The Sunshine Coast is one of Australia’s most popular retirement destinations. Flocks of grey nomads and silver surfers come to bask in the lifestyle of Sunshine Coast living. However, the Sunshine Coast is expensive and it is important to have a proper wealth management plan for your retirement in place to maximise your quality of life and retirement account.
Sources of Retirement Income
Before you start planning which of the top 10 Sunshine Coast cafes you’re going to visit on your first day of retirement, take stock of where your income comes from.
Retirement income may come from:
- Income from superannuation
- Long term investments outside super
- Age Pension
- Reverse mortgages and home reversion
- Selling the family home
- Working part-time
You may have one or all of these sources which you can combine to make your money last longer. It is also worth noting that one income source may affect another. For instance, selling your home may affect your Age Pension.
Assess your financial situation
The first step is to work out how much money you have now and will have in your financial future. As we mentioned above, you also have to know where it will come from. When you create a plan for your retirement, some things to make note of include:
- What assets you have that hold value including houses, savings, investments, etc.
- How much are they worth
- How much superannuation do you have and when can you access it
- If you are eligible for the Age Pension
Make a long-term financial plan
You then have to think about how your needs will change throughout the rest of your life.
The Sunshine Coast is expensive and you’re probably not going to start working again, not that you want to. Your plans may be to travel or start a new hobby. You may also want a new car or renovations. Down the line, you may also move into a retirement village.
A financial planner can help you to determine your financial goals and how you can use your range of income sources to sustain you throughout your retirement.
A financial planner that specialises in wealth creation can also help you to explore ways to improve your income in retirement with their financial products and services.
Make Your Money Last
It is equally as important and difficult to make your money last in retirement, particularly on the Sunshine Coast. The lifestyle can catch up with you if you’re not careful and you’ll find yourself pinching pennies later in your life.
Some basic ways to make your money last longer include:
- Budget – A simple way to make your money last longer is to watch your spending.
- Take advantage of your entitlements – Even if you don’t get the Age Pension, you may be eligible for other benefits, such as travel concessions, cheaper medicines and reduced council and water rates.
- Work part-time – Part-time work is a good option to ease into semi-retirement before fully retiring.
- Tax incentives – if you are aged 55 or over you may be able to take advantage of a transition to retirement strategy.
- Government incentives – the Government has incentives to encourage people to work past the pension age.
However, some ways that you can make your money stretch include:
Getting financial advice
Regardless of your situation, you should explore what financial services are out there purely for your own peace of mind. Speaking to a financial advisor on the Sunshine Coast, who manages affluent clients on a daily basis, is the smartest way to begin planning for retirement. You can receive estate planning and superannuation advice well before you retire so that you can prepare while you have active income from your job.
The average life expectancy of people is increasing with the advancement of medicine and technology so relying on an outdated retirement model of only relying on Age Pension or superannuation is badly informed.
It is a good idea to invest some of your money in assets that will increase in value over time such as shares and property. This will ensure that capital will grow over time and keep pace with variables like inflation and your income needs. While it may seem like a daunting venture, getting some investment advice will ease your mind.
Speaking to an investment management specialist about investing safely and smartly across a range of investment types will greatly benefit you in the long run.
If you’d like to find out more about retirement planning, wealth creation and investment strategies, our team at Ethica Private Wealth Specialists may be able to help you achieve your financial goals with a 2 Hour Free Consultation.
This information has been provided as general advice. We have not considered your financial circumstances, needs or objectives. You should consider the appropriateness of the advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek the assistance of an authorised financial adviser before making any decision regarding any products or strategies mentioned in this communication.