THERE is currently no compulsory retirement age, but some of the things to think about before retirement include work, expectations, lifestyle, money and estate planning.
To help prepare for the retirement lifestyle it is important to make a checklist.
The check list can start 15-20 years before retirement.
At this point those considering retirement should start to think about what to expect from retirement, where they want to live when they retire, and any new skills that may be useful in retirement.
It is important to develop financial plans (speak to a financial adviser if needed) based on personal and financial goals.
Other things to look at doing include volunteering and other interesting activities, preparing or revising a will or organisng an enduring power of attorney and an advance health directive.
Five to 10 years before retirement it is import to revise financial plans, keeping in mind how much money is needed for retirement.
Other factors to consider are how to reduce any gap between how much money is needed to live on and how much will be available for retirement.
Also under consideration at this point are things such as a possible retirement age, retirement investment options, superannuation plans, tax issues and what government assistance is available.
At this time potential retirees could try a few new activities before retirement and make new friends and contacts.
It is also a time to think about what skills can be used to earn extra income during retirement – and if these skills need to be updated.
About a year or two before retirement is the time to review financial plans and budgets with a firmer idea of retirement plans.
At this time intending retirees can also try a few new activities like volunteering to help make new friends and contacts.
With a year to go retirees are also encouraged to talk about their retirement plans with their employer and think about working part-time during the last few years of their working life.
A superannuation fund can advise if there are any repercussions.
At this point retirees should also be considering the timing of their retirement – can they afford to retire when they planned or do they need to stay working for longer?
Other things to consider at this time include whether the family home needs any major repairs or maintenance to meet needs in retirement, does a workshop or shed need to be built for planned retirement activities, does the car need replacing.
If travel is planned now is the time to start collecting brochures and look for less expensive times to travel.
At the six month point before retirement retirees should look to review their financial plan again and budget to make changes.
At this point they can get their superannuation fund statements and review any life insurance schemes.
Once again it is important at this time to review the planned retirement date to check that it is still suitable.
Talk with to family, have a thorough health check and review health insurance.
Three months before retirement check eligibility for the age pension.
Intending retirees can apply three months in advance.
