Planning Ahead – 5 Tips to Get You Set for a Financially Secure Retirement

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Planning Ahead – 5 Tips to Get You Set for a Financially Secure Retirement

As the cost of living continues to grow along with the pension age in Australia, thinking about life after work can be unsettling, to say the least. There are many factors here that are outside of your control, meaning to protect your sanity and quality of life, you really need to cut back on worrying about what the future might hold. Instead, use the following five tips, and you can stop stressing about what your pension status will be like and take charge of your financial future.

1. Get Support For Your Self-Managed Super 

Many people choose a Self Managed Super Fund (SMSF) in order to gain more control over their retirement nest egg. However, they end up feeling less in control and more stressed. It can feel like a job in and of itself, and mistakes are not only costly but can turn into serious liabilities. Employing professional help from reliable SMSF Accountants will help you retain your personalized fund with minimal risks. 

2. Invest Where You Can 

You don’t need an investment portfolio bursting with countless heavily-inflated properties. At the same time, don’t let presuppositions you may have about the costs or difficulties of investing stop you from earning compound interest that will be useful in retirement. 

Focus on making investments where you can today. Your options include anything from buying stocks, gold, and precious metals to art, cryptocurrency, property, and luxury items like limited-edition bags. There are so many applications and resources available to simplify the process that it’s now easier than ever to develop a well-rounded investment portfolio.

3. Build Up A Separate Emergency Savings Fund 

This should be a rule for life. If you don’t have emergency savings already, start immediately. Gradually build up savings that will keep you covered and safe in the event of an emergency. A good rule of thumb is to save the equivalent of 3-6 months worth of your basic living costs. Since priorities change as we age, be sure to account for this in your emergency fund so you can remain worry-free in your retirement.

4. Stay Healthy and Active Now 

The easiest and cheapest investment you can make is in yourself and your health. By maintaining optimal health, you will consequently prevent spending excess money on consultations, insurance, and bills for preventable diseases in the future.  By preparing your own meals and eating fresh as much as possible, you will also potentially save on restaurant and takeaway food items as well as unnecessary things like sugary drinks. 

5. Nurture Your Relationships, Not Your Possessions  

A support network is so important for health and happiness. That’s why building great relationships are the final tip as opposed to building any other kind of tangible or financial assets. This goes for every day of your life, leading into retirement as well as throughout. People are social beings, and despite the grievances, we may have about the daily grind, it is a major source of social connection for many people. 

Numerous studies have shown that those who maintain social connections usually experience a happier retirement than those who rely only on their work for socializing or who lead more isolated lifestyles. Don’t wait until retirement to make up for lost time getting to know your family and acquaintances, nurture your networks and loved ones today and every day.

Planning for retirement does not need to be a daunting process. See how many of these tips you can implement today and you’ll be on the right track to security before you know it!

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