RETIREMENT PLANNING

The average wage earner will not even have half the super they need for a comfortable retirement.

Many retirees think that their superannuation will be enough or that they have enough in savings to live comfortably in retirement, however, this is often not the case. Retirement isn’t short term so why should you invest that way?

• Superannuation
• Financial Planning
• Managed Funds
• Self-Managed Super Funds

What is Retirement Planning?

Retirement Planning is identifying your current projected retirement position, your retirement plans/goals and recognising if you need to put in additional strategies to ensure you have enough money to live the lifestyle you want in retirement.

Considering we are living longer, you could be retired for 20 – 30 years, so why only spend 10 years preparing for it, or even less? It’s a long time to be living poor.

What are the benefits of Retirement Planning?

Planning for your retirement allows you to have the lifestyle that you want in retirement and ensures your needs for regular income are met while taking into consideration inflation and other external factors.

Diversifying your retirement investment strategies also carries a lower risk and can produce multiple income streams and offset the effects of inflation.

How does Retirement Planning work?

You need to take a long-term approach to planning your retirement as it could last over 20 years. A considered approach to your investments should be taken as there are a number of options available to maximise your returns.

Over a 20-year period, retirees can expect living costs to almost double if inflation averages 3% pa. In other words, the value of your capital and the interest income you receive from a fixed rate investment will be worth just over half their current value. The real solution is to consider having part of your investment portfolio in growth assets such as shares and property, to allow your capital to grow over the long term and offset the effect of inflation.