Financial planning for over-50s: what you need to know now
- WYZA Life
If you’re over the age of fifty, there is a lot you need to know about financial planning. As you get older, and your best working years are behind you, the need to securely and intelligently manage your resources becomes all the more important. By making some simple choices now, your future may be more comfortable and less stressful, allowing you to fulfil your plan of a golden age of retirement. But even those in their sixties, who have already retired, can benefit from some sound advice regarding their finances and general well-being.
As you reach the age of retirement, the need to efficiently deal with life’s obligations becomes more apparent. There are several perennial issues that affect almost every senior-age retiree, many of which can be solved quite easily. Below, we discuss some of the best ways to ensure a comfortable and happy retirement.
Create a Retirement Plan
A certified financial planner can do wonders for your finances, so make sure you take the time to find a trusted planner who can tend to your future. By seeking their advice on delicate financial matters, you can more carefully craft your retirement plan and develop a clear path forward. Options will often include investment funds and the lucrative self managed super fund option.
These days, many retirees and senior aged workers are opting for a self-managed superannuation fund that allows flexibility and greater profitability for the retiree. By accessing the funds in your superannuation account, retirees can opt to invest in the property market and live off the rental money accrued by the property. Other choices might include discretionary trusts (for business owners) or adapting to a pension-based scenario (for certain employees).
Pension or Superannuation?
Carefully consider whether you will be entitled to a state pension. Today, with the superannuation scheme already having been in place for decades, the criteria for a pension is quite strict. If you own a property or have invested in the market, the Government may refuse to give you a pension. But given the widespread use and adoption of the superannuation scheme within Australia, many retirement-aged citizens are well prepared for their golden years.
Superannuation is often an overlooked social necessity, and one that must be carefully managed by the account owner. Retirees are encouraged to research their superannuation options and to search for a fund or provider that is more closely aligned with their particular needs and desires. There is also a lot of federal assistance and oversight of the scheme, so hop online and acquaint yourself with the ATO’s ‘lost super’ finder and other useful information.
Figure out your debt!
It’s easy to become overwhelmed by the piles of credit card bills and mortgage repayment letters. Properly organising your finances can create a more manageable debt repayment scheme. By consolidating your debt, it’s possible to re-finance at a more amenable rate of repayment and interest.
Another idea worth considering is the refinancing and accelerated repayment of your mortgage. As your mortgage lingers on, the amount paid to the bank can be truly staggering. So if you signed up for your mortgage decades ago, maybe it's time to refinance?