Have I Left It Too Late To Retire Comfortably?

Wherever you are on the road to retirement, it’s not too late to start making improvements to your planning and saving.

The earlier you begin planning and saving, the better off you will be at retirement. However, if you have procrastinated and put off saving until you feel it’s too late, take a deep breath and make some changes now. Even last-minute efforts will help you to retire more comfortably.

The following are steps you can take at any point up until you retire to position yourself better for your retirement years:

Salary Sacrifice

Sacrificing additional funds in addition to the amount your employer diverts to your super will help you significantly. Salary sacrificed contributions to your super are taxed at 15%, which is probably lower than your marginal tax rate, so you save on taxes.

Salary sacrifice is also an easy way to contribute to your retirement savings. Aside from setting it up with your employer, there’s virtually no work for you to do. You don’t have to remember to make transfers every month, and you don’t have to think about how much to contribute. You decide once and it’s done! Remember not to exceed the contributions cap.

Meet With an Adviser

If you’re not sure how much you have saved for retirement or how much you’ll need to live comfortably, you’re not alone. Many Australians don’t know how much they’ll need at retirement, and it’s not uncommon to be unaware of how much you have saved so far.

Speaking with a financial adviser about these issues can give you peace of mind. An adviser can help you calculate how much you’ll need to retire comfortably. This amount can vary greatly from person to person, depending on assets, financial obligations, debts, family situation, and cost of living in a given locale.

Make a Plan

In addition to helping you understand where you are now and how much you’ll need at retirement, a financial adviser can help you to create a plan. If you have neglected retirement planning in the past, you can start from where you are.

Your plan may require that you make additional sacrifices or that you contribute to your spouse’s super instead of your own. You may need to pay off certain debts or consider other sources of income to supplement your super.

Cutting back on your expenses now could have a big positive effect on your comfort during retirement. Restrain from impulse purchases, make your own food, use coupons, and always go shopping with a list. These and other money-saving tips can help you to catch up if you have put off your retirement savings for too long.

You can’t change the past, but you can start today to make positive changes that will help you to retire more comfortably. Don’t put it off a minute longer.