HOW MUCH DO YOU NEED TO RETIRE?
Different people will have different needs depending on the lifestyle they expect in retirement, however, figures released by the Association of Superannuation Funds of Australia (ASFA) can help you to plan.
The latest figures indicate that couples need just under $56,000 per year and singles, just over $42,000 to have a comfortable retirement.
Would this be enough for you? How much money would you like to have coming in and what are your plans? Travel? Study? Hobbies? Going to the ballet? Learning another language? Or a musical instrument? How about hanging out with the grandkids or going on a cruise up the Rhone and seeing the castles while eating great food?
How much do you currently earn? How does it compare with the lifestyle you would like to have after so many years of hard work?
Understanding how much you would like to retire on is one of the cornerstones to developing your wealth creation strategy.
WILL THE AVERAGE AUSTRALIAN BE READY TO RETIRE COMFORTABLY?
The latest figures show that most Australians will finish work with almost all of the amount they need – 98%, however, this includes taking the aged pension allowance. Without the aged pension this figure drops to 60% for a couple and 48% for singles.
Sounding pretty bleak hey? And do you really want to rely on the aged pension? There are no assurances that it will be available when the next generations retire. This is a big part of the reason why investing in property is so favourable from a tax position. Australia is the only country in the world that is so generous through its tax system for property investors.
WHAT CAN YOU DO?
There are some simple superannuation strategies you can employ that can help, such as making sure that all of your super is in the one account. Putting all of your super into the one fund can help avoid wasting money on multiple admin fees. However, this needs to be weighed up against things like, existing insurance cover and exit fees as well as any investment and tax implications.
We’ve found one of the best retirement strategies is to invest in property and begin a property portfolio, diversified across different markets, as soon as possible. By doing so, you can expect an annual return of around $25,000 from each investment property, in retirement. We work with you to accelerate your property acquisition strategy so that you can comfortably retire, debt free. For most of our clients a comfortable retirement means $100,000. Now doesn’t that sound better than $42,861? And a reliance on a system that might not even be available in 20 years time? This means ensuring there are 4 debt free properties to draw from and we can help you get there.
If you would like to find out more about how we can help you to retire securely, call us today on (02) 9016 2852. We would love to help you!