While most of us don’t start thinking about retirement until we’ve been in the workforce for 30 years or so, the earlier you start planning for your retirement, the easier it is to meet your goals.
Consider the below examples. The change in each case is a personal contribution of $1,000/year or $20/week.
A 50 year old earning $60,000 per year with $100,000 in super. Super balance by age 65 – Approx $232,800.
With additional $1,000/year contribution. Approximate super balance by age 65, $292793.
A 40 year old earning $50,000 per year with$65,000 in super. Super balance by age 65 – Approx $270,000.
With additional $1,000/year contribution. Approximate super balance by age 65 $391,000.
A 30 year old earning $40,000 per year with $35,000 in super. Super balance by age 65 – Approximately $274,743.
With additional $1,000/year contribution. Approximate super balance by age 65, $463,000.
As you can see, the younger you start planning for your retirement, the better.
Australians are living longer than ever and the ‘retirement’ phase of your life could last for 30 to 40 years. The kind of life you lead in retirement and the options available to you, will be determined in large part by your level of superannuation savings.
I meet too many people in their 40’s or older who say, “I’m too young to think about retirement.” Unfortunately, it may soo be TOO LATE to start thinking about it.
Some of the questions to ask yourself as you look towards retirement include:
- Where do I want to live?
- What will it cost me to live?
- How do I want to spend my time?
- Do I plan to work part-time?
- What activities do I plan to undertake?
- Do I want to travel?
- What is my health like?
- How healthy is my partner?
- Will I live in my current home or move to a retirement village?
- Will I be eligible for an Age Pension or part pension?
- Do I want to manage my own savings or get a professional adviser to do it?
- What is the best way to provide for my partner?
- Do I want to leave my children an inheritance.
