Planning for retirement
What are your retirement goals? The concept of retirement means different things to different people. Whether it is the opportunity to travel, spend time with family, start a new project, or dabble in a mixture of all of the above, retirement is a time to enjoy and be free of financial stress. It can be a major life transition and we need to be honest about what our goals are and what trade-offs we are willing to live with. Even if retirement seems a while away, it is good to have a plan. Here are some tips to help you plan for retirement:
1. Start saving early and consistently as every little bit helps. Compound interest adds up over time so the sooner you start the better.
2. Calculate your retirement expenses to estimate your future needs: use some of the tools mentioned on our website to calculate how much you might need in your budget and what your retirement income could look like.
3. Diversification of the investments in each of FireSuper’s investment options means your investments are not stored in one ‘basket’ and are not impacted by the performance of any one company or industry.
4. You can make voluntary contributions to FireSuper, though they are subject to certain conditions. More information can be found in the Product Disclosure Statement.
5. Factor in inflation when considering the cost of living and its potential impact on long-term retirement income. Some members choose to become “deferred members” and keep their savings in FireSuper even after leaving service.
6. Consider possible large expenses and health care treatments you may need after retiring.
7. Regularly review and adjust your retirement plan as needed. The most common preference is to think about finances and insurance annually. Key calendar dates are a good reminder, such as the change of year.
Linked below are some tools and guides which might be relevant to members who are heading into retirement.
13 August 2024