After decades of working long hours in the office, there comes a day where every Australian must look towards future horizons. Retirement is one thing that every individual must look forward to because it comes even if one is prepared—being an entirely different chapter in a person’s life, an age of retirement ushers in a period of rest and reflection for every citizen.
Although there’s no definite age for retirement, planning for it is one thing that shouldn’t be overturned. Retirement planning in Melbourne or Sydney based agencies constantly advises senior citizens on how to properly plan for their retirement so that they don’t have to live under a single pension for the rest of their lives. This article sheds light on some of the best reasons why one must financially plan for their retirement at an early age.
Retirement In Australia: Why Should One Plan For It?
Like every milestone in a person’s life growing up, whether it’s marriage, buying a house or moving to a new locality, retirement also involves a lot of careful planning and decision making. Mainly because after retirement, there’s no additional income keeping up the expenses at bay. Proper planning will keep the person financially independent even after retirement and allow them to be better prepared for any pitfalls or shortcomings in future expenditures.
A study conducted in 2019 showed that 3.9 million senior citizens were retired in the country, with the pension being the main source of income for most of them. Retirement planning in Melbourne, Sydney or Victoria based agencies point out some of the reasons why planning the finances is important. Take a look at some of them:
Uncertainties In the Old Age: Life is full of surprises with its ups and downs. When people were younger, they had the energy to handle them and faced them head-on. But that isn’t always the case when one is retired and nearing old age. The only pillar that will stand firm against such uncertainties and shortcomings would be wealth and money. Although financial planning won’t help deal with such uncertainties emotionally, one can always bet that planning the finances will certainly help!
Medical Issues: Progression in age comes with many medical illnesses and health issues that can put a large dent in the wallet. Even insurance won’t guarantee full coverage for many health problems, so having a fully backed financial plan underway would benefit the partner and the family as a whole.
Having A Stable Flow of Income: As mentioned before, retirement removes the only possible income one had when working in a company.
Pensions are good, but they aren’t enough to support every one of the family’s needs. Planning a sizable amount for retirement can help alleviate these financial obstacles as one crosses over to retirement.
Keeping Up With The Bucket List: Everybody has their plans for and after retirement, which includes travelling, visiting, meeting up with old friends and other agendas. And unfortunately, all these hobbies and things require a substantial amount of money to see it through, which only proper retirement planning can provide.
One of the best assets for retirement planning is time, so starting at an early age can be a huge boost by the time the retirement age comes around. The next best thing is planning the amount of money required to live a peaceful life after requirement. Once these two factors are thought through, the rest will be a smooth journey.