Planning for Retirement in Your 50’s and 60’s

Planning for Retirement in Your 50’s and 60’s.

When you’re in your 50’s there is nothing that scares you more work-wise that the imminent threat of retirement.

When you are in your 50’s your sole emphasis should be on adding to your super contributions to boost your retirement savings, retirement education, debt trimming, and saving or investing your money and not on retirement.

Retirement timing Since retirement is inevitable, you’ll get to a certain point where you’ll find yourself thinking of when or which is the most suitable age for you to retire.

The determinant of when you intend to retire or when you actually retire is the assets you own that will support you

through your retirement period. The longer you postponed your retirement the smaller the asset base required to support your retirement or the higher the annual income you can enjoy while in retirement. According to the financial planner Rockhampton the number one rule of retirement should be, “don’t be in a hurry”, unless there are health issues or other factors beyond your control.

For most people going straight into retirement might have some unwanted results hence the financial planner Rockhampton recommends that you do it in stages. this approach will also give you more time thus your super keeps growing.

Review your retirement plan The more often you review your finances, the more likely you are to make progress and reach your goals. according to the financial planner Rockhampton a regular review of your investment combination in your retirement and consider whether you need to start de-risking your portfolio and move away from aggressively invested growth options. during the reviews, you should take you time to consider building a sustainable portfolio with an emphasis on high incomes and reduced risks.

Consider a transition to a retirement strategy As per the financial planner Rockhampton If you want more financial flexibility, a change to retirement strategy or TTR strategy, maybe worth considering especially if you are aged between 55-60 and still working, it will enable you to:

• Receive super contributions – this ensures a deposit of funds occurs for funds that have been withdrawn.

• Pay less tax – If you are 60 or older, your TTR pension payments are tax-free. If you are 55 to 59, your pension is taxed at your marginal tax rate, but you get a 15% tax offset.

• Retire with ease – you can start planning for your retirement life beforehand.

Using a TTR pension to grow your super and pay less tax in the lead up to retirement works best if you are 60 or older and a mid to upper-income earner.

Before deciding on a TTR strategy it’s worth talking to a financial planner to under if this strategy is right for you.

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