4 Reasons Why Retirement Financial Planning Is Critical

You might be retiring from work but you are not yet going to retire from spending. That is why saving and planning for retirement must be given priority while we are still capable of earning, and even after retirement. You should set our retirement goal as to be being free from financial worries and to enjoy your retirement years. However, many Australians are not financially ready when their retirement comes. Here are the 4 reasons why retirement financial planning is absolutely necessary:

1.    You might live longer than you expect

Currently, the retirement age in Australia is 65 years old and based on the study conducted in 2015, the average life expectancy in Australia is 82.45 years. If you are living a healthy lifestyle you are expected to live beyond those years. So what does life expectancy have to do with retirement financial planning? Simple, the longer you live, the more money you will need in order to survive and live comfortable. So, if you will retire at 65, you will need to have enough savings and investment that would last for about 20 years.

2.    Social Security is not enough

The money you will receive from your pension is not enough for your needs. It is a hard, harsh truth. For the vast majority of Australians, money from social security is not enough to live comfortably especially if you have an unfavorable medical condition. Furthermore, if you are born in 1957 and beyond, you cannot begin to receive social security benefits until you are at least 67 years of age. That means if you retire earlier than that, you will have to rely entirely on your own personal savings or 401k. Getting a financial planning Balcatta early on, you can prepare for these instances.

3.    Retirees have higher health care costs

As you grow older your health is declining, along with the decline of your health is the increasing health care costs. You will have regular check-ups, medications, medical procedures among other things. Along with the increasing healthcare cost are your regular expenses such as groceries, utility bills, insurance, mortgage payment and entertainment.

4.    Retirement years should be fun and stress-free

Your retirement year should be the time of your life where should enjoy and reap all your labors. If you have secure plans for your retirement, you will have a lot of time for leisure activities. You travel the world and indulge in the hobbies you love. Make yourself ready for retirement by getting financial planningBalcatta service. Retirement financial planning is crucial for an enjoyable, stress-free and healthy retirement. The more you save earlier, the less worry will be.