4 tips to help you start planning for retirement

Estimated reading time
 5 min

In this article

• Making your super work for you
• The FIRE retirement strategy
• Transitioning into retirement
• Investing in your golden years

When you decide to leave the workforce, it’s the start of a new chapter in your life that can bring big, exciting changes.

Planning for retirement can help ease the transition into this new lifestyle. It can help you manage your new financial situation and work out how to adapt to your shifting needs and priorities.

Even though the average age people retire is around 65^disclaimer, there’s no time like the present to start planning. And we’ve got some tips to get you started. Let’s jump right in.

1. Grow your super now

Getting on top of your superannuation now is a great strategy to ensure a financially comfortable retirement.

Why? Well, your super might become your main source of income to cover daily essentials, unexpected expenses, and planned trips and experiences (skydiving anyone?). That’s why it pays to understand how you can get the most of out of your super now, so you can benefit in the future.

If your super hasn’t been a top priority and you’ve left things a little late, that’s okay. There are some smart tactics you can use to boost your super, such as:

• Considering higher risk investments, like shares, to help grow your fund.
• Moving a portion of your savings you think you can live without for in the mid- to long-term into your super. Bonus points for being tax-effective!
• Making the most of the spousal contribution rules. You might get a tax rebate depending on how much you or your partner contribute.

If you’re a woman, then knowing how to boost your super is more important than ever. On average, women tend to end up with 25% less super than men in the lead-up to retirement.^disclaimer But by investing smartly, making extra contributions where you can, or asking your spouse (if you have one) to contribute, you can slowly (but surely!) grow your super and bridge the gap.

2. Light the retirement FIRE

There’s a hot new retirement trend that younger retirees are igniting – the Financial Independence, Retire, Early (FIRE) movement. But what is FIRE retirement?

The FIRE strategy is designed to help you save and invest to grow your wealth so you can retire earlier, like in your 40s. It sounds simple enough, but there’s more to it than that.

To have enough money to retire early and be financially independent, some people are saving a larger portion of their income to help them retire well before the typical retirement age. Meanwhile, others might live frugally and cut back on unnecessary expenses (bye-bye subscriptions) to help grow their wealth at a rapid pace so they can retire earlier.

If achieving FIRE is something you want to try, then having a goal, budget and plan in place can go a long way – but it’s always a good idea to consult a financial advisor.

3. Plan your transition to retirement

Retirement is arguably one of our biggest life changes, which is why retirement planning is so important. If you’re a few years away from retiring, or it’s just around the corner, it’s time to take the steps to transition into this next phase of your life. Here’s how:

• Reduce your work days and start taking more time out for yourself. Consider working just three or two days a week.
• Map out what you want to do next so you can work out how to save and budget for your next chapter.
• Start thinking about what will matter most to you and plan for it, like researching social groups in your local area.
• Think about what your new routine will look like and jot it all down so you can adjust to your new life stage.

Trust us – doing the thinking and planning now will help you retire stress-free and in the way you want to.

4. Invest in your golden years

Now that you’ve retired, it’s time to switch gears and keep your money working hard for you while you enjoy the serenity. Your changing needs might cause an increase in your expenses but there is different government support available to help you so you won’t have to rely only on your super or savings.

Plus, you can always look at different investment options to help you earn some extra cash while you retire. Investment strategies like buying shares or bonds can be a smart way to grow your wealth as you enjoy your new lifestyle but remember to always consider what is right for your own personal circumstances.

Read more about how to make your super work for you