As we wrap up the year, we bring you a three-part series on transitioning into retirement and some effective retirement strategies.
For soon-to-be-retirees, 2020 and 2021 threw a decent spanner into the mix.
Retirement plans were delayed.
Some returned to the workforce.
Super balances took a dive, then rose back up again.
It was a bumpy ride.
So now, many Baby Boomers may be putting their retirement plans back onto the table.
So, let’s start by looking at the transition to retirement.
Stopping work does not necessarily mean the cessation of your income. The reality is that it should be far from it.
Stopping work, and the consequential lack of a steady weekly paycheck is one of the hurdles retirees find the most confronting.
What has been a regular component of their entire working lives, all of a sudden ceases to exist.
However, just because an employer is not paying your weekly wages, your regular weekly wage does not need to dry up.
Transitioning to Retirement
For many, the transition to retirement starts with a reduction in hours from full time to part-time.
Transitioning to fewer hours is a great way to begin the adjustment in reducing both your full-time hours and full-time pay.
Not only will it allow you to adjust to new working hours and less pay, but it will also see the beginning of a new way of life.
Of retirement bliss!
So let’s look at our 3 tips to start a positive transition to retirement.
Transitioning to Retirement tips
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Rework your budget
Now is the time to look at your existing budget and start implementing some changes. Divide your spending into essentials and non-essentials.
Where can you cut back? What items are non-negotiable? This is a good process to decide on what you can and cannot live without.
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Look at alternative revenue streams
Whilst your 9-5pm working day may be changing, it is worth looking at alternate revenue streams in which to pull an income such as broadening your investment portfolio.
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Revisit your retirement plan
You may well not have looked at your retirement plan for some time. Now is the time to dust it off and revisit your goals and expected retirement income. Where possible you want to maximise your age pension entitlements and investments.
If you are considering fast forwarding your retirement in 2022, contact our team to revisit your retirement plan and ensure you are on track to a comfortable retirement and financial freedom.
