tax, or personal advice and should not be relied on as such. You should obtain financial advice relevant to your circumstances before making any decisions.

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