The good news is that retirement planning is not just about superannuation.
Superannuation is simply one way of planning for your retirement, but never solely the only way.
The bad news is that most Australians are simply not saving enough to give them anywhere near what they need in retirement.
Retirement planning is all about replacing your main source of income once you stop working. If you like, you really will be self-employed as you will be completely reliant on those assets you have accumulated in your lifetime to fund all of your income needs. For some there will be some government assistance, but for the large majority of working Australians it’s all up to you.
The key to accumulating this amount of money is to start early and to seek advice.
Strategies and structures needed for retirement are different for everyone. The one common thing is that relying on your employer’s superannuation contributions will not be enough. In most cases, it will be a combination of strategies which will eventually fund your retirement. Those may include:
- Paying off your residential mortgage and negative gearing from the equity of your home;
- Purchasing an investment property or long-term share portfolio;
- Setting up a self-managed superannuation fund;
- Understanding the value of salary sacrifice and making extra contributions into super;
- Using spouse contributions and government co-contribution strategies.
Whatever strategy you choose, the key is getting sound advice and sticking to a plan. If you are nearing retirement or you are paying into superannuation and not sure if it is taking you in the right direction, then you need to speak with us.