Some tips to kickstart 2025
You should regularly reassess your financial position. Now is a good time to do it.
As we ease into the new year, it’s the perfect time for you to reassess your financial plans and ensure they are on track for a comfortable and secure future.
Here are some key strategies to help you make the most of your finances in 2025.
Start the year by revisiting your budget. Consider your income sources, including pensions, superannuation, or part-time work, and evaluate your regular expenses.
Account for any new costs, such as increased utility bills or healthcare needs, and adjust discretionary spending to maintain a balanced budget.
If you’re still contributing to your superannuation, ensure you’re taking advantage of any applicable tax benefits.
Review your super fund’s performance and consider consolidating accounts if you have multiple funds to reduce fees. For those nearing retirement, explore strategies such as transitioning to a retirement income stream.
You should also take time to understand what government support you may be entitled to, such as the Age Pension or Commonwealth Seniors Health Card.
Changes to eligibility thresholds or benefits occur regularly, so stay informed and apply for any assistance that fits your circumstances.
Healthcare needs often increase with age, making it essential to plan for potential expenses. If you have private health insurance coverage, ensure it aligns with your current needs.
Consider setting aside a portion of your savings for out-of-pocket medical expenses and prescription costs.
Diversifying your investment portfolio can help reduce risk and provide more stable returns. Seek professional financial advice to assess whether your current investment strategy is aligned with your goals and risk tolerance.
For those already retired, ensure your investments generate sufficient income without overexposing you to market volatility.
This is also a good time to ensure your will and power of attorney documents are up-to-date.
Discuss your plans with family members to avoid misunderstandings and ensure your wishes are carried out. You should also review beneficiary nominations on your super and insurance policies.
Finally, stay informed about economic conditions, such as inflation and interest rate changes, which can affect your savings and expenses.
Regularly review your financial plan and seek advice from a trusted, registered financial planner if needed.
By taking these proactive steps and revisiting your financial plan annually, you can navigate future challenges with confidence and peace of mind.
Disclaimer: National Seniors is not a financial advisor. You should consider seeking independent legal, financial, taxation or other advice to check how any information provided relates to your unique circumstances.
