Are you retirement ready? Here are some tips to help make the transition.

Superannuation has recently been thrust into the spotlight with the government's proposed tax changes.



Any media discussion around superannuation and retirement often leads to thoughts about retirement. Those thoughts are either “will I have enough money to retire?” or “what will I do with myself when I retire?”.

For some, it’s the second question that can sometimes be of more concern than the first, with the concept of not working and no longer having the routine of employment being a scary prospect.

To ease the transition into retirement, we’ve put together a few tips that can help with the transition:

Break the work habit

Breaking the routine of work is one of the biggest challenges for retirees. After all, it’s a routine that has been followed for nearly 40 years. An excellent way to break the habit is to plan a holiday once you finally retire. A long holiday can help break the work habit and be a reward to look forward to when retirement day finally comes.

Transition to part-time work

Going from full-time to no work is often too big a leap for many retirees. An easier transition can be made by reducing your hours to part-time and seeking volunteer work to fill in the other time, which can be very rewarding.

Look for new hobbies or activities

As you ease into retirement, you will have much more time to pursue current interests, or find new ones. We often use work as an excuse for not being able to pursue our interests, whether they be hobbies or activities such as gardening or playing golf. If you are an active person, committing to a round of golf at the same time every week will help you develop a passion and ideally want more time to play golf rather than work. Other options are learning new skills that you’ve never had the time to pursue. It may be skills like cake decorating or woodworking that can become passions later in life.

Plan to do more in your 60s

It’s a harsh reality, but as you get older and into your 70s, it can be more challenging to be active and get the most out of your retirement. If you plan to travel in retirement, plan to do it in your 60s and don’t wait until your 70s. This is particularly important if you plan to visit locations that may require you to be more physically active than others. Don’t miss the opportunity to tick off that bucket list location because of health issues that may arise as you age.

Share your thoughts and concerns with your partner

If you are concerned about retirement, you must share those with your loved ones. Retirement is a journey that should be shared, and it can bring friction to a relationship if you and your partner aren’t aligned on your retirement goals. This can be more of an issue if there is an age gap between a husband and wife which means one will reach retirement age earlier than the other. In some cases, one part of the couple may still be working full-time while the other has a lot more time on their hands. This is where new hobbies and activities become essential to help fill the time, otherwise loneliness and resentment can cause friction and tension.

Set a retirement date

One final piece of advice for retirement is to set a date. Ideally you would select this date well before your actual retirement date so you have time to plan your finances and feel comfortable as the date draws closer. Setting a date will also help if you are sitting down with your financial adviser to put the right strategies in place when you finally retire.

Whilst many people look forward to the day they retire, the transition can be difficult for others. Hopefully our tips will make that process a little easier, and if you want to have a conversation about retirement and your plans to fund it, reach out to me or one of our wealth management specialists today.

Author: Angus Dockrill

Angus is a Director and Wealth Specialist at IMFG. Angus helps people to improve their quality of life and peace of mind by making smarter financial decisions. See his profile here

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