Q&A: Pre-retirement guidance and advice

Professional guidance can help pre-retirees in all sorts of ways—some of which you might not have imagined.

Our research suggests people are often overwhelmed when planning for retirement and don’t know where to start. It’s human nature to put things off when there’s no obvious starting point, so getting help can set you on the right path.

It can help provide direction on the tricky questions around retirement planning—and help work out the key areas you might need to focus on. These areas are likely to be different for different people.

What does retirement guidance or advice include?

It all depends on how close you are to retirement and other factors, such as your goals. But, generally speaking, it can include guidance on how to invest your super in the lead up to retirement and then during retirement (which, after all, can be as long as 30 years).

It might also include strategies to boost super contributions to bump up your super balance before you leave full time work. There are different ways to do it—but not everyone knows about them all.

Of course, retirement guidance and advice can also focus on how you can actually draw down super when you retire. Strategies like transition to retirement can reduce your working hours or increase your super savings without affecting your day-to-day income. Products like account-based pensions are designed to give you a regular tax-free income from your investment throughout retirement—but, again, many people aren’t aware of them.

What different types of guidance or advice are available to pre-retirees?

There are different kinds of guidance or advice that cater for people with different needs. Each can be a stepping stone to getting comprehensive advice from a financial planner if you choose.

• General information can cover areas such as how different strategies work (e.g., how a transition to retirement strategy works, what are the different ways you can contribute extra to super). It’s all about giving you clarity on the various options on offer. However, you won’t receive any recommendations about what actions you should take or what strategy best works for your personal or financial circumstances.
  
  You can get general information in a number of ways including through our Retire Ready service. In this case, our retirement consultants will meet with you one-one-one and help you understand the broad issues to consider in the lead up to retirement. They can also refer you to other sources of information or to personal advice if appropriate. It’s a good starting point for narrowing down the considerations for an individual.
  
  
• Personal advice refers to advice that is tailored to your own needs and circumstances and includes specific recommendations. It starts with simple phone advice, but also includes our RetireAssist service for older members and comprehensive advice.
  
  RetireAssist is aimed at people within 12 months of retirement, or who may have already retired. It’s delivered over the phone and is a cost-effective alternative to a full financial plan. Importantly, it can take into account your spouse and also include social security and estate planning considerations.
  
  Comprehensive advice is the final option and involves engaging a financial adviser to consider every aspect of your affairs, including investments outside super.

Whichever you choose, the aim is to provide guidance that enables you to make the best possible decisions as you enter retirement.

How soon before retirement should I talk to someone?

Reaching 50 years can be a watershed moment as people begin to think beyond their working years.

Some of our pre-retirement programmes are designed around people from that age, but it’s never too late, or early, to seek help with retirement planning.

Where can people learn more?

Interested in a Retire Ready meeting ? Call us to find out more and to book a meeting.