Transitioning into retirement is an exciting adventure and with every adventure there’s a wide range of emotions......retirement is no exception.
On the one side there’s a sense of freedom, joy and excitement. On the other side, there can be anxiousness, nerves and other not-so-great feelings.
This is normal!
In a previous blog, we discussed the importance of retirement goal setting. It’s important to actively map out what you want your days to look like in retirement.
Are you planning on travelling?
That’s great but most likely you won’t be travelling 365 days a year so what do the non-travel days look like?
What will bring you a sense of purpose?
Having these goals are important as they also help you plan against the aspects of retirement that might cause some anxiety as there will always be risks and concerns that will need to be dealt with.
When it comes to retirement income planning, a few of the common risks are Inflation Risk, Longevity Risks and Return Risks.
A common question people ask us is “how long will my money last?”.
No one wants to have more life than income!
Retirement draw down rates, in other words, the amount of money you are taking from your retirement portfolio each year to fund your lifestyle are numbers that should be revisited with a retirement advisor on a regular basis.
One of the biggest risks to retirees is failing to pay attention to the rate of withdrawal from their portfolios.
If the withdrawal rate is too aggressive you could end up having more life than income. This is definitely a risk you want to pay attention to and deal with effectively. It sounds simple enough right?......Not always!
We cover this risk in detail in the video and cover strategies for planning the ideal drawdown rate from your portfolio.
We hope this provides some clarity!
We encourage you to contact us if you'd like to discuss your upcoming retirement planning needs. On this form, you can let us know where you are looking for guidance as you embark on your retirement adventure!