By Ian Byrne CFP, GRW Advisory
Retirement can be a rewarding chapter in life, but even with large amounts of wealth it requires sound planning to ensure a comfortable and fulfilling experience.
Here are six essential and simple tips to help you make the most of your golden years:
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- Plan Ahead Financially:
A solid financial plan is the cornerstone of a successful retirement. Determine your initial capital drawdown requirements (e.g. new car, update the kitchen or relocation), your expected living expenses, the most tax effective way to source your income and create a plan that aligns with your lifestyle goals.
Consider factors like healthcare costs, long-term care needs, potential inflation, as well as the fun things like travel, holidays and hobbies. If you’re not certain where to start, consult an expert in retirement planning.
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- Healthcare:
As you age, health plays an increasingly crucial part of your lifestyle and can determine success in retirement. Not only can healthcare costs increase but your ability to do things and enjoy life can rapidly diminish if not taken care of properly.
We recommend at the start of your retirement to consult your GP and get a thorough health check-up and testing done. This will give you a good idea of what shape you’re actually in, plus a baseline to check against throughout the future.
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- Strategise:
It has been my experience that many wealthy individuals have a number of entities and tax structures that have grown organically for various reasons throughout their working life. Maximising the benefits of these or simplifying and pruning them may make sense as you enter retirement.
Ensure you understand your taxation and investment strategies and the best options to enhance your retirement years. In many cases, maximising your superannuation savings makes sense to secure a tax-free retirement income. With close to $2mill per person allowed to earn tax free income and no CGT in pension phase, at 5% that could equate to ~$200k+ income per annum tax free, (without even counting the extra benefits of franking credits or realised growth potentially on top). Consult with your taxation professional and financial planning expert to optimize your position.
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- Identify & Pursue Your Passions:
Retirement is an opportunity.
Explore your interests and hobbies. Whether it’s travel, volunteering, learning a new skill, or spending time with loved ones, understand what is important to you and perhaps most significantly, look to set timeframes to pursue activities that bring you joy and fulfillment.
Unfortunately I have witnessed clients enter retirement full of vim and vigor and life, but no set plans on this aspect and get caught up in the ‘day to day living’, then all too quickly the days fly by and they become too old or infirm to enjoy the life they had hoped to achieve, (cue Pink Floyd’s epically true “Time” anthem).
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- Stay Active and Social:
Maintaining an active lifestyle is crucial for both physical and mental well-being. Engage in regular exercise (yes, really. Your old coach or gym teacher was correct, “Use it or Lose it” is real), join social clubs, volunteer, or challenge yourself mentally and take up new hobbies.
Staying connected with friends and family or contacting old long-lost acquaintances can enhance your overall quality of life, help combat loneliness, add fun and build great new memories in amongst the fond older ones.
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- Plan for The Next Stage:
The dreaded full-stop.
No one really likes talking about it, but you’re smarter than average aren’t you? While you’re mentally healthy, get your legal and financial affairs in order and consult a good Estate Planning Specialist legal professional (not just any lawyer).
This is not only your Will and potentially Testamentary Trusts for your beneficiaries or other matters that may need clarifying on your death but also your wishes if you lose mental capacity and who you trust to help you via an Enduring Power of Attorney and any Advanced Health Directives.
Aside from giving you peace of mind that your wishes are documented, it can avoid major issues – great fortunes have been lost in unnecessary costly legal disputes where these have been unclear or incomplete or left to interpretation.
Pretty simple, right? Following these tips can help you enjoy a fulfilling and secure retirement but are only the tip of the iceberg, particularly where strategies are concerned.
Early planning and proactive measures can significantly impact your retirement experience, and seeking the right guidance in a proactive manner with a range of professionals who can work together for your best interests is crucial.
If any of the above has struck a chord or rung particularly true for you, feel free to reach out any way you wish (LinkedIn, telephone, email or other). I have clients all over Australia and the world, and always happy to have an initial discussion without cost or obligation.
*The above is general information only and not personal advice. For further information or a confidential discussion, please contact the author directly.
