To account for changing circumstances
The plans that they made even a few years ago may no longer reflect what’s best for them and their family. Having kids, finding a partner or purchasing property are all factors that may affect how they wish to plan for their retirement, and as their situation shifts, it’s worth checking in on which, if any, government subsidies they’re entitled to.
A change in circumstances could also trigger the need to update estate plans or the insurances that complement retirement strategies.
To optimise their super
Revisiting retirement plans regularly can help make sure employees are using super in the best way to support their future plans. Whether it’s making greater contributions via salary-sacrifice or adjusting when and how to draw from superannuation, checking that super is as tax efficient as possible will contribute towards a more comfortable retirement.
Employees might also consider accessing some of their super balance early via a transition to retirement (TTR) pension.
To calculate how much super is needed to support retirement, employees can use the government’s MoneySmart tool.
To meet expectations
As people get older and their lifestyle preferences become more ‘comfortable’ (read, expensive) thier expectations of what life will look like post-retirement are likely to change. Employees may need to adjust the amount they’re saving to ensure they are able to afford the level of lifestyle they’re aspiring to and live debt-free into the future.
Restructuring investments now to optimise yield over remaining working years could help to accumulate funds over an individual’s retirement timeframe. Employees might also choose to alter their risk exposure as they draw closer to retirement and mitigate against dramatic movements in the markets that could leave them high and dry.
Gallagher can help your employees with retirement planning.
Any advice included in this post has been prepared without taking into account your objectives, financial situation or needs. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation or needs.