We Haven't Been Planning Ahead, But It's Not Too Late!

We talked before about the changing definition of retirement, and it’s exciting to look forward to all of the possibilities for our lives after we don’t have to spend all of our daylight hours at work. But there’s a problem: we’re not planning ahead for what should be our liberated leisure.

Most Australians do not have a specific level they’re saving for, and Australia has a retirement savings gap of $1 trillion. One in five Australian workers expect to continue working into their 70s, according to recent research by Randstad. This is partly due to great news: Aussies are living longer than ever before! Thanks to healthier lifestyles and advancements in medical technology, we’re living longer, more productive lives. But this also means we need to save more.

A collaborative study between researchers at Towers Watson and the University of Melbourne found that only 53% of couples and 22% of single people are on track to reach a comfortable level of income during their retirement years. Despite superannuation reforms dating back over two decades, inadequate retirement savings remains a big problem for a significant number of Australians.

But you don’t have to be among those with a shortfall. With careful planning, you can make sure that you are prepared to enjoy your retirement years to the fullest.

Even if you haven’t been planning ahead up until now, it’s never too late to make changes that will benefit your financial future. You can start today by making the following simple changes:

Salary Sacrifice

Your employer has been contributing part of your salary to your Super, but you can sacrifice more of your salary to give yourself an extra boost. Not only will this help your retirement savings to grow more quickly, you will probably also save money on your taxes.

Reduce Spending

In order to salary sacrifice, you might need to cut back on extra spending. Are there some easy ways to do this? Try eating out less, keeping track of how you spend your money, and buying used household items instead of new. Every little bit helps.

Find Other Sources of Income

Are there other ways to invest your money so you have plenty of income during retirement? Real estate and rental properties can add significantly to your retirement portfolio. Investing in businesses can also be a great way to provide for your future via the dividends they pay.

It’s not too late to start planning ahead. If you’d like help or guidance with your retirement planning, we’re here to answer questions or help you create a plan. 

Turn your retirement dreams into reality. You’ll be glad you did.