What is the right strategy around how to maximize your savings before retirement? Maximizing your savings before retirement can be a confusing process. So, what is right for you and your circumstances?
Often people just aren’t sure of what they need to be doing well before or when approaching retirement. It can be stressful, especially for people who have left it a little late or now realize they do not have enough money in their super to retire on.
If you are in your mid 40’s to early 50’s your in the best position to be maximizing your savings in the years before retirement.
But for those already in their 50’s, we also have some good news. You can still have a huge impact by taking action in the five to ten years before retirement.
HINT: Finding the right investment strategy is even more critical though.
Pre-retirement Planning Steps to Maximize your Savings before Retirement.
- As a starting point, pre-retirees who want to improve their position should pay off their debts as soon as possible.
- Make sure that credit card and personal loan debts are extinguished first. Then of course, paying down the mortgage as quickly as possible is vital.
- Where you should be growing wealth? One example – Superannuation and salary sacrificing.“If someone chose to salary sacrifice $10,000 a year to super who was earning $75,000 a year – that would reduce their take-home pay by approx $7000 a year therefore a tax saving of approx $2,000 a year as well. this may seem like a small amount but the compound affect of this contribution to your super balance can be massive.
A small sacrifice now can mean huge benefits later 🙂TIP: Is your super in an aggressive mix or a conservative structure? This too can have an affect on your super balance at retirement.
Maximizing your savings in the years before retirement – cont.
4. Pre-retirees will need to be realistic or get help to forecast what they can live off during their retirement. How long they may be retired for (all things going to plan) and how much they are likely to generate in returns.
P.S. In some cases, investors may need to take on additional risk to achieve the kinds of returns they’re looking for. This will depend on their ‘risk aversion’ tolerance.
Seeking advice is the most effective way to find the right balance between returns and risk. In fact, it is essential.
Additionally, our resources are available to you through our tools and strategies and can help to forecast expected returns for certain portfolio mixtures that suit your retirement goals and aspirations.
If maximizing your savings before retirement is important to you and protecting your wealth correctly as a whole wealth strategy, call us on 08 7111 0022 or email firstname.lastname@example.org to book a more holistic review of your wealth and goals.
Sooner or later we all want to retire with enough money and room for an abundance of options. This is a vital part of a ‘whole wealth’ strategy that will have you feeling at peace and not fearful of the future. And we all want that!
SHARE THIS STORY
Disclaimer: This article is information only. It is not intended to imply any recommendation about any financial product(s) or to constitute financial or tax advice. The information in the article is reliable at the time of distribution, but may not be complete or accurate in the future.