Whether you are in your 30’s, 40’s or 50’s now is the time to prepare for a comfortable retirement. Unfortunately we meet with a lot of people where time gets away from them and they leave the planning too late.
Did you know?
1. That a male retiring at age 65 – will spend 23 years in retirement
2. That a female retiring at age 65 – will spend 26 in retirement
3. The maximum age pension is only $31,000 per annum for a couple
4. That an average couple living in a suburban area will need in the vicinity of $45,000 to $55,000 per year just to meet their day to day living cost. This excludes mortgage, rent and children costs such as clothing and education.
What does it all mean?
We see a lot of people in their 50’s and 60’s planning for retirement and it is clear that they have left their planning too late. Also, many people rely heavily on the 9.25% compulsory super and the age pension. Furthermore, because pre retirees have not accumulated enough retirement assets they invest the majority of their money in cash which is earning very low interest rates at present.
What to do
- At least 10 years away from your planned retirement, review your investment strategy.
- Determine what your need to live on in retirement, will you be down sizing?
- Do you own appreciating assets excluding your home? Will your home be paid off prior to your planned retirement? Will you be engaging in part-time work? Will your dependants have left home?
When planning for retirement, most clients need a combination of growth assets, such as shares and property, income generating assets such as shares that pay regular dividends and rent from property, and security such as bank accounts and bonds. The mix of these assets will depend on your personal circumstances.
Here at The Quinn Group our experienced team of Financial Planners and Accountants can provide you with advice and assistance to help you start planning for your retirement now. It’s important not to leave it too late. For more advice please contact Peter Quinn by submitting an online enquiry or calling us on +61 2 9580 9166 to book an obligation free appointment.
The information in this document does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.