70% of Australians planning to retire in the next decade do not have enough super,
according to a recent study by the Association of Superannuation Funds of Australia.
Preparation for your exit from the workforce might sound like a tomorrow problem, but in reality, the ideal time to start planning for retirement is as soon as possible. Most Australians wait until their 40’s to begin thinking about it, missing out on valuable opportunities to grow their investments and boost their income. Wealth creation strategies thrive on time, so the sooner you start, the greater the potential impact.
Not sure where to start or does this all sounds overwhelming? Speak with our team of property investor specialists in a free discovery session to understand the possibilities for you.
Things to consider when planning for retirement:
- Timing – at what age would you like to leave the workforce? If you invest well, you can bring down your retirement age considerably by building wealth.
- Lifestyle – as mentioned above, paint a mental picture of how you’d like to spend your time. This will help motivate you to work towards financial freedom and maybe even retire early.
- Income and living costs – create a budget to help prioritise your spending and help understand your daily overheads
- Plan for the future – investments in property, stocks, bonds as well as additional super contributions can start to build the foundation of your retirement. Working with a property investment specialist or wealth management company is important here to render the best results
Retirement planning FAQs
How much do you need to retire?
The ASFA states a couple who want to live comfortably versus modestly during retirement need a minimum of just under $700,000.00 in their pension fund,** whilst singles should aim for $595,000.00.
How do I check my superannuation?
As part of your Super fund membership you will be able to log on online and find the contributions which have been made over time throughout your career and what your current balance is. If you need help, you can follow the steps here.
How do I build my superannuation?
You are able to make voluntary contributions pre or post tax. Due to the compounding effect of doing this early in your career (even just a small amount) will have a considerable impact on your super balance when it comes time to retire.
What can I do, knowing my super might not be enough?
Investing in a property portfolio is a secure and viable way to add and build value to your wealth and retirement opportunities. Locale has experienced investment specialists who can make recommendations based on your current financial status and your goals for now and the future.
Fact: Australian women have lower super balances than men across every age bracket.
And, as they approach retirement, their median super balance is about 25 per cent lower than men’s.
With hurdles like maternity/parental leave and the 11.5% pay gap (currently) experienced by women in Australia, it is a much harder task to achieve the right amount of super needed to live out your plans. If you are a mid to high-earning individual, or you have equity in your current home, you might be in the perfect position to start investing in property and establish the foundation for future wealth and build it quickly.
At Locale Wealth, you can speak with women who have been in your position and made moves in the property market to build out their portfolios and set up their future.
Speak to one of them today.
Can I afford to invest in property?
Let’s see how much you can borrow.
Chat with one of our in-house finance experts to find out how much you can borrow and invest.
Information shared here is general in nature and does not take into consideration your individual circumstances and finances. Speaking to a professional to ascertain what you can afford, the tax implications and potential rental income is advised.
** https://moneysmart.gov.au/glossary/asfa-retirement-standard
