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?
Retirement is not all but at least a good deal about how you manage your Superannuation. Even if the accumulation phase of a Super looks tardy, it is well compensated by the pension phase when the fund actually begins to deliver the goods.
Most of us are convinced about the movement of time. However, we fool ourselves into thinking that others will age, while we won’t. How otherwise can lack of retirement planning be explained? We choose not to pay too much emphasis to it till the time age really knocks on us, and perhaps it’s too late by then. What if we could start planning for those ‘beyond-60’ days when we are in our 20’s? Could be nothing but great! Here are ways on how you can make retirement planning at an early age.
If you go through the Canberra Times, you will find an article by Julieanne Strachan that talks about a number of baby boomers returning to full-fledged or part time work because their Superannuation savings does not have enough legs to carry them through their post-retirement life.
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.