Superannuation Advice: Do you need a financial advisor? January 26th, 2023
Superannuation is an important aspect of financial planning for many Australians. Deciding whether or not to seek the advice of a financial advisor can be a difficult decision, but it ultimately depends on your individual circumstances and goals.
Additionally, it’s easy to think that planning for retirement is all about utilising and investing your superannuation effectively, but in reality this is only one component to preparing for retirement.
These are a few examples, beyond superannuation, that should be considered in retirement planning:
- Receiving a pension or part-pension is on the cards for a lot of Australians, particularly as they reach the later years of their life.
- Minimising taxes and fees will allow you to reduce risk in your golden-years.
- Estate planning, what will you leave behind and how will you do it?
Here are some elements you should consider when deciding whether you need superannuation advice:
Your own financial abilities
A key factor to consider is your comfort level with finance and the Australian benefits and tax systems. If you are comfortable researching and understanding investment options, creating a budget, managing your superannuation, completing your own tax returns and researching potential Centrelink benefits, you may not need the assistance of a financial advisor. However, if you are unsure about any of these areas, a financial advisor can provide valuable guidance and help you make informed decisions about your superannuation and your retirement.
At Netplan we offer an alternative option to a financial advisor which helps you understand all of the elements above and guides you through the retirement planning process. We also take subscriber questions and respond to them in our Q&A webinars, giving people access to a qualified independent financial advisor without needing to engage one privately.
Your risk tolerance
Another important factor to consider is your financial goals and risk tolerance. A financial advisor can help you create a personalised plan that takes into account your current financial situation, future goals, and risk tolerance. They can also help you navigate the complex regulations and rules surrounding superannuation and help you to optimise your contributions and investment options.
Do you really need to take on that risk?
We're strong believers that as you approach retirement, your goals from an investment perspective might need to change. Rather than trying to maximise returns, you should try to maximise lifestyle and ensure that your financial situation gives you the retirement you want. A financial advisor can help guide you through that risk decision.
Any big purchases or plans to work
It is also worth noting that if you are going to continue to work, or make significant purchases like downsizing your home, it can have a real impact on your retirement and superannuation.
A good financial advisor will identify how to do these things in a way that maximises your pension in retirement.
In summary, whether or not you need a financial advisor for your superannuation depends on your level of expertise, financial goals and risk tolerance. It is also important to consider any significant life changes that may impact your financial planning. Ultimately, seeking the advice of a financial advisor can provide valuable guidance and help you to make informed decisions about your superannuation, but it is not essential for everyone.
We believe most people can prepare for retirement themselves if they have the right resources by their side.