Making the decision to retire

In 2010, the Australian Securities and Investment Commission (ASIC) conducted research* into why people retire. Perhaps the triggers won't surprise you, but they found the following:

• Unhappy with work
• Can't find a job
• Kids have left home
• Health scare
• Unexpected windfall
• Influence of family and friends
• It's simply the right time

If you're trying to make the decision about whether or not to retire or have already made it, then consider the following:

• Know your true financial position – list your assets and your debts and establish what's left over to invest once you've made any one-off purchases (e.g. caravan, a new car) and are debt free.
• Know what income your lump sum will deliver – remember in some cases, you may also decide to gradually draw down on your lump sum.
• Understand tax and your retirement income – the tax treatment of your retirement income will depend on where it comes from. There are strategies that deliver tax advantages. For example, once you’ve reached retirement age and are drawing down your Super in the form of an income stream, investment earnings from your Super are tax-free.
• Boost your Super – consider making additional contributions to your Super fund, either as a salary sacrifice or after tax. Limits apply.
• Keep working – if you're over 55 you may qualify for the Government's Work Bonus incentive program.
• Give it a try – if you're thinking about retiring and are not sure if it's right for you, then try it on for size. See if you can take a prolonged break (perhaps long-service leave) and get a feel for what it would be like.
• Get professional advice – your options are varied and can be complex. Working with a financial planner can help you understand the strategies available in plain English, and they can work with you to find the right solution for your specific needs.

Retirement is a big decision. Indeed some financial decisions you make now may not be able to be undone. That's why it pays to get the right advice.

An A-Z Review^® with an ANZ Retirement Banking Specialist: ANZ Retirement Banking Specialists can help you review your position. Knowing where you stand may make the decision to retire a little easier. They have extensive knowledge of the options available to you and starting with an A-Z Review^® to explore your needs, they can examine your everyday banking and recommend a solution to support your plans. Request an A-Z Review^®.

An ANZ Financial Planner could help you determine if you want to work a little longer or indeed retire now. They can examine your likely income in retirement and how to maximise it. They can also help you with strategies such as Transition To Retirement, which will allow you to work less or save more for retirement. This may help you trial your retirement or even boost your Super without diminishing your cash in hand. Your first appointment is complimentary and without obligation. Make an appointment with a Financial Planner.