Evaluate Retirement Readiness | Maximise Your Money in your 50s and 60s - Day 1

MAXIMISE YOUR MONEY
5-DAY CHALLENGE

SORTED MONEY MONTH
1 – 31 AUGUST 2023

Maximise your money in your 50s and 60s: 21 – 25 August

Day 1: Evaluate your retirement readiness

As retirement begins to loom on the horizon, it’s an exciting time filled with dreams of relaxation, travel, and pursuing hobbies, but it’s also a critical period for financial planning. Visualizing what you want your retirement to look like is an essential first step in this journey. By setting clear goals and understanding your financial needs, you can stay motivated and on track to achieve the retirement of your dreams.

Challenge yourself to be retirement ready with these top tips from expert financial advisers:

Visualise what you want your retirement to look like

Take some time to envision your perfect retirement lifestyle. Consider where you want to live, how you’ll spend your days, and the experiences you wish to have. Once you have a vivid mental picture of your retirement, you can start working out how much it will cost you and how much you need to save. Keep that picture in your head to stay motivated and on track.

Plan the time horizon for your investment beyond the day you plan to retirement

One common misconception is that retirement planning should only consider the time up to age 65. In reality, your investments will continue to grow even after retirement. With the potential of living 20 years or more in retirement, it’s essential to have a clear investment timeframe. Longer investment horizons allow for more growth and compounding, ensuring your money lasts throughout your retirement.

As retirement approaches, reassess your risk tolerance and consider adjusting your investment strategy accordingly. Balancing growth and stability become increasingly important during this stage. While growth-oriented investments might have been suitable during your earlier years, a more conservative approach may be necessary to protect your assets in retirement. Seeking the guidance of a financial advisor can help you align your investment strategy with your comfort level and long-term goals.

Evaluate your retirement savings – are you on track?

Regularly evaluate your retirement savings to determine if you’re on track to meet your financial goals. A financial advisor can help you assess your retirement readiness by analyzing your current financial situation and estimating future income needs. By understanding where you stand, you can make any necessary adjustments to stay on course.

Coordinate spousal retirement plans

For those with a spouse or partner, it’s essential to coordinate retirement plans. This involves aligning retirement timelines and creating a comprehensive joint retirement strategy. A professional financial adviser can assist in maximizing both partners’ resources and ensuring a secure financial future together.

The pre-retirement years are a critical time for evaluating your retirement readiness and maximizing your financial preparedness. By visualizing your retirement dreams, calculating your needs, and extending your investment horizon, you can set yourself up for a secure and fulfilling retirement. With careful planning and proactive decision-making, you can make the most of your money and enjoy a comfortable retirement journey.