This is especially true for retirees who are largely reliant upon their financial assets to fund their lifestyle. As a result, advisers are fine-tuning their advice frameworks, and seeking investment strategies better matched to client goals and expectations. With the new year upon us, we explore the importance of goal-setting and retirement planning.
Boost your income in retirement
As the baby boomers begin to wind back their work commitments, an increasing number of Australians will need to draw on financial assets as a source of income to supplement any government support. In the context of constrained economic expansion and people now living longer, retirement planning becomes critical.
A few things to consider:
- Once you stop working, how will you meet your cash-flow needs to cover everyday expenses such as food and energy?
- What kind of lifestyle do you want to lead? How do you visualise your activities in the early stage of retirement - going to the cinema every month or perhaps an overseas holiday every year?
- Do you anticipate setting some money aside to support long-term aspirations such as providing financial assistance to grandchildren or making a large contribution to some other cause close to your heart?
Keep your investments on track
Planning for retirement is an ongoing process that requires periodic review. Throughout your working years, your planning may progress through a series of stages in which you will clarify your investment objectives, evaluate your progress and make decisions to build confidence that you are on track to reach your investment targets. Even after retirement, with market conditions and your personal circumstances subject to change, you should periodically review your investment strategy to ensure you remain on track to realising your dreams.
Entering the new year, we encourage investors to reassess what they want to achieve from their investments, and to take action by speaking to their financial adviser to bring about these changes. While thinking of investing for retirement can seem overwhelming, it should encourage you to map out a clear path to success.