As record numbers of Australians transition into retirement, considering your retirement lifestyle, the cost of living and your expected annual retirement income, is crucial in your retirement planning.
We hope that we can retire with enough life left in us to enjoy all the things that took a backseat during our working years. We want enough money to be comfortable and safe in the knowledge we won’t run out of money and have to go back to work, unless of course we want to. With all this in mind, you probably want to place a dollar figure on how much you need to save now, to be able to retire comfortably. That number is your individual number as it will be based on your individual circumstances – where and how you want to live, your assets and debts, whether you have dependants or not and the type of lifestyle you live. It will also change based on the type of investments you hold and the returns on your investments
Getting the balance right between a safe spending rate and having enough income to enjoy retirement takes some careful planning. Investing for a reasonable return is one approach to helping your savings go the distance.
There is a temporary reduction in the minimum annual amount that you’re required to withdrawfrom your super income stream. The reduction in the minimum drawdown rates applies for the duration of the 2019/20 financial year and for the 2020/21 financial year. The minimum drawdowns for account based pensions reduces as…
Many of us think of retirement as a given – you work hard for your middle years, and then you get to bow out of the workforce and enjoy a well-deserved rest, take those bucket-list trips and enjoy the best life has to offer. After all, you’ve made your contribution and now you’ve earned the right to kick back.
When you embark on anything new, you are bound to make mistakes. But when those mistakes are in relation to money, they can have big implications. So how do you avoid those rookie mistakes when you start your retirement? The first step is to know the common mistakes others have made so you can learn from and avoid them.
The severe falls in global share markets in late 2018, after almost a decade of strong market returns, led many investors to ask whether it was too risky to stay invested in the share market during their retirement. If they did stay invested, should they move to a strategy with less exposure to higher risk investments, like shares? As it turned out, markets rebounded in January, recovering most of their December losses. It’s normal to feel anxious about your investments when markets are volatile. However, changing your investment strategy in response to market volatility can have serious consequences for your wealth in retirement. We put superannuation – specifically, account based pensions − under the microscope and look at some of the lessons we can learn from the past.
Imagine a baby is born in Europe at the very moment you finish this article. That child can expect to live for two minutes longer than one born as you finish this sentence. Increasing lifespans threaten to topple the current pensions model. But, then again, maybe it’s time for a change.
Money usually comes to mind straight away when we think of retirement. But it takes more than money to have a happy life, no matter what age. And when it comes to finding a good balance in life post-work, there are big differences between men and women.
Supporting your dependants doesn’t have to come at the expense of building your retirement nest egg.
Take control of your retirement Are you affected by the increase in the Age Pension’s qualifying age? Take steps now to avoid getting caught short on retirement income. The minimum age to qualify for the Age Pension has started going up. For those born on or after 1 July 1952,…