Retirement Planning, what are your retirement assets?

For most of the population, when you retire, the only way you can generate an income is via a pension from superannuation, the age pension or a combination of both.

Do you know your retirement investment options and assets?  Are you putting all of your eggs in the one superannuation basket?

Current Statistics

According to the 2016-2017 Retirement and Retirement Intention report from the ABS, of the 3.9 million people in the labour force:

  • 20% intended to retire 70 years and older;
  • 50% intended to retire between 65 and 69 years;
  • 23% intended to retire between 60 and 64 years; and just
  • 7% intended to retire between 45 and 59 years.

When asked what their main expected source of income at retirement would be, just over half (54%), reported their main expected source of personal income at retirement as ‘superannuation/annuity/allocated pension’. Whilst approximately 94% of persons intending to retire indicated that they had contributed to a superannuation scheme at some time.

Another commonly reported main expected source of personal income was a ‘government pension/allowance’ (25%).

What if I have left it too late?

No, as it’s never too late to start. We have clients in their 50s looking to do more with their savings for retirement. Even with $80,000 in the bank at retirement, you could supplement your aged pension by more than 10% a year with the right investment. Obviously, the earlier you start the easier it will be to make it part of your budget and overall financial habit.

What can I do?

Having an expert take the time to map out a plan in advance could see you after your years of hard work retire comfortably. It is possible that you could retire with not just your super but:

  1. Cash on hand, and monies separated for day to day living, big bills and holidays
  2. Your superannuation lump sum
  3. A Blue chip share portfolio accumulated over many years
  4. At least one retirement investment property, debt free, and
  5. The opportunity to downsize the family home, and make a large one-off contribution to superannuation to maximise earning ability.

Of course, working into your late 60’s may be appealing to some, perhaps you want to be a 100% self-funded retiree, or draw down some of the aged pension as part of your income strategy for retirement. Whichever way you decide, it would be wise to start early so that you can get ahead when you are ready to finally put your feet up.

Contact the team at Evalesco to talk about what stage you are at and how we can best map out your retirement income and asset strategy.

It’s my job to work as my client’s financial ‘lifesaver’ to ensure that they swim between the flags and that they don’t get in over their heads.