5 Things You Can Do to Build Retirement Savings
MLC’s Australia today report highlights almost one-third of Australians are contributing additional funds over and above their employer contributions. This provides positive signs that Australians are thinking ahead and preparing for the retirement lifestyle they want, rather than using the aid of government support or inheritance money. As the average life expectancy is now into our 90s, we must accumulate enough super to last for our longer retirement phase.
With super being more on the minds of Australians, it is important to understand how you are able to utilize it fully to make retirement easier for you. By having a good plan for super, this may enable you to retire early, access more lifestyle choices in retirement, have more control over how much you can spend and provide more enjoyment of life once you finally stop working.
Some helpful tips to assist you in building your retirement funds can be to:
1. Consolidate your super
Taking control of your super enables you to grow your savings faster. Consolidating your super accounts reduces the admin fees, gives you a clearer picture of your retirement savings and thus can ensure you make proactive investment decisions.
2. Make a budget for your retirement
Take a pen and paper and write down how much you spend on groceries, bills, entertainment, exercise, sport and hobbies. Continue to think about expenses that continue during your retirement, such as travel, gifts, phone costs etc.
It is important to remember costs of medicine, doctor appointments, public transport and more are discounted with a Pension Concession Card. This budget will give you an idea of what expenses you really need to cover when you stop working, you may be surprised on how much you will need.
Check out our Wealth Portal to help get you started.
3. Increase your contributions
Taking advantage of the concessional and non-concessional cap will help accumulate your funds in your super.
4. Stay invested
To keep earning income in retirement, many people invest part of their retirement savings for the long-term. This can accumulate to be a considerable part of your retirement income if you avoid the temptation to take lump sum payments from your super
5. Get the right advice
Seeking help from a financial adviser can provide a clear and concise review of your expectations for retirement, which can be utilized into your retirement plan.