Retirement planning might seem confusing, but the government offers a lot of information and tools that make the process easier. You want to be sure that you make the right decisions so that you have enough income to live comfortably after you retire. You can never start planning too early.
Retirement planning might seem confusing, but the government offers a lot of information and tools that make the process easier. You want to be sure that you make the right decisions so that you have enough income to live comfortably after you retire. You can never start planning too early.
There are so many things to consider from potential health problems, to taxes and making sure you have enough money saved to get by each month. There is plenty of information and quality advice available. Below are some great tools to check out and get you started.
FaHCSIA
The Australian Department of Families, Housing, Community Service and Indigenous Affairs provides some quality information and advice on creating a variety of income streams for retirement income. Learn invaluable tips when it comes to pensions and annuities. Learn the differences between account and non-account annuities. You want to make sure that every dollar you set aside for retirement is earning its full potential.
The Australian Taxation Office
No one wants to think about taxation associated with retirement, but it’s necessary in order to plan for the amounts you’ll need to pay for your income estimates. The Australian Taxation Office provides the documents and tax calculators you need to not be caught off guard. Know exactly when you’ll have to pay and how much. Know what your options are on paying the taxes and if there are any allowances and exemptions. You don’t want to make a mistake in handling your retirement funds that cost you more in taxes in the long run.
The Australian Department of Health and Aging
The Australian agency offers you a way to calculate the costs for any future aged care needs. There may come a time that you need assistance at home or need more intensive care options and it’s important to know what the costs are of all types of treatment and services. You don’t want to ignore this part of retirement planning. Unexpected medical bills and rehabilitative services can bankrupt your savings and investments quickly.
Australian Securities and Investments Commission
The ASIC offers the most comprehensive guide book on retirement planning when it comes to the types of income streams that will work best for your retirement goals. You need to know the benefits and drawbacks of whether you should withdraw your super as one lump sum, or take equal monthly payments so that you are provided with a continuous income stream. Each situation can be very different, but you’ll get the knowledge needed to make a good decision.
The ASIC created a calculator called the MoneySmart retirement planner. Not only can it calculate what you have earned towards retirement at any point in your working career, but you can calculate what extra contributions you’ll need to make to get to a desired retirement income level. It also offers ideas on becoming money smart and budget conscious. The sooner you can start making solid retirement planning activities part of a regular routine, the better your retirement plan will be.
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