Getting ready for retirement
Written on the 6 July 2018 by Arrow
If retirement is something you are starting to think about, now is the time to put a plan together to ensure that you achieve the satisfying and meaningful retirement that you aspire to.
While the most enticing aspect of entering into retirement is the prospect of being free to do as you wish, it can be challenging to adjust to all that free time and to navigate the changes associated with leaving the workforce. It's important you continue to fill your days with activities that give your life meaning and make you feel valued.
Maybe you have always wanted to pursue a certain hobby and never had the time. Whether it's learning a language, picking up an instrument or unleashing your creative side, retirement can be the time to pursue your passions.
The other thing to remember is that you have a wealth of knowledge in your field, and it can be very satisfying to pay that forward. Why not consider volunteering a few days a week at an organization that might be in desperate need of your skillset or mentoring someone who is just starting out.
Funding your lifestyle
It might be worth considering a gradual approach to ease into retirement. Rather than leaving the workforce altogether, you may be able to reduce the hours you work. That way you still have some income coming in, and a staged approach to retirement can also help with the mental adjustment to leaving the daily grind behind.
Transition to retirement as a strategy
To do this, you must have reached preservation age, between 55-60 depending on when you were born, and have started a super account-based pension.
The table below will assist you in working out your preservation age.
While TTR pensions can help increase your flexibility and may have tax benefits while you're still working, they do involve drawing on your retirement savings, therefore leaving less for when you retire. Further, they may not be beneficial in all circumstances, are subject to restrictions and can be complex, so it is best to speak with an adviser before making a decision.
Having a plan for how you ease into retirement is more important than ever. If you need help creating one, come have a chat with us to discuss your options.