The choices you make in the lead-up to retirement will significantly impact your quality of life as you grow older.

With complex rules surrounding superannuation, taxation, and pension eligibility, a relatively small amount spent in obtaining proper advice could pay off many times over.

The first step, of course, is to know who you are dealing with. You can obtain general information from many sources, but if you are paying for professional advice, then you should ensure that the person is suitably qualified.

Under rule changes introduced in 2019, financial advisers in Australia must have an approved Bachelor’s degree or higher, undertake a professional year of supervised experience, and have passed an exam set by the Australian Securities and Investments Commission (ASIC).

During that year of supervised experience, they must demonstrate technical competence, client care and practice, regulatory compliance, consumer protection, professionalism, and ethics.

As of 1 January 2023, anyone who provides tax (financial) advice must be listed on the Financial Adviser Register as a relevant provider and registered with ASIC. More information, including the distinction between registered financial advisers and those who provide only general advice, is available here.

When choosing a person to deal with, you may want to ask whether they obtain commissions or other considerations for recommending certain financial products.

Good reasons for seeking professional advice include:

• Retirement planning involves many complexities, including pension schemes, superannuation, taxation, and investment options. Navigating these intricacies requires a deep understanding of the financial landscape, and a qualified adviser can provide valuable insights to help you make informed decisions.

• Many seniors face the challenge of managing limited financial resources during retirement. A financial adviser can assist in creating a comprehensive budget, optimising income streams, and maximising returns on investments.

• With age, healthcare costs often increase. Proper financial planning should account for potential medical expenses, including health insurance, long-term care, and potential unexpected medical emergencies. Financial advisers can help you anticipate these costs and incorporate them into your retirement plan.

• The economic landscape is dynamic, and inflation can erode the purchasing power of your money over time. Financial advisers can help you develop strategies to mitigate the impact of inflation, ensuring your retirement savings can withstand economic changes.

• Planning for the distribution of your assets after death and creating a legacy is a vital aspect of retirement planning. Financial advisers can help you create an estate plan that reflects your wishes, minimising tax implications, and ensuring a smooth transition of assets to beneficiaries.

• Understanding the tax implications of various financial decisions is critical in retirement planning. With good advice, you can structure your investments and withdrawals in a tax-efficient manner, optimising their income while minimising tax liabilities.

• Investment portfolios are subject to market fluctuations, and the impact of these changes can be significant for retirees. Financial advisers can develop investment strategies that balance risk and reward, ensuring you have a resilient portfolio.

• Retirement often involves adjusting to a new lifestyle, and financial advisors can assist seniors in aligning their financial plans with their evolving needs and aspirations.

Whether it’s downsizing, travel plans, or pursuing hobbies, a financial advisor can help create a roadmap that supports these lifestyle changes.

While the ideal time to consult a professional is a few years before you expect to retire, it’s never too late to seek good advice.

Consulting with a financial expert is an investment in a more secure and fulfilling retirement.

Further reading: ASIC, CPA Australia