Whilst we are always being told about our poor general health and the increasing level of obesity amongst Australians the fact is that we are all living longer.
Most of us look forward to this long retirement; a period in our lives that is finally all about us. Work commitments have finished and children have flown the nest. Things that may have been put off due to a lack of time are now doable – but how can we ensure there is enough money to fund these dreams? The short answer is planning, but to plan successfully some key questions need to be asked:
– At what age do we want to retire?
– What type of lifestyle do we want in retirement?
– Where is the money going to come from (super, investments, or the Age Pension)?
– What major lump sum expenses are we likely to incur (travel, car upgrade, house renovations etc)?
– How much income is needed to do the things we want to do?
– How long do we need the income to last?
Increased life expectancy means that superannuation and investments play a vital role as the ability to rely on the Age Pension to fund the lifestyle that you want is simply not possible.
It is never too soon to start thinking about the important questions. The earlier that you begin to plan the more enjoyable the journey towards retirement can be and the more fulfilling retirement itself will be.
