Planning for retirement early can put you in a better financial position for the future. It is important to understand your current spending habits and the lifestyle you want in retirement in order to accurately plan for it. Most people need about 70% of their current take-home pay to maintain their lifestyle in retirement, but this amount can vary based on factors such as mortgage status, eligibility for the age pension, and life expectancy. Utilizing online advice tools and resources can help paint a clearer picture for retirement planning, allowing individuals to make smart choices such as adjusting investment profiles or making voluntary super contributions.
Checking on your superannuation regularly is important, but it may not need to be done as frequently as some people think. When you’re younger and have chosen a fund with good long-term returns and low fees, major life events like having children or receiving a pay rise may be the times to adjust your contributions or insurance. Retirement is a significant life transition, so thinking about it early and seeking expert advice on making good choices can be crucial. Small steps taken now can have a big impact on your financial future in the long run.
Boosting your super through voluntary contributions is a great way to increase your retirement savings. Compound interest can greatly magnify the impact of small contributions made early on. Contributing $10 a week at a young age can yield better results than having to contribute $150 a week starting at age 45. Voluntary contributions are flexible and can be adjusted or halted at any time, with most funds offering convenient online platforms for managing contributions. Seeking advice and taking action to educate yourself about superannuation can greatly enhance your retirement success, with experts helping to maximize retirement income through government incentives and support like the age pension.
When it comes to taking small steps now to improve your retirement prospects, seeking advice is key. Members who educate themselves about their super are more likely to take action and boost their retirement success. Tools like Aware Super’s My Retirement Planner can help individuals determine the ideal retirement date and amount needed for a comfortable retirement. It is important to chat with experts and ensure you are on track to meet your retirement goals, as small adjustments now can make a significant difference in the future. Advice given in this article is general in nature and readers should seek professional advice tailored to their personal circumstances before making any financial decisions.
