Getting started with a retirement plan

Successful retirement planning is a key part of being prepared for life after work. 

Haven’t given much thought to your plans for retirement? You’re not alone. The comforting news is, it’s never too late to take action. Of course, the later you start retirement planning in life, the more challenging it is to support the lifestyle that you want.

Here are some simple ways to get started with your retirement and financial planning:

1. Join KiwiSaver – For every dollar you contribute the government will give you 25cents, up to $260.72 per year (this is called a government contribution). It’s free money, so why wouldn’t you? Joining is easy, especially with the help of an Adviser. Cole Murray’s KiwiSaver advice comes at no cost to you (we are paid by the provider) and comes with added benefits like having our adviser help you with the paperwork, get you on the right tax rate, and reviewing your KiwiSaver regularly to make sure it’s all working for you. You won’t get that at the bank!
2. Map out how much you need to retire, and how much you can save for the remainder of your working life. Effectively managing your KiwiSaver is always important, regardless of your age. But depending on your risk appetite, and how close you are to your last day of work, your decisions in terms of risks and returns can vary. If you’ve got decades of your working life left in the tank then you’re in a great position to build the retirement of your dreams. The scenario will be quite different if you have only years rather than decades left until retirement. Bear in mind that the closer you are, the lesser time you have to weather the ups and downs of the market. If you’re set to access your KiwiSaver money within the next 10 years, then lower-risk funds may be your best option – unless you’re willing to take a higher financial risk (and potentially higher losses) in the hope of a bigger return.
3. Getting a retirement plan – Managing your nest egg so that it lasts can be challenging, and definitely takes advanced planning. If securing a regular income works best for you and your long-term needs, keep in mind that KiwiSaver can help you. Although funds can be accessed after the age of 65, there’s no obligation to withdraw all of your savings in one go. You can stay in KiwiSaver for as long as you like, and draw your funds gradually over time.

4. If you’re a business owner – Your business is likely to be one of your biggest assets, and something you’ve worked hard to build. Have you thought about what will happen to it when you retire? Would you close it, sell it or pass it on to your family? Whatever the future you’re envisioning, it may be time to draft a strategic business plan and discuss it with all parties involved. Once again, you might want to retain some ownership and continue to receive part of the earnings, or you may go the way of selling it entirely.

5. Know yourself. Learn what kind of investor you are – what is your appetite for risk? How do you feel about putting your savings on the stock market vs. earning interest in the bank? 

6. Stop procrastinating! Putting your retirement and financial planning in the “too hard” basket can seem the easiest option at the time, but trust us – it’s actually quite easy! And the time to start is NOW.

Get some help from retirement planning experts

Talk to a Cole Murray adviser today about getting started, so that your retirement goals can become a reality! You’ll be amazed how a little bit of clarity and professional advice can make all the difference. You go to the dentist and take your car to the mechanic, so why not use a professional to plan your financial future? 

As KiwiSaver and Retirement Planning experts, we can help you plan for your retirement and work out with you how your savings will fund it. It starts with some key questions our Wealth Advisers will ask you, to find out what’s truly important in your life. Having an expert in your corner can make all the difference, whatever the life stage you’re at. If you (or anyone you know) are keen to make your retirement savings work for your needs, don’t hesitate to contact us.

Please note: This article offers generic advice rather than personalised advice and should not be relied upon as personalised advice. An Adviser Disclosure Statement is available free and upon request.

Photo by Julius Yls on Unsplash