Healthcare and emergency facilities have definitely improved over the years, allowing higher life expectancy for individuals. Being able to enjoy the bounties of this planet longer is a nice proposition, but it comes with one special headache — you must have more money in your retirement fund if you wish to negotiate the ‘extra’ years well.
Tag: retirement Planning Archives
An article on the website news.com.au talks about the current Superannuation savings scenario in Australia and why people would do well to review where they are headed. Unless Australians take stock of the scene, they might face a bleak retirement prospect. It is ironical that a nation which can boast of $1.8 trillion in Super cannot take help from this retirement vehicle (read the Sole Purpose test) to aid their post-retirement life.
With all the great (and pleasant) noise being made about Superannuation efforts and their considerable link with post-retirement living, I thought it might help to chart a Super roadmap for people of all ages. I mean, a 30-year old won’t think about his Superannuation fund as a 50-year old or a 70-year old. For the 30-something guy, retirement is a distant possibility not looming anywhere close to the horizon yet. For the 50-something person, on the other hand, it has become part of the to-be-embraced fate and for the 70-something guy, well, he is there and living it.
How much retirement budget is adequate? Are SMSFs pushing themselves in the right direction? In an article for the website SMSF Adviser, Katrina Brown throws light on these pertinent questions. Most of the SMSFs, according to recently analysed data (with a very large sample set) are moving in the right direction and they should have enough in their kitty to enjoy comfortable retirement.
Let me start with a couple of statistics. Somewhere between 12% and 13% of working adults believe they will have to work till eternity. You may presume that this is a little defeatist. The second one may seem marginally better — a majority of us believe we will have to work till 68 years of age to keep ourselves in line with “happy retirement”.
The thought of retirement brings varied emotions. Yes, there is the satisfaction of a life spent with working shoes on and work in itself is a redemption we know. There is also the eager anticipation of days which will be spent doing things we did not find time for earlier. Amidst all these, there is also the thought of the precariousness which lies ahead in terms of finances. Let us face it — we Australian retirees do not have enough in our retirement kitty to think of a decent post-retirement living. So what’s going wrong?