It’s never too early in life to start thinking about retirement. While contemplating something so far in the future could seem off-putting, it pays to be preparing for the future as early as possible.
What does a good retirement actually look like?
According to The Association of Superannuation Funds of Australia (ASFA), it would cost a couple $64,771 per year or $45,962 for a single person to live a ‘comfortable’ retirement.
This would cover the costs of basic daily essentials like groceries and transport, the occasional restaurant meal, one annual domestic trip, and an overseas trip every seven years.
For example, to fund a $60,000 annual lifestyle in retirement (and to never worry about running out of money), a working-age couple with a $400,000 home loan and a combined $150,000 already in their super would need to have $1.45 million in income-producing assets.
But, research suggests there is a gap between how much people need, and what everyday Australians actually have at the time of retirement.
ASFA suggests that the average person has a little over $300,000 in their super at retirement age. That’s a shortfall of $1,150,000.
While that figure sounds alarming, there is no need to panic. Yet.
How can I save more?
It is possible to build wealth outside of your super in income-producing assets like property and shares.
This will help bridge the gap between an average super balance and a comfortable retirement lifestyle. That means preparing for the future as early as possible.
Property remains a firm favourite long term investment strategy for most Australians. It offers a regular income through rental returns, as well as capital growth, and potential tax benefits along the way too.
If you dream of one day enjoying time with your family, traveling the world, or taking up an exciting new hobby, securing your financial future is essential.
Find out how to get started right away by chatting with one of our trusted property advisors here.
*Please note that past performance is not an indicator of future performance. AssetBase operates as a Real Estate agent licensed to source & sell property nationwide. This email does not constitute financial advice, credit advice, legal advice or tax advice. Financial advice should be sought from a qualified financial adviser, credit advice from a qualified mortgage broker, legal advice from a solicitor & tax advice from a qualified accountant.