Living a long and happy retirement is something that many people aspire to, but the reality is that this will only be the case if you start retirement planning soon enough.
For many Australians, the thought of finishing work indefinitely feels like such a long way off that they feel it is something they can procrastinate over for a few more years.
However, retirement planning cannot be started soon enough – bear in mind that the earlier you begin to put a strategy together, the quicker you can start setting money aside.
So if you have big aspirations such as travelling the world or picking up a new hobby, don’t delay in putting the cogs in motion to make sure they happen.
Make the most of your income
While you still have money coming in each month, this is the perfect opportunity to start setting some aside for retirement.
Although it can be tempting to live for the moment and make one-off purchases, you will be thankful that you began saving so early.
Regular payments into your superannuation will go a long way to ensuring that you have enough to live off when you finish work – failing to do this could mean you have to delay your retirement.
Some people prefer to diversify their investment portfolio so they have the opportunity to maximise the amount of money they will have in retirement.
If this sounds like something you might be interested in, seek guidance from a financial advisor who will be able to point you in the right direction.
After all, sound financial decision making can create real advantages for your retirement savings and take some of the pressure off when you do eventually finish work.
How much will you need?
The amount you need to live a comfortable retirement will depend on a number of factors, which are best discussed when seeking retirement advice.
Figures from ASFA show that on average, a couple will need $56,339 a year to live a comfortable retirement, or $32,555 for a more modest lifestyle.
For a single person, these statistics change to $41,186 and $22,585, respectively.
Everyone’s situation is different – some retirees might have children who are still financially dependent on them, while others may not have any offspring to worry about at all.
Remember that the cost of living is likely to increase as you approach retirement, so make sure this is factored into your calculations.