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Author: Wendy Ng

Make plans for the retirement you want

The choices we make every day of our working lives affect the life we lead in retirement. Sounds scary when you say it like that, right?

What’s even scarier, is that without the right knowledge and advice, most of us never even know we’re making these choices. When it comes to retirement planning, indecision and inaction is a form of choice, and can seriously limit our options when it comes to retirement lifestyle.

So what should you be doing to give yourself the best chance at the retirement of your dreams?

Take retirement planning seriously, at any age.

You definitely don’t have to have all the answers straight away, but it should at least start entering your mind as soon as you enter the workforce – what am I doing to plan for my retirement.

As your career, age and financial situation progress, seeing a financial planner is a good habit to get into. Checking in with one once a year or so to discuss any changes or ideas will give you peace of mind, and will let you be open to opportunities to improve your financial future.

Prepare to live longer.

Advances in medicine and nutrition mean that we’re all living longer than ever. While we’re happy to be living longer, not everyone will consider the fact that this means we’ll have to support ourselves financially in retirement for a greater length of time than any previous generation.

With this in mind, isn’t it worthwhile exploring all your options both in relation to investments you can make to boost your retirement savings, as well as our Government entitlements to make life in retirement that little bit easier?

What lifestyle will you lead?

Very few of us will be aiming for a modest lifestyle after we finish our working life. We’d prefer to live comfortably after decades of hard work.

It’s important to know then, that the age pension will not be able to support what can be called a comfortable lifestyle in retirement. While you could survive on the age pension, most of us will want to treat ourselves to a few of the luxuries we deserve – a nice car, entertainment, holidays, etc.

Our financial planning Partner, Bridges, estimate that the lump sum amount you’ll need to save by the time you retire to support a comfortable lifestyle is:

Couple* $510,000
Single* $430,000

Depending on your age and financial status right now, these figures may seem a little scary..

The good news? Regardless of your circumstances, you can make the most of some online tools to track your progress towards the lifestyle of your choice in retirement.

If you've found this blog helpful, and would like to be kept up to date with regular financial advice, why not connect with The Greater on Social Media?

* Source: ASFA Retirement Standard – March 2015. All figures in today’s dollars using 3.75% AWE as a deflator and an assumed investment earning rate of 7 per cent. They are based on the current means test in place for the Age Pension as of May 2015.

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