Planning is everything
The importance of planning can’t be emphasized enough. Fortunately, it’s never too early or too late to start. So let’s start now. Ask yourself:
- when do I want to retire?
- what do I want to do when I no longer have to work every day?
- how much money am I going to need?
- how much money am I likely to have?
- how much time do I have to save more?
Now to prepare
Do you know how much income you’ll have in retirement?
A good place to start is preparing a budget and comparing your pre-retirement and post-retirement income and expenses based on your planned lifestyle.
To get hands-on, our Retirement Income Calculator is a great tool to explore the level of income you’re likely to have at retirement and how long it could last. It will show you:
- how much super you’re likely to have, and the sort of income this could provide
- what you can do to increase your savings – from investing in a different investment option, to putting extra money into your super and changing your retirement age.
Do you need to boost your savings?
Everyone wants different things for their life after work. But the one thing we all have in common is that we want to be able to live comfortably.
Unfortunately, the experts pretty much all agree that your employer’s contributions alone are unlikely to give you enough super to live a comfortable lifestyle in retirement. And, that you need to put extra money into your super throughout your working life.
See how you can give your savings a boost
There are a range of different ways you can boost your super before you get to retirement, and putting in just a little bit extra each week can make a big difference:
Salary sacrifice – is where you get your employer to pay extra money into your super from your before tax income. If you’re in your mid to late 50’s you should take a look at the Working Income Support Pension to see how you might be able to use it and salary to give your super savings an extra boost, without reducing your take home pay.
To see just how much you could add to your final balance use our Contributions Calculator.
Is there a better investment option for you?
The other thing that can make a difference is your investment strategy. Make sure that your investment option aligns with your return expectations and financial targets. Different options provide different investment growth and risk levels. You can see the difference investing in a different investment option can make to your final balance by using the Retirement Income Calculator. Remember that, even when you retire, your money will still be invested for maybe 20 years or more.