Want more confidence about your retirement? Here’s why a financial plan may be the answer.

Published on: July 19th, 2023

Financial services firm Vanguard released their landmark How Australia Retires report recently, exploring Australia’s attitudes to retirement. In the wake of COVID-19, attitudes have shifted in many areas, but finances remain a mainstay concern for Australians across all age groups.

According to the report, 50% of working-age Australians want to retire with a yearly income significantly higher than that currently required by older generations. Our retirement expectations are growing with each generation, so how can we ensure we live the life we want at the end of our careers?

For many of us, it will be the first time we are not working and generating an income in our adult lives. Building future income streams is an important goal during your working life, but many don’t think about it until the pre-retirement phase. (That doesn’t mean it is too late, but as with most financial goals, the earlier you start, the better the outcomes.)

Financial advice is critical to retirement confidence

In fact, the report highlighted the strong link between financial planning and retirement confidence, finding that people with a financial plan are six times more confident about their retirement than those without.

Conversely, those with the lowest confidence were also the least prepared for retirement. Many within this category also reported never having accessed financial advice.

And it makes sense that preparation and financial planning are the keys to success. The right financial plan should act as a roadmap for retirement, factoring in your future income streams, goals and values, and the emotional transition to retirement to ensure you live your best life.

Your financial roadmap

It’s never too early in your career to think about your future. Financial advice gives you a long-term blueprint for success at every age. It’s not all about retirement either – it’s about living for today too.

We say that making financial decisions without a plan is like deciding how you will get somewhere before you know your destination. You might get lucky and choose the right mode of transport. However, you’ll get there in the most efficient way if you have your destination in mind from the outset.

Your financial plan is a roadmap with your starting point, destination and stopping points along the way – whether that’s starting a family, buying property, building a business, living overseas, travelling the world, philanthropy, supporting adult children or all the above.

Whatever life looks like to you, your financial plan can help you make it happen – and it should end with living your dream retirement.

Financial advice isn’t just about more confidence in your retirement, either

Most advised clients experience positive benefits at every life stage, from increased peace of mind to happier relationships.

One study by the Queensland University of Technology (QUT) found that ‘the majority of clients viewed financial advice as making a positive contribution to their financial well-being and a range of psychological well-being factors; with highest agreement for sense of security, financial well-being, sense of control and peace of mind’.

Many other studies support these findings, too. In a similar vein, IOOF’s The True Value of Advice annual study found that people who receive ongoing financial advice:

  • experience greater levels of happiness
  • have increased peace of mind
  • are almost 20% less likely to experience conflict with loved ones.

How to get started with the right advice

So, if you receive the right financial advice, you can rest assured that you are building a roadmap to the best possible future.

If you aren’t sure if your adviser is right for you or you haven’t accessed financial advice before, here’s our guide to what to look for in an adviser. We also invite you to meet the Apt Wealth team here and contact us to book a free financial planning consultation here.

General Advice warning

The information provided in this blog does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. Apt Wealth Partners (AFSL and ACL 436121 ABN 49 159 583 847) and Apt Wealth Home Loans (powered by Smartline ACL 385325) recommends that you obtain professional advice before making any decision in relation to your particular requirements or circumstances.