Retirement Checklist; 6 Things You Need to Do
February 7, 2022 1:59 AM Subscribe
Retirement Checklist: 6 Things You Need to Do If you’re only a couple of years out from retirement, you’ve probably already given some thought to what you can see yourself doing once you finish work.
It might be traveling, downsizing your home, taking on volunteer work or just enjoying more time doing what you love in the garden or with your hobbies.
But before you hang up your briefcase, there are some practical steps you should take to ensure your affairs are in order and the following is a checklist of 6 things to take care of before you retire.
Pre-retirement checklist
The 6 main areas that need to be reviewed when you’re approaching retirement are:
◦ Superannuation
◦ Debts
◦ Insurance
◦ Finances
◦ Entitlements
◦ Will
Superannuation
You will be relying a lot on your super in retirement, so estimate the likely amount you will have and decide whether you want to receive it as a lump sum or in regular installments. And if you don’t think you will have enough to provide you with the retirement lifestyle you’re envisaging, consider boosting your balance with increased salary sacrificing through your job or by opting for a higher-risk, higher-returns investment strategy. But remember to always get professional advice when considering such a move.
And if you manage your own super, you may want to consider handing the time-consuming administration and compliance responsibilities over to a super fund, unless you plan to devote more time to managing your SMSF in retirement.
Debts
One of the largest debts most people have is their mortgage, so if you still owe a lot on your home loan when approaching retirement, consider strategies such as these to help pay off your mortgage sooner:
◦ Increase salary sacrificing through your job
◦ Arrange with your lender to make extra mortgage repayments
◦ Consolidate all your debts into your lower-interest mortgage account
◦ Deposit any extra funds you receive into your mortgage (i.e. inheritances, work bonuses, lottery windfalls etc).
Insurance
Now is also the time to check your insurance to make sure you have the right policies in place and the appropriate level of cover for moving into retirement.
Review your life, health, vehicle, house & contents and funeral insurance and make any necessary updates or changes. And make sure your family knows where your insurance portfolio can be located.
Finances
Review your finances including investments and savings with your financial planner or advisor. Things to discuss should include;
◦ Growth and investment options
◦ Tax implications
◦ The amount of money you will need in retirement
◦ Strategies for achieving that amount if you don’t have enough.
Entitlements
Start researching what government assistance will be available to you in retirement. There are a range of payments and services which you may be eligible for, so identify what these are and start applying as early as you can.
◦ Age pension – a fortnightly payment, over which you can earn a specified amount and which you can apply for up to 3 months in advance. It entitles you to a range of discounts on gas, electricity, water, council rates, drivers licence and registration. If you are a property owner, it also gives you access to the low-interest Pension Loans Scheme.
◦ Pensioner concession card – this provides discounts on a range of expenses including PBS-approved pharmaceuticals and gives you access to the Concessional Medicare Safety Net thresholds.
◦ Seniors card – offers discounts and deals at thousands of participating businesses in each state and territory, along with public transport concessions.
Most government services can be accessed online through the government’s MyGov platform, so start setting this up and learning how to use it before you actually come to need it. With a MyGov account, you can link to Medicare, Centrelink, the ATO and your MyHealth record.
Will
Everyone needs a valid will to ensure your wishes are carried out and to prevent your estate from being tied up in probate. Now’s the time to review your will to ensure it’s valid and legal and to add any updates that may be required due to changes in circumstances.
Give a copy to your beneficiaries, including your partner and family and make sure they understand your end-of-life wishes. And create a folder of key documents such as your financial documents and insurance policies and make sure the person who will be managing your estate has access to it in both digital and hard copy format.
Unfortunately, many people today are deciding they simply don’t have enough to retire on and are opting to remain in the workforce for longer.
So if you don’t want this to be you, being proactive about your retirement now can help you avoid having to work when you’d rather be enjoying the best years of life.
Paying off existing debts, paying down your mortgage and boosting your super are all good steps to creating a more comfortable retirement. So if you’re still a couple of years away from your last pay cheque, now’s the time to start making it happen.
Pre-retirement checklist
The 6 main areas that need to be reviewed when you’re approaching retirement are:
◦ Superannuation
◦ Debts
◦ Insurance
◦ Finances
◦ Entitlements
◦ Will
Superannuation
You will be relying a lot on your super in retirement, so estimate the likely amount you will have and decide whether you want to receive it as a lump sum or in regular installments. And if you don’t think you will have enough to provide you with the retirement lifestyle you’re envisaging, consider boosting your balance with increased salary sacrificing through your job or by opting for a higher-risk, higher-returns investment strategy. But remember to always get professional advice when considering such a move.
And if you manage your own super, you may want to consider handing the time-consuming administration and compliance responsibilities over to a super fund, unless you plan to devote more time to managing your SMSF in retirement.
Debts
One of the largest debts most people have is their mortgage, so if you still owe a lot on your home loan when approaching retirement, consider strategies such as these to help pay off your mortgage sooner:
◦ Increase salary sacrificing through your job
◦ Arrange with your lender to make extra mortgage repayments
◦ Consolidate all your debts into your lower-interest mortgage account
◦ Deposit any extra funds you receive into your mortgage (i.e. inheritances, work bonuses, lottery windfalls etc).
Insurance
Now is also the time to check your insurance to make sure you have the right policies in place and the appropriate level of cover for moving into retirement.
Review your life, health, vehicle, house & contents and funeral insurance and make any necessary updates or changes. And make sure your family knows where your insurance portfolio can be located.
Finances
Review your finances including investments and savings with your financial planner or advisor. Things to discuss should include;
◦ Growth and investment options
◦ Tax implications
◦ The amount of money you will need in retirement
◦ Strategies for achieving that amount if you don’t have enough.
Entitlements
Start researching what government assistance will be available to you in retirement. There are a range of payments and services which you may be eligible for, so identify what these are and start applying as early as you can.
◦ Age pension – a fortnightly payment, over which you can earn a specified amount and which you can apply for up to 3 months in advance. It entitles you to a range of discounts on gas, electricity, water, council rates, drivers licence and registration. If you are a property owner, it also gives you access to the low-interest Pension Loans Scheme.
◦ Pensioner concession card – this provides discounts on a range of expenses including PBS-approved pharmaceuticals and gives you access to the Concessional Medicare Safety Net thresholds.
◦ Seniors card – offers discounts and deals at thousands of participating businesses in each state and territory, along with public transport concessions.
Most government services can be accessed online through the government’s MyGov platform, so start setting this up and learning how to use it before you actually come to need it. With a MyGov account, you can link to Medicare, Centrelink, the ATO and your MyHealth record.
Will
Everyone needs a valid will to ensure your wishes are carried out and to prevent your estate from being tied up in probate. Now’s the time to review your will to ensure it’s valid and legal and to add any updates that may be required due to changes in circumstances.
Give a copy to your beneficiaries, including your partner and family and make sure they understand your end-of-life wishes. And create a folder of key documents such as your financial documents and insurance policies and make sure the person who will be managing your estate has access to it in both digital and hard copy format.
Unfortunately, many people today are deciding they simply don’t have enough to retire on and are opting to remain in the workforce for longer.
So if you don’t want this to be you, being proactive about your retirement now can help you avoid having to work when you’d rather be enjoying the best years of life.
Paying off existing debts, paying down your mortgage and boosting your super are all good steps to creating a more comfortable retirement. So if you’re still a couple of years away from your last pay cheque, now’s the time to start making it happen.
This post was deleted for the following reason: this appears to be SEO spam for an insurance agency -- taz
That web site is an Aussie insurance company so take it's advice with a grain or two of salt :-)
Sorted is a NZ govt initiative that tries to encourage financial literacy (without something to sell). There are guides there for retirement and for many other change of life - American readers should replace "401K" or "roth IRA" for "kiwisaver" (they are similar but the tax treatments are better in the US)
posted by mbo at 2:45 AM on February 7, 2022
Sorted is a NZ govt initiative that tries to encourage financial literacy (without something to sell). There are guides there for retirement and for many other change of life - American readers should replace "401K" or "roth IRA" for "kiwisaver" (they are similar but the tax treatments are better in the US)
posted by mbo at 2:45 AM on February 7, 2022
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I know these people exist, it's just a completely different world than the one I have access to.
posted by AlexiaSky at 2:27 AM on February 7, 2022