Creating Your Retirement Roadmap: A Checklist for Australians

Retirement planning can feel a bit overwhelming sometimes but when you approach it with a structured process, a step-by-step method, then it can feel like something you could easily achieve and was never a daunting process to begin with. A clearly defined retirement roadmap can give you the confidence, clarity and the control over your financial future. Here is a complete checklist of all the things one should consider for an effective retirement planning. 

Goal Driven Investment Plans

It is crucial to visualize an ideal retirement that you want. It can be a retirement filled with travel, new hobbies, supporting your family or even a new business venture. A clear sense of what you want or the lifestyle you desire will set the base for your retirement plan. An estimate of your desired retirement income should be made next. It should also include the age you are looking to retire by. These initial steps will affect all your forthcoming decisions.    

Assess Your Current Financial Position

It feels a lot like preparing for a long journey when you are planning for your retirement. You need to pack not just for the sunny days but also for the unexpected storms that you might counter. The most important part of this preparation for your journey is that you have to protect your journey and as well as manage the risks that might occur and throw you off course. 
The first step is to take inventory of your current situation. Look at everything you have from your Super fund to any other investment that you have made till now, properties that you own or any savings. Now look at what you owe. You will get a complete picture of your net worth now by adding up all that you own and subtracting all you owe from it. This is your starting point   
These check-ins are crucial because these will help you find any weak spots that you might be having in your plan. Identifying these gaps early will then help you to come up with a strategy to fix them sooner. 

Understanding How Much You’ll Need

Consult a financial advisor to get an estimate of how much money you are going to require throughout your retirement. Factor in various factors including rising cost of living, healthcare expense etc. Understanding the gap between your current savings and your target will help you drive your next set of actions.

Maximize Your Superannuation

Superannuation can be considered as backbone of retirement income for most of Australians. Review your fund’s performance, fees and investment options regularly. You can consolidate your multiple super accounts that will help you in saving on fees and to avoid your lost super. Consider making additional contribution to you super if your budget allows. These salary sacrifice and after-tax top-ups will help you accelerate your savings. Make sure to monitor your annual contribution caps as well for concessional and non-concessional limits

Diversify Investments Outside Super

While superannuation provides a strong foundation, it’s smart to build additional wealth through diversified assets such as investment properties, managed funds, shares or term deposits. Diversification can improve long-term returns and add flexibility to your investment options. 

Plan for Government Support

Familiarize yourself with Centrelink’s age pension rules and eligibility. Many Australians receive some level of income support although everyone will not qualify. Factoring possible government benefits into your will roadmap provide you with a more conservative estimate of your total retirement income.

Prioritize Debt Reduction 

Retiring with minimal or no debt will enhance your financial security. Prepare a plan to pay down home loans, credit cards and other liabilities before retirement and make sure to prioritize high interest debts first.

Secure Your Health and Insurance Needs 

Medical cost tends to rise as we age. To make sure that your cover remains appropriate as your financial position changes, you can consider taking up income protection or life insurance in case you have dependents. Make sure to review your private health insurance policies regularly and make any needful changes whenever required.

Create (and Update) Your Estate Plan

A complete Estate plan includes a valid will, powers of attorney and binding beneficiary nominations for your super. This will protect your loved ones and ensure you wishes are carried out.

Regularly Review and Adjust Your Plan 

Retirement planning is not a one off event. Rather, it is a continuous process that includes reviewing your roadmap annually or whenever a major life even happens. You will have to keep adjusting your saving strategies, your investments as well as your retirement targets as you circumstance changes.