Will you be a honeymooner, routine follower or a relaxer in retirement?
The first year of retirement is a time of transition, but if you can successfully adjust to the major changes that come with not working, you can reap big rewards.
Some of the changes may include adjusting to no longer working full-time and earning a regular salary, keeping your mind active without the stimulation of work, and planning to ensure your money can go the distance in retirement.
The three paths in early retirement
Renowned retirement researcher Professor Robert Atchley identified a number of ways people react to leaving work permanently, and split the period immediately after this into three possible paths:
How to prepare
To prepare for retirement, it’s a good idea to begin thinking about it and planning for it before it is upon you.
You might like to consider easing into retirement by reducing your working hours or moving to part-time work before you retire.
You should also try to determine what sort of retirement you want, using the three paths above as a guide, and use the time before retirement to start exploring your goals.
For example, if you think you’d like to caravan around Australia in retirement, hiring a caravan for a short trip might be a good idea ahead of buying one. Likewise, if you’re considering a sea or tree change, renting in the area first is a good way to try the lifestyle before selling up.
To help achieve your retirement goals, you’ll need to take stock of your finances. If you find your super needs a boost, now is the time to act – especially with changes to super that are coming from 1 July this year, which will affect caps on contributions.
If you’d like help with planning for your retirement, speak to us today.
October 19, 2017
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The information provided on this website, including the material and contents provided in the website publications, are informative in nature only and you should not act specifically on the basis of this information alone. It should not be used as a substitute for legal, business, accounting, tax, financial planning or other professional advice. If expert assistance is required, professional advice should be obtained.
Paul Baggetta is the Founder & Principal of Baggetta & Co. Paul Baggetta has been a Taxation Accountant since 1981, a Financial Planner since 1998, and in 1993 qualified as a Real Estate Licensee, holding a Triennial Certificate (currently not trading) and operated his own Real Estate business for property investment clients for over 5 years as a second business.
Financial planning services are provided by Paul Baggetta as an Authorised Representative (No. 261469) of Capstone Financial Planning Pty Ltd. ABN 24 093 733 969. Australian Financial Services License No. 223135.
Taxation & Accounting services are provided by Paul Baggetta as a Registered Tax Agent (No.61487008) and is a Member of SMSF Association, FIPA & NTAA.