Overcoming Retirement Money Fears

Warwick Walker, from FoxPlan, talks to us about cutting through the complexity of financial life to achieve your outcomes.

The prospect of retirement often evokes apprehension, particularly in relation to financial matters. A recurring question I encounter is, “will we have enough to last through retirement?”. The fear of running out of money is by far the most common concern for retirees or those approaching retirement.

My objective, especially as a Financial Adviser, is to equip you with the essential insights required to formulate a retirement plan that ensures both financial security and a gratifying post-work life.

With that said, let’s embark on this journey!

I cannot stress enough to my clients and potential clients, the importance of retirement planning. Retirement planning is a critical aspect of managing your finances, especially if you are already retired or approaching retirement. While it may be tempting to put it off until later, starting this process at the earliest opportunity can lay the groundwork for a robust financial foundation. This foresight can grant you peace of mind, enabling you to rest assured knowing your future is secure.

One of the most common mistakes I see when meeting with clients who do not have a retirement plan, or are starting to plan, is underestimating their expenses, and overestimating their income. It’s essential to account for all your expenses, including unforeseen medical costs and emergencies, when estimating your retirement income needs.

Furthermore, relying solely on your superannuation might fall short of adequately sustaining the lifestyle you envision during retirement. Hence, it is paramount to broaden your perspective and explore alternative income sources and investment avenues. By planning ahead and making smarter financial decisions, you can stretch your retirement income as far as possible and maximize your retirement funds, avoiding common pitfalls that might compromise your future financial stability.

I understand it can be challenging to know how much money you’ll need for retirement and whether you’ll have enough to cover all your expenses.

Fortunately, there are tools available to help you manage and monitor your retirement finances, such as retirement planning calculators and budgeting tools. Use these tools to estimate your retirement expenses and income, so you have a clearer picture of your situation and can plan accordingly. If you have money set aside, but you’re worried about going through it too fast, I recommend giving the retirement planning calculator a try as it might even show you have too much! What a nice problem to have, right?

It is essential to build confidence to overcome your retirement money fears. This can be achieved by setting realistic goals, tracking your progress, and seeking professional advice if needed.

Strategies for Retirement Planning

You’re going to want to decide how you will create the wealth you require. Will it be through investing in shares via one of the many online platforms (such as KiwiSaver) or through a share broker? Might you start your own business that could be sold in the future? Is buying one or more properties to rent out an option for you? Or will you simply use KiwiSaver and managed funds? The options are many and varied, but getting the right one for you means understanding the pros and cons of each. None of these are one-size-fits-all, meaning the type of investment strategies you might use depends on your situation, so it is important to talk to a professional.

If you already have a plan you’d like to review or you’d like some guidance on creating one, consider seeking the advice of a financial professional who can help you tailor your plan to your specific goals and identify your risk tolerance. FoxPlan has over 25 years of experience doing this and much more for our clients. Even if you think you’ve got it all figured out, a second opinion can give you peace of mind that you haven’t forgotten anything. Sometimes all it takes to improve your situation is a second set of eyes.

Remember it’s never too late to start planning for retirement, and seeking professional advice can help ensure your plan is on, or stays on, track.

At FoxPlan we strive to create a safe space to discuss your future and deliver you a personalised Financial Roadmap to help you achieve your goals and desires. We are Financial Planners, and we help our clients make Smarter Financial Decisions, Together.

If you are interested in learning how a Financial Adviser and A Financial Plan can assist you in achieving your goals why not have a 15-minute, no obligation, chat with Warwick or one of our Advisers?