Advice matters
Ready for retirement? Six signs to watch for

So, the last day of work is fast approaching. It’s an exciting milestone, but it can also be an emotional and challenging time. Are you ready for it? Here are some signs to look for, according to our SHARE advisers.

You feel ready to move on

Ever heard the saying, “Find a job you enjoy doing, and you will never have to work a day in your life”? This may ring true to you. In fact, apart from financial reasons, many Kiwis decide to keep working past retirement age because they enjoy their job and the social aspect of their work life.

But even if you love what you do, the time may have come for you to move on. Maybe, your job is starting to wear on you and you’re ready for the next chapter. Which leads us to the next point…

You’re financially independent

Retirement planning is a journey, and the destination is not retirement per se, but the freedom to choose what you do with your own time. The goal is financial independence. So even if you feel ready, it’s crucial to check in on your savings and ensure that they can support your lifestyle for as long as you need them to.

Ideally, over the course of your work life, you’ve kept track of your savings, so now it’s just a matter of putting the finishing touches on your long-term strategy. Here are some questions to ask yourself, to get started:

  • How much money will you need, on top of NZ Super?
  • Retirement is a long journey, spanning 20, 30 years or more. How may your spending requirements evolve over time?
  • What would be your contingency plan if you had a shortfall?

Remember, it’s never too late to seek expert help. Our SHARE advisers can help you understand where you’re at and find strategies to make your money go the distance.

You’ve reviewed your financial life

Another key step to take before retiring is to give your financial life a once-over – from your insurance through to your debt, investments and Estate Planning. It will help you approach the next stage with confidence and a clean slate.

You can find a handy checklist here, but please don’t hesitate to contact us if you’d like a more detailed assessment: our SHARE advisers will be happy to help.

You’re debt-free

Entering retirement debt-free makes good financial sense. Every dollar counts, and large amounts of debt can put a strain on your savings once you retire, be that personal debt or even a mortgage. Not only would you have to meet regular payments without a work income, but over time interest costs may also take a toll on your long-term finances.

The goal here is to put yourself in the best possible position to face retirement comfortably. If you still have debt hanging around, what can you do to extinguish it once and for all? For example, would working for a few more years be an option for you?

You have something else to do

Retiring is a big lifestyle shift. Without a job to go to everyday, many retirees find they miss the mental engagement and social connections that came with it. A job can become part of your identity, and when you retire, you may feel that you’ve lost your sense of purpose.

Taking care of the emotional side of this transition is almost as important as ensuring that your finances are in order. So, think about how you’d like to spend your days: a new hobby, some adventures and travels, more quiet time with the family?

You have investments in place

After years of investing for retirement, investing during retirement – including KiwiSaver – can be a great way to make your savings last longer.

However, keep in mind that investing to accumulate wealth is different from investing when you’re withdrawing money. Careful consideration must be given to your risk profile, to make sure that the risk-return ratio of your investments is balanced. Your portfolio needs to be protected through diversification, but also continue to generate income over time.  

Once again, we can help you run your numbers and devise a ‘retirement investment strategy’ that’s suitable for your circumstances.

Like to talk?

As always, our SHARE financial advisers are just a phone call away. We can talk through your options in detail – be that new cover, a mortgage, or your investment strategy. Click here to find an adviser near you.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.