Retiring in 2021 is an exciting prospect for many Australians. Although it can be easy to get swept up in the excitement of the actual retirement prospect itself, it can be easy to forget about the practical considerations you should make before retiring in 2021. Oak Advisory is here to support you and your retirement plans with the most practical retirement advice Perth has to offer. We’ll outline the four steps you need to take before retiring in 2021.
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Create A Timeline
Setting a timeframe for when you would like to retire and implementing some milestones along your retirement path will help keep you on track with your retirement plans. Understanding the financial milestones you need to achieve before getting to retirement and how much longer you will likely need to work to achieve those milestones is critical in retirement planning.
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Estimate Expenses
Developing a comprehensive plan of your current living expenses, returns on investment, and how much money you will need for a ‘fun fund’ will help tremendously in retirement planning. Understanding current costs will give you clear guidelines on your spending habits and how much you will sustainably need to enjoy a fulfilling life.
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Optimising Your Income in Retirement
Having an unmistakable idea of the return of your investments and the after-tax rate of these investments’ return will give you a clear picture of sustainable income. The after-tax income from these assets will help determine how much money you can possibly spend to live comfortably yet sensibly concerning your retirement fund.
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Assess Risk
Assessing risk tolerancebefore retirement is critical. This typically involves creating an investment portfolio and understanding risk aversion, whether it be self-managed or managed by your financial advisor.
So, there you have it; the 4 key steps you need to take before retiring in 2021. Ensuring that your retirement plan leaves you feeling safe and comfortable financially for your retirement is essential. Over to you to go forth and start planning!
