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5 Signs you're ready to Retire

Retirement  |  8/08/2017  |   5 min read

Some people can't wait to retire. They'll happily count down the months and days until they can finally put their feet up. 

But that's not always the case. After a lifetime of working it can be hard to leave a career, a circle of friends, or the regular income that comes with a 9-5. If you're on the fence about your own retirement these 5 questions can help you make up your mind.

Your super balance contains ample money

How much money you’ll need for retirement is entirely subjective. Most people find their expenses decreases considerably once they retire, and ASFA (Association of Super Funds of Australia) currently recommends $60,000 per couple for a comfortable retirement. The Equip Retirement calculator can help you gauge how long your savings will last, and if it’s still showing a healthy balance well into your 90s that’s a good sign.

You have a financial plan for retirement

Speaking with a financial planner can help you identify your retirement goals and chart a course to get there. It may be closer than you expect. As Anthony Parrott, one of Equip’s financial planners explains, “I met with a client in his late 60s who thought he had another 3-4 years of work ahead of him. We ran the numbers, and realised he could retire right now and enjoy the sort of lifestyle he wanted.”

Your health is starting to suffer

We all lose a little edge as we get older, but if physical ailments are stopping you from doing your job or causing unnecessary pain it’s time to consider slowing down. Pushing your body beyond its limits will catch up with you in later years, and may mean you’re not able to enjoy the sort of retirement you had planned. At the very least you should consider a transition to retirement strategy that can help you maintain your income while cutting back your work hours.

The markets are robust

Once you retire you’ll be relying on your superannuation and additional assets (shares, property, etc.) to provide your income. If the markets are heading south that’s going to impact your returns, and how much money you have available to fund your retirement. Conversely, a bull market will help grow your wealth, dividends, and overall balance. By the time you’re seriously thinking about retirement you should have your assets in safer investment options such as cash and fixed interest, but the overall state of the markets is something to consider before giving up your day job and the associated income.

You’re not enjoying work

If you’re still enjoying the comradery (and wage) that comes with a job that’s great. As long as your health is okay there’s no reason to give it all up just because you’ve reached some arbitrary age. If, on the other hand, you find yourself dreaming of a little extra shut eye, the time to pursue a passion project, or an escape from  the boss it may be time to speak to your financial planner and see if you can afford to retire early.

 

Speak to an Equip financial planner about your retirement goals, and see if you're ready to retire. Book an appointment online or call 1800 065 753.

 

This information is provided for general information only. It does not take into account your personal objectives, financial situation or needs and should therefore not be taken as personal advice. You should consider whether it is appropriate for you before acting on it and, if necessary, you should seek professional financial advice. Before making a decision to invest in the Equipsuper Superannuation Fund, you should read the relevant Equip Product Disclosure Statement (PDS). Past performance is not an indication of future performance. Issued by Equipsuper Pty Ltd ABN 64 006 964 049 AFSL 246383.  MySuper Authorisation Numbers 33813823017672 and 33813823017518  (‘Equip’, ‘the Fund’ and ‘the Equip Rio Tinto Fund’).

Equipsuper Financial Planning Pty Ltd (“EFP”) (ABN 84 124 491 078, AFSL 455010) is licensed to provide financial planning services to retail and wholesale clients. EFP is owned by Equipsuper Financial Holdings Pty Ltd (ABN 11 604 515 791). You can obtain the EFP Financial Services Guide and/or Privacy Statement by contacting our Helpline 1800 682 626.

Check your retirement income with the Equip calculator