A majority of Aussies feel they won’t be able to outlive their retirement fund. This sentiment comes in wake of a lot of flak that the baby Boomer generation and their carefree attitude has faced over the last year or so.
Not many SMSF investors are optimistic about retirement savings
Only about 28% of the 6,350 Australians interviewed (according to a report from the Investment Trends) felt that they would last or outlast their retirement savings. Of those SMSF trustees who are still working, 37% felt that they would go for home downsizing post retirement. 39% felt that they would continue working and another 37% felt that they would bring down their expenses to meet the goals of post retirement living.
How many are banking on age pension?
On an average, 44% Australians are willing to bank on the age pension after retirement whereas only 35% of SMSF trustees are inclined to think this way. All this brings a crux question to the fore. How well are we preparing for our retirement years? And are we committed enough towards it, grasping that however far it may seem, it will finally arrive (given our increasing life expectancy, this fact has become even stronger)?
Saving and managing debt
We are somehow averse to saving and our propensity towards plastic shopping beats us in the long run. I think that electronic deposit facilities can ensure that we don’t get enough time to change our minds when it comes to saving money. At the same time, clubbing debts under one head and endeavouring to pay them over a period of time can help, too.
Diversification of portfolio
A lot of focus is required to create the right kind of investment portfolio. Diversifying it and mixing income-generating assets with the growth assets is a technique held in high esteem. But a good technique alone won’t help unless investors curb their temperamental attitude and are ready to hold or sell according to the trends of the market. Often times we let our whims take hold of us and it is then that even the most diversified portfolios begin to fall in the red.