Monitor your retirement plan annually

Checked your retirement plan each year?

Just like your health, you should plan to regularly check your retirement plan each year.

Not only do you need to confirm all your valuations (for properties, investments and debt) you also need to ensure you are using the correct benefit rates and tax rates (Government love to change them) are that you are getting all the discounts and services available to you in retirement.  
While the spreadsheet uses the 'historical average annual increases' for things like inflation, '10 year average returns' for investments and 'legislated benefit increases' for NZ Super, past performance is not a guarantee of future performance, and these may differ significantly in any one year.
Investment returns and interest rates change regularly.  You should check at least once a year that your investments are performing at least as expected, and your debt is still on track to be repaid before you retire.  If you have had a good year, consider ‘taking the cream off the top’ and moving some of your money to a lower risk bucket.  If you need to change an investment (as it is not consistently performing as expected!) our free Retirement Planning Guide and other help articles provide further assistance.
Every change of Government and every Budget cycle is an opportunity for the Government to change something (often without telling you in advance).  You should check you are using the latest information, benefit rates, and rules, to know you are planning from a solid foundation of numbers.  Don’t forget to check your rates (Councils love to increase those), insurance costs (these go up as you age), and your other high cost lifestyle expenses (e.g. travel, power, food).
New vendors are continually being added to the Gold Card, local Councils offer rebates and discounts on things like heating and rates, and central Government is continually changing their rules re new benefits, cheaper power, free health checks etc.  Some get added – some get removed.

Make a note in your diary to check all your numbers (balances, interest rates, eligibility, entitlements etc.) at least once a year to ensure you are still on track to receiving everything you are entitled to receive.  January is a great time while sitting on the balcony surfing the internet, sipping a cool glass of wine or beer.
Don’t forget your spreadsheet is also your crystal ball into your financial future.  If you hear of potential changes (e.g. NZ Super eligibility age increasing, new taxes being introduced, new investment opportunities etc.) don’t forget you can easily use the spreadsheet to see the impact proposed changes could make on your retirement and create a ‘Plan B’ should they become law.
And if you do have that health check and need to change your life expectancy (either up or down) don’t forget to update your plan to see the impacts (Will we have enough money if we live longer? Can we retire earlier to spend more time together? Can we preload our costs for the initial phase of retirement?).  It is a lot easier when you have a detailed retirement plan that lets you see into your financial future.
 
Download our free retirement planning spreadsheet and take control of your retirement.

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Checked your retirement plan each year?