Super system prevalent in Australia does not promise even a decent retirement to all who believe in its competence. This statement, harsh as it may sound, is as close to the truth as it comes. More than half of the pre-retirees will be in excess of $140,000 short at the time of their retirement.
Retirement costs have shot up by 2.7%
This shortage can be crucial, and greater life expectancy only makes the proposition tougher. Already, a year-to-year analysis suggests a 2.7% increase in retirement costs. This hike can be clinical.
Many employees haven’t received Super for quite a long time
The Australian Super system fails to see through the continued well-being of its beneficiaries because many employees have not received benefits for their entire working lives. Retirees get a one-shot amount and are asked to make it last for as long as possible. No points for guessing that it ends one day and in its wake brings along a fair degree of financial uncertainty.
How are you placed at the time of retirement?
It is significant to fund aged care and look towards budgeting for the “last string” of life. You may need an investment mix including, but not limited to, growth assets and income generating assets. Ask yourself imperative questions such as: Am I going to work part-time post retirement? Will my children be living with me longer than expected? How are my investments lined up?
Have you built enough equity? Will you be downsizing? Are you using your reverse mortgage options? Did you use your tax returns effectively to bring down your mortgage liability (a great help during retirement)? These are some more questions you need to resolve, and the way you answer them can become the story of your retired life.
What kind of retirement nest egg have you built for yourself?