Joe Hockey delivered the “Budget of Pain” on Tuesday night. Or as he put it “It’s time, for all of us, to contribute and build”…
One of his commitments is to extend the retirement age to 70 (for those born in or after 1965)! I don’t’ know about you; but I don’t want to be working until I’m 70; or even later…
We must take control of our own financial future now, not rely on the Government pension and / or superannuation through the traditional guarantee charge (employer contributions).
Pre the budget speech on 13/05/14, the Australia Age Pension (as at September 2013) was:
$21,913 – Single
$33,036 – Couple
Compare that to the December 2013 Association of Superannuation Funds of Australia (ASFA) data that shows:
Retirement Costs to maintain a MODEST (basic) life:
$23,175 – Single
$33,358 – Couple
Retirement Costs to maintain a COMFORTABLE (less basic) life:
$42,158 – Single
$47,665 – Couple
Note that a comfortable life is NOT a luxury life, in-fact the definition by ASFA is:
“An older, healthy retiree to be involved in a broad range of leisure and recreational activities and to have a good standard of living through the purchase of such things as; household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, and domestic and occasionally international holiday travel”
What is your predicted superannuation balance when you retire? Consider we are living longer and many calculators are based on a life span of 87. What if you live longer and / or wish to leave an inheritance for your family?
Industry experts suggest you should aim to retire on an income equal to 75% of your work income. Is your superannuation on track to receive that? Many would say no.
You need to take action if a gap exists between how much you want, and what your super and non-super savings are going to deliver.
Don’t succumb to “Analysis Paralysis” where you are overloaded with various information and opinions and cannot seem to make head nor tail of what strategy you want to follow; resulting in you doing nothing.
If only fairytales were true and “we all live happily ever after”. Alas, happiness in the real world requires often difficult decisions to be made, followed by actions!
How can you get started?
– Like our Facebook page and contact us to find out how REIA can help you
– Talk to family, friends or trusted work colleagues to identify where they get property information
– Speak to your professional team (e.g. accountant, solicitor, bank manager)
– Research real estate blogs (such as this one!)
Don’t delay – get started today to take control and secure your financial freedom in retirement…