Superannuation and Retirement Planning
Most of us look forward to retirement. It’s a chance to travel, do all the things we never had time for when we were raising a family or pursuing a career. Or it could be just a time to relax and enjoy life.
Your quality of life in retirement can be a mixture of both, with the right planning.
Super contributions, the age you plan to retire, your life expectancy, your exact asset position, and the cost of living in retirement, will all have a big impact on how much you’ll need in retirement and what decisions you need to make now to reach your retirement goals. Factors like your employment opportunities, your health, and your family, may also impact your decision.
There are many things to consider when planning for retirement. Our team here at ABC Financial are here to help you. Our retirement specialists deal with these common questions every day. Whether you are at retirement age, already retired, or just starting to think about how retirement might look for you and your family, our team can help you.
Planning for retirement
No matter what your plans for retirement, the reality is that most Australians will not have enough money.
Some key sources of retirement income can include:
• Age Pension
• Savings and investments
• Superannuation
• Returns on investments during retirement
Knowing how much income you’re likely to have in retirement, and how much your preferred lifestyle will cost, is a key step in reducing the stress associated with planning for retirement.
A good starting point in retirement planning is determining your financial position. It’s a lot easier than it sounds. You may wish to start thinking about the value of your assets and liabilities.
Not sure if your super will last the distance in retirement?
Longevity risk (outliving your savings) is a real risk for most retirees; however it is a risk that can easily be managed with a little preparation and advice. This is what we specialise in.
Will the Age Pension be enough? Will you be ‘comfortable’ in retirement?
Many Australians aspire to have at least a ‘comfortable’ retirement. But what kind of annual income will you need to enjoy ‘comfortable’ by your standards? And how much does that mean you’ll need at retirement?
According to the ASFA Retirement Standard for the March 2024 quarter published by the Association of Superannuation Funds of Australia (ASFA), to enjoy a comfortable retirement, at age 65 singles at will need an annual income of $51,630. Couples at retirement will need an annual income of $72,663. These figures assume the retiree(s) own their own home and do not pay rent or make mortgage payments.
What does ‘comfortable’ mean for you?
Is it traveling, going out for dinner once a week, is it supporting your grandchildren’s education?
The definition of ‘comfortable ‘is different for every Australian. Here at ABC Financial we help you determine what income you will need in retirement, we analyse where you are financially right now, and what steps you need to take to prepare for retirement. Planning for retirement is one of the ways you can reach your retirement goals.
This makes financial advice a very good investment.
Another key consideration when planning for retirement is estate planning.
Ultimately, estate planning is important to ensure that your beneficiaries are appropriately looked after when you are no longer here. We consider the financial aspects of your estate planning and project manage the entire estate planning process so you can protect your loved ones.
Contact us and speak to one of the team today – they would be delighted to answer any questions you may have.