Although the projected growth in the pool of superannuation savings is certainly heading in the right direction, the harsh reality facing those not far off retirement is that they will have nowhere near enough to retire on!
Increasing life spans, governments continually changing rules and the fact that superannuation savings are not important to many out there (until they are near “retirement” age) is leaving many short, especially the older workers.
It is simple; most people retiring in the next 20 years will not have the lifestyle in retirement they are seeking, or they certainly deserve!
Two options will arise if they are to afford a comfortable retirement, firstly, they will have to work for longer and secondly, the increased contributions required to fund their super will leave them short of time.
As a result, many will be disappointed with their standard of living in retirement.
What can you do to fix this problem?
1. Start contributing to your superannuation earlier
The earlier in life that you start contributing extra to super the better your retirement will look. There is no time like the present to take control and begin saving, even a little amount will go a long way!
2. Understand how your superannuation is performing.
Review your superannuation, could it perform better in an alternative retail or industry fund, or will utilising the benefits of a Self-Managed Superannuation Fund (SMSF) give you greater results? It is predicted that SMSFs will continue to grow to become the most popular vehicles for retirees by far.
3. Speak to our Financial Planner
By speaking to an expert, they can help put in place those little things to help you, project where you will be based upon your current path or possibly put in place insurance protection for the benefit of your loved ones.
You need to compare and analyse your current financial position, because the smallest of adjustments earlier on in your life can make a massive difference by the time you reach your 60’s when you need your superannuation for retirement.
Although our younger population will do better in the future years, as they will have the benefit of the superannuation guarantee for the whole of their working lives, they will most likely still struggle to afford a comfortable retirement without additional input and strategies.
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