Super Checklist for over 55’s

How much is ENOUGH?

The number one question you should be asking prior to doing anything with your super. This number will dictate how much you need to contribute to super. How you invest your money and the level of risk you need to accept.

Many have no idea what they will need to fund their retirement lifestyle. It’s akin to building a house without plans.

How much money do you need to fund the rest of your life?

Are taking enough/not enough investment risk to achieve your desired retirement?

A very difficult question to answer if you don’t know the answer to “How much is ENOUGH?’. Your “ENOUGH” will drive the minimum level of risk you need to take to get the job done. Sure, you might take more risk than you need to, but that’s a conscious decision.

Imagine you have “ENOUGH” or on track to have “ENOUGH” but don’t know it. What if you’re taking on more risk than you need? Wouldn’t you want to know that?

Have you rebalanced?

Once you know the level of risk you need to take. The general movement of investment markets will mean your investment allocations will change. Left unchecked, this will come back to bite you in the arse.

You should be at least reviewing this once to twice per year. You need to be unwavering when it comes to your rebalancing. Don’t hesitate, just do it.

In good time and bad times. You’ll benefit in the long term.

Let’s say with investments markets surging ahead over the last year, your shares/property investments have moved from 70% to 80% of your portfolio.

Your now taking more risk than perhaps your comfortable with.

Given this would have transitioned into a great result over the last 12 mths. We know investment markets do not go up in a straight line.

It’s critical to regularly assess your investments and make adjustments back to your ideal level of risk.

Something many people ignore when investment markets are going well!

Check your employer contributions

Your employer pays your 9.5% into your super fund. It’s worth checking that all the super you are entitled too is paid into your super fund.

Some employers pay your super contributions on a monthly basis and some quarterly. Be aware of this when you are checking.

Make sure your employer has paid the correct amount of contributions for the year.

Do you have a contribution plan?

Yes, that’s right.

With so many changes to superannuation contributions you need to have a plan. Educate yourself on the type of contributions available.

ALSO READ: The over 55’s guide to super contributions for building your nest egg

Determine what super contributions you’ll be able to take advantage of. Put a plan in place to maximise these over the remainder of your working life.

The timing of your contributions is critical!

Are you maximising your opportunities to build your nest egg?

Is your superannuation fund flexible enough to manage your transition to retirement safely?

Many are blind to the changes which occur between pre-retirement and their retirement years.

The superannuation system is built for accumulation. Yet, there is little education about how you prepare financially for your retirement years.

What worked for you while working is not going to work for you in retirement. As you move from an accumulation approach to a decumulation approach.

The way you approach it is vastly different.

Your superannuation fund needs enough flexibility to manage sequencing risk, inflation risk and market risk as you approach retirement and transition into retirement.

ALSO WATCH: Investing for Retirement 101

Hint: Many people are blind to this change and many super funds do not manage this well!

Have you nominated a beneficiary?

The last thing you want is your loved ones fighting over your super. Or for that matter creating more work than you need to for your executors of your will.

Check your nomination and make sure it is going to the right person.

Do you have more than one super fund?

If you have more than one super fund you may be better off consolidating your super into one fund.

Critical checkpoints if you are up to 5 years from retirement

Now is the time to nail your retirement plan. Leave it and it will be more costlier, more risky and harder to achieve.

#1 How much money do you need to live the rest of your life?

We are swamped when it comes to thinking about the future and how to take advantage of the myriad of changes.

The number one question on people’s minds is “How much money do I need to fund the rest of my life?’ or “Will I be okay in retirement?”.

The answer to this question unlocks the strategies, tactics and investments you will use to fund the rest of your life.

What if you knew you had enough money for the rest of your life? Would you retire earlier? Would you take on less risk with your investments? Would you help out your family more while you could? Would you do more things?

What if you knew a few small changes would get you the lifestyle you desire in retirement? How would that feel?

Knowing your “ENOUGH” number is the key to your retirement roadmap.

After all, life’s not a rehearsal!

And you don’t want to be the richest person in the graveyard!

#2 30 second Retirement Income Plan

Sure, you may not be retired just yet. But you need to be thinking about how you are going to fund your retirement income.

It’s all in the planning. Fail to do this and you may not be able to retire when you planned too!

Sadly over 50% of people don’t retire when they had expected too.

It’s critically important to start planning your transition now.

So that no matter what investment markets are doing or whatever is going on in the world. The decision to retire is solely in your hands.

We refer to the three buckets. Enough for emergencies, enough in your income bucket and the rest in your growth bucket.

ALSO Watch:30 second Retirement Income Plan

#3 Risk Management

As you approach your retirement, it’s no longer about maximising returns and accumulating assets. Although there will be fortunate people that will still be building a legacy.

One strategy you should be deploying as you approach retirement is risk management.

Successful retirees manage this well or choose to work alongside experts to help them.

So what is risk management?

It’s how you manage market risk, inflation risk and sequencing risk within your investments.

Understanding the nuances between your working years and your retirement years.

The way you manage these three risks will dictate your investment experience through retirement.

Are you managing your money that’ll allow you to live your best life?

It’s hard to work out if you’ll have enough money for retirement!

You may have super, investments and/or a good income, but most people have no idea what it all means or what sort of financial future awaits them.

If you don’t get this right you don’t get to experience your best life in retirement.

At Jigsaw, we feel your frustrations and know you’re striving to live your best life and don’t want to worry about whether you’ll be okay in retirement. Because of this we’ve developed a framework for you to use so you too can experience your best life. Knowing how much money you need to give you the freedom to live your life, minus the complexity, confusion and misinformation.

That’s exactly what our “Retirement Breakthrough Sessions” are designed to do.  Help you work out your “ENOUGH” number and the exact steps you should be taking with your money so you can live the best life possible.

Schedule your complimentary “Retirement Breakthrough Session” here.

Live your best life in retirement!

Glenn Doherty – CFP – Retirement Planning Specialist | Retirement Planning made simple for over 55 white collar professionals

We conduct virtual client meetings!

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