Ten steps to getting Sorted for retirement

Follow these ten steps to get sorted for a more comfortable retirement...

1. Envisage the retirement you want
Think about what kind of lifestyle you want, where you want to be and who you want to be with. Write down the steps needed to get there. The more specific and realistic you are the more likely you are to achieve your goals.

2. Start thinking about retirement early
And not just about finances, but about how you want to spend your time after finishing fulltime work – hobbies, interests, family, and how or if work will fit in.

3. Work out your financial needs
It’s estimated that most people need about 70% of their present salary when they retire and the average lifespan at 65 is currently 81 for men and 84 for women. Work out how much income you’ll need each year, and how much you have to save now to generate that income.

4. Pay off debts
Pay off debt as quickly as you can, even if you just increase the frequency of your repayments.

5. Save
Once debt is paid off, start saving. It’s never too late. Consider a workplace scheme if it’s available or save on your own.

6. Manage your nest egg
You’ve worked to build it, now make it work for you. Whether long or short-term investments, bonds, shares, or property, the general rule is that the more you rely on your nest egg for regular income, the more conservative you should be.

7. To retire or to semi-retire
More and more over-65s are continuing to work part-time. It is good to keep active, and it is good for your pocket, but do not totally bank on being able to support yourself by working into your later years.

8. Where to live
There is a lot of money tied up in your house, so will you stay in the family home, trade down, sell up and rent, move in with family, or buy into a retirement village? All of these have financial implications for how you will live in retirement.

9. Protect your assets
Update or draw up a will, and consider whether putting your house or other assets into a family trust is for you. Think about whether you want to leave an inheritance and if so how much.

10. Talk with your partner
If you are in a partnership, talk about your retirement goals to make sure you are in synch. Women live longer than men and often end up living on their own. Couples need to include this likelihood in their retirement plans.