Your move from working to retirement may be one of the biggest changes in your life. And while that may sound daunting – don’t worry. By setting yourself retirement goals for life after work, you’re setting yourself up for success.
Researchers behind the Monash University Retirement Confidence Index1 found that retirement planning and setting retirement goals helped people feel more confident approaching retirement. This is because planning and goal setting can help you understand what you need to do now to achieve your ideal financial future.
Why set retirement goals?
Setting retirement goals gives you something to aim for – a target to hit – and an incentive to get there. If you don’t have a goal, how can you possibly reach it?
Here’s how you can get started to create and reach your retirement goals.
Make a list of SMART retirement goals
SMART goals refer to:
- Specific
- Measurable
- Attainable
- Realistic
- Time-bound
As an example, if your retirement goal is to caravan around Australia, one of your SMART goals could be:
- Specific: Buy a caravan for retirement – 2 birth, 18-foot, off-road capability.
- Measurable: Save an extra $500 each month.
- Attainable: Yes – attainable to save $500 / month on current working salary.
- Realistic: Yes – it’s realistic. My ultimate dream is a 33-foot luxury motorhome but that’s not realistic. The caravan will give me the same freedom and will work better for my requirements in retirement.
- Time-bound: 10-year plan – that’s $60,000 plus interest to help buy a caravan for retirement.
What SMART goals would you like to aim for? Use this template to record your goals:
Mark your milestones
To maintain your motivation and to make sure you’re on the right path, check in on your progress. If you are saving money into your bank account, that may mean simply checking in on your balance. Or if your goal is to save more into your super account, you can use our Super Projection Calculator to see where you might end up.
Celebrate success
You’re on the path to reaching your retirement goals – now that’s worth celebrating.
Don’t forget to reward yourself for your efforts. To mark a 12-month milestone, you could simply recognise the moment with a toast at dinner – “Here’s to being another year closer to reaching our retirement goal of caravanning around Australia!”
So what are you waiting for? Start planning your retirement goals now.
Disclaimer
1 The 2022 AustralianSuper Monash University Retirement Confidence Index. Based on 8,000 answers from people age 50 years and over since 2017. Retirement scores are compared to the Australian average, estimated from the key socio-demographic variables captured in the study.