How rich do you really want to be (in retirement)?

Written on the 13 December 2022 by Parkside InvestorPlus

For many retirees, the goal seems to be retiring on an endless supply of money, without having to do anything.

The thought of being an Elon Musk, Jeff Bezos or even Richard Branson conjures up thoughts of a limitless life of fun and adventure without a care in the world.

However, if, for a moment, you had thought about the hardship and struggles these billionaires had to endure to get to where they are today, you may have second thoughts.

For many of us, we want the dream (success), but not the reality (hard work).

And when it comes to retirement, we all don’t necessarily want to have over a billion dollars in our superannuation, however, we do want a level of savings that allows us to live a life of comfort and less stress.

There is a great quote that goes along the lines of;

The goal isn’t more money.  The goal is living life on your own terms.

Planning for a successful retirement, however you define success, takes time, energy, and forward planning.

It’s more than the money

The misnomer that money equates to wealth could not be further from the truth.

Without oversimplifying it, wealth, particularly in retirement, could be defined as;

·       Positive, meaningful, and healthy relationships

·       Getting over the ego – it’s not about how much money you have, rather, the lifestyle

·       Not obsessing about how much money in the tank all the time.

·       Doing things, you want to do rather than having to do

Your Goals in Retirement

Knowing what you want to do in retirement and developing goals and aspirations that matter to you is vitally important.

Imagine going on an overseas holiday and not planning!  You would not.

So, start planning for your retirement.

Here are some steps to think about;

·       Fully understand your finances and financial goals, e.g. will you be mortgage free, how much will you want in yearly income, how much do you intend to leave as inheritance etc.

·       If you’re still working and your super balance is not enough, then you will need to start topping up.

·       At some point you will need additional health care in your retirement – has this been factored in.

It’s hard to cover off on every single event – this is where your financial planner can help prioritise your actions.

If you’re approaching retirement or if you’re already retired, and you’re concerned about maintaining a comfortable standard of living in an environment of rising costs, come and see us at Parkside InvestorPlus for a review of your current situation, (02) 9899 4899.