Financial advice is crucial for Australians, especially for those who are young. Retirement might seem far away, but there are steps you can take now to reach your retirement goals. As life expectancy increases, retirement could become a significant portion of your life. It’s important to consider the lifestyle you wish to have in retirement and start planning for long-term wealth creation.
Ask Yourself What Age Do You Want to Retire By?
Australia doesn’t have an official retirement age, but several factors influence when you might stop working. This could be when you’re eligible for the Age Pension, reach your Preservation Age, or due to other factors such as health, profession, family circumstances, or personal preference. Consider that early retirement means relying on savings and superannuation for a longer period, requiring more savings to support yourself.
Add Extra Money into Your Super Account Now
Consider boosting your superannuation by setting up a salary sacrifice arrangement with your employer. Superannuation is a long-term commitment, and even small additional contributions can make a significant difference in the long term.
Get Protection for Any Unexpected Events
Ensure your insurance coverage within your super meets your and your family’s needs. Insurance can mitigate the financial impact of unexpected events like death, job redundancy, or serious injury, helping protect your retirement savings.
Review Your Investments Approach
Reviewing your super investment strategy can significantly affect your retirement goals. If you have many years left in the workforce, consider a higher risk, higher return investment approach.
What’s on Your To-Do List in Retirement?
Think about how you want to structure your time in retirement. This includes travel plans, lifestyle changes, hobbies, financial assistance to children, caring for relatives, or part-time work. These factors influence how you fund your retirement and the sustainability of your chosen lifestyle.
Look at Your Debts
Consider if you’ll enter retirement debt-free. Repaying debts before retirement can greatly enhance your lifestyle and available funds. Proactively clear your debt using free cash flow and consider consolidating debts or switching to providers with lower rates and fees.
