Life is for living. The earlier you can retire from the stresses of work, the more time you’ll have for the things you enjoy doing most. It sounds simple, but it does take some careful planning. Read on to find out the goals you need to set for your 50s so that you can retire when it suits you.
The first two biggest dependencies are these:
- The age you’d like to retire
- The amount of money you’ll need for your chosen lifestyle
It’s not a hard and fast rule, but most people would normally aim to have a retirement income that’s about 60-65 percent of their pre-retirement earnings.
Accessing Your Superannuation Plan
Super is the main income source for most people. It’s typically possible to begin accessing it between the age of 55 and 60 when you reach your preservation age. There will be a number of options to consider about what to do with it.
For example, you could access part of your super balance through a transition to retirement pension (TTR). You would still be able to continue working on a casual, full-time or part-time basis.
Another option would be to choose to take your super as a lump sum or transfer it to an annuity to generate a regular income. All options will have tax implications.
Free Yourself up for a Longer Retirement
Here is a list of other points to consider when setting retirement goals for your 50s:
- The cost of leisure activities you plan to enjoy like golf or travel
- Your entitlement to government benefits such as a Carer’s Allowance
- Debt management
- Insurance needs and investment preferences
- The option of continuing to pay into your super or increasing contributions
Given the historic interest rate lows, you may want to consider how to make the best use of your assets. Many people choose to downsize their property in order to release money that they can use to enjoy the free time they have in their later years. It can be a useful way to help you feel more in control, consolidate debt and provide greater peace of mind.
All Set for a New Chapter in Your Life! Retirement is an exciting time to try out new activities and spend more time doing the things you enjoy most. A bit of careful planning now will mean you’ll be able to reap even more rewards later.