A few interesting facts about retirement
Given the financial demands of everyday life, planning your retirement may be a relatively low priority. You may also think that you have plenty of time to plan, but before you put off planning for your retirement any longer, here are some key facts you should consider.
It starts with the basics – setting up a budget, paying down debt and saving – but a family financial plan can also include things like investing for retirement and setting aside money for kids.
Your retirement could last 30 years+
A male currently aged 65 has a future life expectancy of 19 years and for females currently aged 65 it’s 22 years.
But these are just the averages and they are increasing. As these trends continue, your retirement could stretch to 3 decades, or maybe even longer.
You may not be able to rely on the age pension
The full single rate age pension only provides around 25 per cent of average weekly male earnings.
What’s more, qualifying for the age pension may become more difficult in the future, given that Australia has an ageing population.
You shouldn't rely on a possible future inheritance
Your parents or loved ones may end up spending all their savings during their lifetime. They might even need to downsize their home in order to make ends meet.
So, if you’re relying on a potential inheritance to fund your retirement, you could be disappointed.
You might not have enough superannuation
With some of your money going into super through compulsory employer contributions, you’re off to a good start. However, it may become a nasty surprise realising those contributions may not be
Did You Know?
Research conducted by Rice Warner Actuaries revealed that Australia has a shortfall in super of close to $1 trillion, which means many Australians may not have enough super to fund their retirement.
PLANNING YOUR RETIREMENT
Thankfully, with a bit of preparation, it’s possible to plan for a long and comfortable retirement. Strategies like salary sacrificing into super, making lump sum contributions or using a transition to retirement strategy, are all smart strategies to consider to boost your super, and some of them generally have tax benefits too.
It’s also possible to use your super to start a pension that pays you a regular income. Some pensions even guarantee to pay you an income for the rest of your life, negating the risk of outliving your savings.
TALK TO AN EXPERT
The best way to see how your retirement savings are currently tracking, and find out what you could do now to increase your super for retirement, is to speak to a financial adviser.
They can help you set realistic goals and put a plan in place to achieve them.
To find out more, get in touch via the below button or call Partners in Planning on 1300 880 100.
Hear from our Clients
IMPORTANT INFORMATION AND DISCLAIMER
This publication has been prepared by Partners in Planning.
Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Accordingly, reliance should not be placed on the information contained in this document as the basis for making any financial investment, insurance or other decision. Please seek personal advice prior to acting on this information.
Information in this publication is accurate as at the date of writing (2021). In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, the accuracy of that information is not guaranteed in any way.
Opinions constitute our judgement at the time of issue and are subject to change. Neither the Licensee nor any member of the Group, nor their employees or directors give any warranty of accuracy, not accept any responsibility for errors or omissions in this document.
Any general tax information provided in this publication is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.
Australian Bureau of Statistics, November 2013.
Rice Warner Actuaries, ‘Longevity Savings Gap’,Sep 2012.