Retirement is something that, if you don’t plan for it correctly, could lead you to financial instability in the future. Many may advise you to start planning for retirement as early as possible. A financial planner is a professional who can aid you in managing your superannuation and moving around finances to help you save for retirement, but if you’re nowhere near retiring, is it really necessary to hire one?
What does a financial planner do?
Understanding whether you need to hire a financial planner at your current age means you first need to know what it is they do and how they can help you. Financial planners are individuals who are trained to guide and advise clients regarding financial matters, including helping them with:
- Budgeting
- Wealth management
- Superannuation
- Insurance
- Tax planning
- Wealth management
- Retirement planning
What are the key responsibilities of a financial planner?
In order to give you sound advice on your finances and how to reach your goals, financial planners will need to have a good understanding of your current financial situation. Here are some of the key responsibilities of a financial planner that enable them to help you:
- Assess your financial goals and standing
- Develop a personalised financial plan for you according to said goals and financial standing
- Recommend insurance products suitable for your needs and risk tolerance
- Recommend investment products suitable for your needs and risk tolerance
- Monitor your investments and adjust as needed
- Provide you with ongoing guidance and financial education
Should you hire a financial planner if you’re not close to retirement?
When you’re young, retirement can feel like it’s still far away, and there’s no rush to start planning for it yet, so why would you need to hire a financial planner? Well, you don’t have to hire a financial planner to help you with your retirement, but there are a lot of benefits that come with hiring one because they aren’t just there to help with retirement planning. Here are some circumstances where it would be helpful to have a financial planner:
- Getting engaged or married
- Planning for a baby
- Starting your first job
- Switching jobs or careers
- Buying a house
- Losing your job
- Coming into an inheritance
- Investing your money
There are many situations in which help and guidance from a financial advisor can be beneficial. Ultimately, solid financial advice is good for people of all ages and hiring a financial planner should not be reserved for those close to entering into retirement. Learn more: Talk to a financial planner for more information today!
What age should you plan to retire?
Retirement is something that many people look forward to. However, not everyone retires at the same age because it depends heavily on how much you’ve been able to save towards retirement. There is no specific retirement age in Australia and the government actually encourages older people to continue working if they are able to, but to be eligible to receive the Age Pension, individuals need to be at least 67 years old. This means that people generally aim to retire by the age of 67.
What should you consider when planning for retirement?
Working closely with a financial planner when planning for your retirement will give you an in-depth look at what you can retire with. When you are planning for retirement, it’s not enough to decide on a number that sounds like it’s enough because you never know how long you’re going to live and what the economic situation will be like when you retire. You need to be strategic. To help you, here are some things you need to consider when retirement planning:
- You need to know exactly what your superannuation is worth
- You need to know when you can access your superannuation
- You need to know how much money you need to retire comfortably
- You need to know your retirement income options
Final Thoughts
At the end of the day, you are responsible for your financial future. As much as a financial planner can assist you, you do not have to hire one in order to retire comfortably if you are confident in your skills and are responsible with your finances. The younger you start working on a plan to save for retirement, the better, but this depends on your current financial situation. For those who aren’t close to retiring, the decision to hire a financial planner to help you plan for retirement is completely up to you.
