Building your nest egg is integral to ensuring you are well equipped for the transition into retirement. Regardless of whether retirement is at the forefront of your mind or a distance future, it is never too earlier or too late to consider how you can maximize your savings for the later stages of your life.
Below is a helpful guide that provides some insight into what you could be considering when trying to boost your retirement savings.
What stage of life are you at?
At Wealth Depot, we understand that everyone is at a different stage in their life which will impact your goals, ambitions, and priorities. The 3 phases below represent typical circumstances of our clients with some tips to maximise your retirement savings:
During this phase it crucial to implement the right retirement plan so you can begin to maximise your savings as early as possible in an effective manner. This means understanding your financial situation, future objectives and how you plan on spending the later stages in your life. You should review your current superannuation fund to make sure it is the appropriate fund i.e. retail, industry or an SMSF and the opportunity to salary sacrifice. Reviewing your insurance is also imperative during this phase to have peace of mind that you and your family are protected for any unfortunate events. Additionally, Estate Planning is also important to review.
The Pre-retirement phase is the lead up to your eventual retirement. At this point in time you should be considering making contributions into your respective superannuation account whether that be concessional or non-concessional to boost you account holdings. You may also consider the potential of making in-specie contributions to your superannuation account as you are exempt from paying tax during your retirement phase ,Your Estate Planning should also be reviewed during this stage to ensure your Will, EPA’s, BDBN’s etc. are up to date.
Keeping track of your saving during retirement is just as important as in prior phases. You way wish to continue contributing to your superannuation fund once you are in your retirement phase however you will need to satisfy the work test. On the other hand you may be considering utilizing your superannuation as an income stream to generate funds for your day-to-day expenses. A great way to preserve your retirement savings is by creating a budget to keep track of your expenses. Our Wealth Portal website is structured to help simplify the process of monitoring your cash flow. Finally, it is also important that your Estate Planning is still up to date.
As always, the team here at Wealth Depot are happy to help achieve your Financial Dreams!