Jessica Shuwalow, Newcastle Financial Planning
Have you considered how much money you’ll need to fund your retirement?
It’s something a lot of us normally put on the back burner or just assume that compulsory superannuation (super) contributions and government support will take care of. However, with Australia’s aging population, this is not the case for most.
Australians are living longer than ever. The average life expectancy has increased by two and half years in the past decade and the older we get the more our life expectancy increases. A 60 year old baby boomer today, can expect approximately 32 years in retirement.
So how long can you afford to live? If you consider, even just general living expenses such as food, health care, transport and accommodation, you’re looking in the millions of dollars. Food for example: 3 meals a day x 2 retired people x $10 per meal x 365 days a year x 32 years in retirement = $700,800!
Plus, if you are like most hard working Australians you are also going to want to enjoy your retirement, maybe a European holiday, regular golf, a new car or boat, a holiday house…
Tips for increasing your super for retirement: make additional super contributions, review your current super fund, if you have multiple super funds consolidate them and look for any lost super you might have. If all of this seems a bit overwhelming, complex and time consuming then you may need to consider professional financial advice.
Disclaimer: This editorial provides general information only. Before making any financial or investment decisions, we recommend you consult a financial planner to take into account your particularly investment objectives, financial situation and individual needs. Charter Financial Planning and its authorised representatives do not accept any liability for any errors or omissions of information supplied in this editorial. Charter Financial Planning Limited ABN 35 002 976 294 AFSL Licence No. 234665. Principal Address 750 Collins Street GPO Box 2830AA Melbourne VIC 3000.