Planning for Retirement
It’s no secret that Australians are living longer than ever before. With our increased longevity, there is also a greater need to have sufficient funds for retirement. It’s never too early to start planning.
When you retire, the need for an income stream is as important to you as when you were working, to help fund your day to day living expenses. It is important to understand that the retirement phase represents 20%-30% of your entire life, which is a very long time to live off your life savings.
In our current global situation, cash investment rates are providing us with very little returns as inflation is steadily increasing, therefore decreasing the value of returns in real terms. The government is also making it more difficult to receive social security benefit payments, and providing meager means of support. These factors indicate the importance to plan ahead, look beyond superannuation, and set up a strong income stream foundation to meet your retirement needs. Individuals today, cannot just ignore these issues now, and wait until retirement age.
How you save is just as important as how much you save. Inflation and the type of investments you have play a very important role in how much you would have saved at retirement. By placing your eggs in different baskets, you are more likely to reduce risk, and improve returns. The mix of these investments will change as you get older as will your goal and financial circumstances.
Investlink Group Pty Ltd can assist clients with allocated pension funds, non-commutable account based pensions (Transition to Retirement), fixed term annuities and allocated pensions.
By establishing the right financial strategies now, we can help you achieve your desired lifestyle and income during retirement. Of course, how much money an individual will require during retirement is purely a personal decision, and one that is dependent upon lifestyle needs.