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AUSTRALIA TALKS ABOUT THEIR WORRIES...
17th October 2019
If you find yourself in the high percentage of Australian’s who are concerned with Financial Pressure and your impending retirement, you are clearly not alone.
However, your cause for concern can easily be avoided by following these three simple steps…
Make the most of your time
We don’t mean time with the family, we mean time invested. Simply, put away what you can when you can.
It’s common to see clients in their mid to late fifties just beginning their retirement planning. It is often the case that they are having to find greater savings than they need to build their retirement nest egg, sometimes at the sacrifice of their lifestyle.
Get into the habit of putting away extra cash every pay and challenge yourself to increase this when your lifestyle changes, i.e. when you get a bonus or a pay rise.
Putting a small amount away over a long term either into your Super, Mortgage or a long-term Investment will help build your asset base faster.
Don’t wait until your mortgage is paid off to start building your wealth
Most lenders set repayments over a twenty or thirty-year term, which means you are unlikely to have your mortgage paid off before your ideal retirement age.
If you have some surplus cash after your repayments each month, look at increasing your repayment amount or start investigating strategies which can assist you in building your wealth – outside your home.
This will ultimately help you pay off your mortgage faster and smarter.
Check in with your super and insurance
Your Superannuation is one of your biggest assets in your path to retirement.
Consolidate your funds (if you have more than one) and make sure you are contributing to your Super. Whilst there is temptation to avoid this if you are self-employed to reap the extra cash in your pocket each week, getting close to retirement with little in your kitty is not ideal.
Aim for the mandated Super Guaranteed Rate, it can take you a long way if invested appropriately.
Ensure that your insurance cover is enough, most funds offer a basic level of default cover which are automatically set according to your age, often at alarmingly low levels – not enough to clear an average mortgage.
If you would like more information on how to implement these tips check out the ASIC’s Money Smart website (https://www.moneysmart.gov.au/) or contact us.
Source: ABC 'Australia Talks', October 2019