A single, professional middle-aged woman, Marie is amazed by the speed at which the days pass and how quickly life can change. One thing she has come to understand is that nothing ever stays the same and you never know what the future will bring.
This is where retirement planning comes in.
If you’re a single woman in your 40’s or 50’s, do you have a retirement goals? Do you know how to achieve them? Does your current income, lifestyle and budget support your future retirement plans?
Here are seven steps to gain control of your financial future and wellbeing as you head into retirement years.
1. Actively manage your financial life: Address the problem areas of your financial life.
o Whether you do this yourself, or with a help of a financial adviser, spend time and energy working out your retirement goals, and putting them into action
o Figure out what you want and how to achieve it
o Don’t complain or put your head in the sand. Search out information, allocate time to understand it, ask questions and make decisions.
o Gaining knowledge of your financial situation and future goals will make you feel stronger, more powerful and in control of your financial future
2. Maintain a positive attitude: Choose to think positively when things go wrong or are out of your control.
o Change your perception. For example, if your superannuation balance is down due to share market volatility, be aware that, while you can’t change share market volatility, you can change your attitude to the problem.
o Be aware of your thinking. Negative, dangerous thoughts such as ‘I am not going to have enough to retire on’, ‘I won’t be able to pay my bills’, ‘I will end up on the streets’, will only escalate your stress levels.
o Change unhelpful thoughts to positive, solution based ones: e.g. ‘I am still quite young and can work for another 5 years to put more money into super’, ‘I will seek financial advice to understand my options’, ‘I will read books on investing to learn more about it’, ‘I will ask for help if I have to’, ‘I can downsize my home, ‘Many people are in a worse situation than me.’
o Acknowledge the worst case scenario. Understanding this lets you see where your actual position lies and determine possible solutions: ‘I see that the worst case scenario is that I will receive the Government pension.’
o Be realistic and flexible about your problems
3. Have fun: Enjoy your life!
o Acknowledge what you have achieved throughout your life
o As you travel your financial path to retirement, reward yourself for achieving your goals along the way
o Take care of yourself. Do small, inexpensive things that make you smile - have a bath, use a nice moisturizer or perfume, go out for a walk, spend time with friends.
o Allow a little treat once in a while - a pair of new shoes, going out to a nice restaurant, a holiday or trip overseas etc.
4. Increase your knowledge: Successful women never stop learning.
o Ask questions and do research to learn about and understand your financial life
o Knowledge is power. It makes you feel in control of your financial life.
o Women become more cynical as we age, which can have a negative impact on your emotional and financial wellbeing
o Successful women ask questions and reflect on events in their lives
5. Take responsibility: Successful women are accountable for their financial position.
o Commit to change your future
o Put in the time, effort and energy required to achieve your goals
o Prepare, plan, execute and review your situation at set times throughout the year. Know where you stand and be aware of the need to make changes to your plan, where necessary, to achieve your retirement goals.
6. Save and Invest: Good cash flow management is a critical indicator of your future wealth.
o Understand that earning money, spending less than you earn and investing the surplus helps you build your wealth
o Live within your means. Work out, and stick to, a budget. Track your spending. Be honest with yourself. Make the most of your earnings and build towards a safe and comfortable retirement.
7. Be persistent: With the right attitude, knowledge and awareness, nothing will stop you from achieving your retirement goals.
As you head towards your retirement years, what are your goals? Think about what success means to you and how you will achieve it. Do your current finances support your plans and dreams? Working through these steps will help you understand your financial position and get you on the right track to create a safe and comfortable situation for your retirement.
If you’d like to discuss your retirement plans and financial preparation, please contact TruWealth on 03 8648 6534 or email contact@truwealthadvice.com.au