Step 1: Understand your financial situation
If you’re unexpectedly facing early retirement, one of the first steps is to get a clear picture of your finances. That includes assessing your savings, assets, expenses and any debt so you can put together a budget to manage your spending and set yourself up for the future.
Getting your finances in order
;
Put together a budget
Knowing your fixed expenses – like food, regular bills and rent or mortgage payments – will help you budget. That way, you’ll be able to save more for the future and put together a more detailed plan for retirement.
;
Manage your spending
There are simple ways to keep track of where your money goes, including the money manager tool available through the Australian Government’s MoneySmart website.
;
Cut down costs
There are little things you can do to reduce your spending, such as comparing service providers to avoid paying more than you need on bills. But there are big things, too, like choosing to downsize your home.
;
Manage your debt
Relieving financial pressure can help you fund retirement. There are simple, straightforward tips on the MoneySmart website. If you’d like to speak with someone in person, MoneySmart recommends calling the National Debt Helpline on 1800 007 007.
;
Check your insurance cover
If you’ve stopped work due to illness or injury, you may be eligible to claim insurance, if you have it. You could have cover through your super fund or with an external provider.