How to take control of your finances in retirement
One of the hardest things to do in the lead in to retirement is figuring out how much you have, how much you need, and where the money is coming from.
As superannuation fund Equip notes in this clip, there’s a need to change, “The way members think about super – shifting the conversation away from a 'pot of gold' at the end of the working rainbow to drawing their benefit down as regular retirement income.”
We’re going to take you through the basic ways you can take control of your finances in retirement, so you can be sure that your nest egg will go the distance.
Information you need to be on top off
There’s no way of knowing if you’re nest egg is sufficient if you’re not aware of that you have. The Australian Securities and Investment Commission’s (ASIC) Money Smart online resource advises you know the following:
- What are your assets (i.e. house, savings, and investments) and how much are they worth?
- What is your super balance, and when will you be able to access it?
- When can you apply for the age pension, and will you be eligible?
One useful resource is the Equip Retirement Calculator, which gives you a fair indication of the level of super you might have in retirement and how long it will last.
Making a long term financial plan
One of the most important things about financial planning in the long term, is being aware that your needs might change over time.
In the first few years of retirement you might be keen to take up a new hobby, travel, renovate or make a significant purchase, but it’s important to be mindful of your long term needs.
This is why it’s so important to seek financial advice. By employing the advice of an expert, such as those operating at Equip’s retirement expo, you can get your head around your financial needs.
Additional ways you can grow your nest egg
ASIC’s MoneySmartonline resource also recommends the following methods
- Budgeting carefully and not splurging on luxury purchases immediately.
- Being aware of benefits and concessions you may be eligible for.
- Continuing to work for a period, even in just a part-time capacity, to extend your funds.
Equip manages $7 billion of investments for members working across a wide range of Australian industry sectors. This superannuation fund has been providing strong investment performance and has been a reliable provider of retirement benefits for over 80 years.
The Equip Retirement Expo gives you the opportunity to speak to industry representatives at pop-up booths, discover new tools and products for a happier, healthier retirement and better calculate and compare your super options.
To register for Equip’s Retirement Expo, simply click here.
Related links:
Hidden costs to retirement village contracts
The costs involved with residential aged care
A third of Aussie women are retiring in poverty