Retirement planning is the process of determining how much capital you will need at your planned retirement age, in order to provide you with your desired level of income for your lifetime.
The aim of retirement planning is to achieve financial independence, which is obtained when gainful employment can be seen as an option, rather than a necessity.
Comprehensive retirement planning encompasses income tax and capital gains tax minimisation strategies, superannuation and non superannuation accumulation strategies and debt management. These strategies are formulated with a view to maximising your income in retirement by maximising your income producing assets, maximising government support, and reducing tax.
Retirement planning is not just for those in the latter years of their working life. An earlier start to retirement planning will often mean smaller adjustments will need to be made to ensure retirement objectives are met in later years. It can be as simple as understanding the long term impact of additional mortgage repayments, gearing strategies or superannuation contributions.