Plan now for the retirement you want

Despite the Government recently passing legislation to gradually increase the financial retirement superannuation guarantee to 12%, many Australians are still likely to have inadequate savings when they reach retirement.

While the increase in the superannuation guarantee will certainly help address the issue of superannuation adequacy, it will be of most benefit to those people who are just starting out in the workforce and who will receive the increased contributions for a significant portion of their working life. However, for those people who are close to retirement, or a significant way through their working life, the increase will have much less impact.

No matter what stage you are in your working life, now is a great time to think about getting your financial affairs in order. A key part of that is ensuring that you have strategies in place to give you the lifestyle you want in retirement. The earlier you start planning for retirement, the more likely you are to enjoy the lifestyle you want.

Australians are living longer than ever before, so the importance of having adequate financial superannuation to ensure you won’t outlive your retirement savings is critical. With an ageing population and the average life expectancy of Australians continuing to increase, the extent to which people can rely on the Government pension as their source of retirement funding is under pressure. In any case, it is important to consider whether the pension would provide you with the retirement you want.

One of the key trends we are seeing emerge is a ‘new breed’ of retirees. Rather than slowing down, baby boomers want to maintain their lifestyle and ‘live it up’ in their retirement. Many Australians will be lucky enough to spend more than 20 years of their life in retirement, but to afford your desired lifestyle it is important to start planning now.