Financing Your Retirement
Have you thought about your retirement lately? Whether you’ve just secured your first job or have been working for decades, it’s never too early or too late to start planning how you’ll finance the years beyond your working life.
A good place to start when making financial decisions for your retirement is to consider where you might live. Many retirees choose to buy or lease a home or unit in a retirement village, enjoying the social benefits that come from living among other retirees in a community setting. This lifestyle can be very rewarding and suits couples and individuals who are able to live independently. Aged care facilities are available for those who require a greater level of support.
Staying in your own home throughout retirement is a dream for many people—one that’s achievable, even if you face health issues in later life. Caring health and support providers like Ozcare can help you, whether you choose to remain in your own home or decide to move into a facility, and can provide support with meal preparation, transportation, nursing and many other services.
The best part of retirement is having control of all the extra time on your hands. If you plan well financially, you can look forward to a great lifestyle that includes plenty of time for travelling and indulging your hobbies (such as playing golf with friends).
Do your sums
Your first step in planning for your retirement is simply to calculate how much cash you’ll need to live each week. Sit down and work out your expected retirement expenses (and don’t forget to plan for a trip or two or unexpected medical costs). Next check the status of any debts and plan to pay them off over time. Any credit card debt, car loans and mortgage repayments will eat into the money you need to live off each week once you’ve retired.
Give your superannuation a health check
A good super balance is the best way to ensure a great retirement. Check in with your super provider and find out your super balance and how your super is expected to grow at your current contribution rate. You might also like to check in with an independent financial advisor or an online superannuation calculator to estimate the income you’ll receive from differing target amounts of superannuation. This will help you determine the best balance to aim for by your retirement date.
Help your super grow big and strong
Your employer is legally obligated to pay your superannuation, but did you know that you can top up your super too? Voluntary contributions are a great way to grow your retirement nest egg. You can make a voluntary contribution at any time or use ‘salary sacrificing’ by asking your employer to redirect a little of your pay into your super account each week.
Let the government lend a hand
The Australian Government encourages workers to top up their super with a co-contribution of up to $500 each year for people who add extra $$$ to their super. Plus if you reach retirement age and don’t feel you have built up enough super, the ‘Work Bonus’ is a government incentive perfect for you. This bonus is designed to encourage people eligible for the Age Pension to work past their pension age.
To ensure your retirement will be a positive change, you’ll need to make sound financial decisions. Planning early will ensure you’ll have the funds in place to support the rewarding retirement lifestyle you have always dreamed of…one with as much independence and adventure as possible.