7 Dimensions of Retirement Planning
Retirement planning has been traditionally provided in one dimension with a focus on financial matters only. Increases in longevity, and ongoing uncertainties about being able to fund your own retirement, require a new way of planning for retirement. A new multi-dimensional way of planning for retirement is required which not only addresses post retirement risks but also matters of the heart that help you live a happy and purposeful life.
If you have led a busy working life as an employee or as a business owner, making the transition from your work or business can be a daunting prospect. A lack of preparation for the next chapter in your life may result in emotional and relationship difficulties. To avoid these outcomes, planning before you retire or sell your business can not only help your decision making process, but also help you design the next chapter of your life that you can look forward to.
As you approach retirement, the importance of estate planning takes on a higher significance. You will need to consider the possibility of losing the ability to manage your own affairs and think about who you would like to take on this responsibility should this occur.
Consideration needs to be given on how to avoid estate disputes and making sure your estate planning objectives are clearly stated with strategies to achieve them.
Health & Aged Care
An ageing population will place additional requirements on aged care facilities and it is highly likely that you or your partner will require aged care. Early planning is required for aged care so that you can maximise the choices you have and also determine the optimum way to fund your needs. Discussions should be commenced with your own parents about their needs so that all family members are in agreement and that family harmony is maintained.
You need to be comfortable with the retirement planning strategies used and they must be reviewed regularly.
Finance & Tax
If you still are running your own business in retirement, you should review or prepare a succession plan, so that your business can continue on without you, or your equity is able to be released if an unplanned event such death or incapacity occurs.
Consideration of the tax strategies available will also help you maximise your retirement options and convert business assets to retirement assets.
You might also consider starting to budget your lifestyle costs so that you see how much your retirement is going to cost.
Retirement will provide you with the time to consider what legacy you would like to leave. Legacy planning is more than what you leave behind and is more about how you live. Successfully passing your wealth on to the next generation requires consideration of family values and communicating the family story.
Consideration of what really makes you happy and how you can use money to create more happiness in your life is the foundation to start planning for your retirement. It may involve all of the above dimensions of retirement planning and will be different for everyone.
Retirement Planning Process
To provide you with the best outcomes, retirement planning requires collaboration between your trusted advisers including your accountant, estate planning solicitor, health professional, financial planner, aged care consultant and succession planning specialist.
Once of your trusted advisers with an understanding of what is really important to you should take the lead role and coordinate the advice you receive to provide you with the best outcomes.
A new way of planning for retirement requires a regular review of all 7 dimensions and is not a ‘set and forget’ process. Your personal and financial circumstances will change, necessitating an update of the strategies used to achieve your retirement objectives.
Irrespective of your wealth, a new way planning for retirement will assist you being able to live a purposeful and rewarding retirement.
Follow My Footprints – Geoff
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- The “Go Go” Years
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- Estate Planning for Life
- My Why
Disclaimers & Disclosures
Geoff Ivanac is Sub-Authorised Representative No. 000309751 of GPS Wealth Ltd (GPS) ABN 17 005 482 726 Australian Financial Services Licence (No 254 544) and can provide the following services financial planning, risk management, managed investments, superannuation and retirement planning, margin lending and self-managed superannuation funds.
The information provided on this website has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your GPS Wealth Ltd (GPS) Adviser before you make any decision regarding any products mentioned in this communication. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither GPS nor its related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.