As you approach retirement, you may be wondering what the best thing to do with your super is. Well, there are a ton of ways you can use your super, and some are better than others when it comes to supporting your financial needs.
That being said, if you're wondering what you can do to make the most out of your super when you are retired, here are a couple of things you can do:
1. Use It to Supplement Your Income
There are a number of ways you can supplement your income in retirement, one of which is by using your super. You can use your super to make regular withdrawals or to purchase an annuity. Another way to supplement your income is by working part-time or starting a business.
Whatever route you choose, remember to factor in any associated costs so that you don't deplete your savings too quickly.
2. Invest It
If you're comfortable with investing your super, you may want to consider investing it in a number of different assets. This could include shares, property or even managed funds.
Diversifying your investments can help reduce the overall risk of your investment portfolio, as you'll be less reliant on any one particular asset performing well. This diversification can also help smooth out any short-term ups and downs in the value of your investments, providing more stability over the long term.
3. Use It to Pay Off Debt
If you have any outstanding debt, such as a mortgage or credit card debt, you may want to consider using your super to pay it off. It might sound scary at first, but nothing beats being financially free from any debt. Not only do you not have to worry about the debt, but being able to pay it off means that your credit score is kept intact.
In addition to all of that, eliminating debt helps reduce the cost you face overall during your retirement.
4. Save It for a Rainy Day
If you're worried about having enough money to cover unexpected costs in retirement, you may want to consider saving some of your super. This way, you'll have a buffer to cover any unexpected expenses.
Saving some of your super can be a good way to make sure you have enough money to cover unexpected costs in retirement. This way, you'll have a buffer to cover any unexpected expenses that come up.
5. Use It to Enjoy Your Retirement
There are a number of ways that you can enjoy your retirement. One way is to use your super to fund things like travel or hobbies. Alternatively, you could use it to pay for home improvements or to treat yourself to a new car.
Another way to enjoy your retirement is by spending it with family and friends, such as treating them to restaurants or hosting parties. Of course, this means you're spending your super, but if it brings you happiness, that's a great reason! After all, you've saved it up for many years, and you're entitled to it.
Making the most of your retirement is a matter of finding the right balance between enjoying your money and saving it. With proper planning, you can have a wonderful retirement and still be able to leave something behind for your loved ones!
Swell Financial Planning offers financial services to help individuals grow their finances and make the most out of it. If you are looking for superannuation advice in Australia, get in touch with us today!