Planning Retirement

Planning Retirement:

“The question isn’t at what age I want to retire, it’s at what income” George Foreman

It’s never to late or to early to start planning your retirement but obviously the earlier the better.

Before you even start planning your retirement there is a few questions you need to ask yourself.

-How long to I expect to live for? Always over exaggerate to make sure you don’t run out of funds.

-How much do I think I will need?

-What expenses will I have?

-Do I want to travel or have holidays?

-How much do I want to leave behind?

-Have you updated your will?

-Create the life you want to live in retirement, It only takes planning.

“Create the highest, grandest vision possible for your life, because you become what you believe” – Oprah Winfrey

Now you need to asses your financial position, Work out how much you already have saved and how much more you are going to need. You need to track how much money you need to put away each week, month or year until retirement to reach your goals. You need to plan to live for at least another 20 years after retirement.

There are a few ways to increase the amount you will have for retirement:

-Salary sacrifice –Increase the amount you contribute to your super.

-Ramp up your savings

-Invest – visit our investment page and get your money compounding

-Can you rent out a spare room to increase the money you can save?

-Lower your expenses

-Pay off your debts

You also need to calculate for inflation. Remember a million dollars today may only be worth $400 000 in 30 years time.

‘Retirement is like a long vacation in Las Vegas. The goal is to enjoy it to the fullest, but not so fully that you run out of money” – Jonathan Clemets

Here is roughly by age how much you should have already saved for retirement:

Age

Salary

30

1 x annual salary

35

2 x annual salary

40

3 x annual salary

45

4 x annual salary

50

6 x annual salary

55

7 x annual salary

60

8 x annual salary

67

10 x annual salary

 

Here is what putting $100 away a week can do to your super. This includes the money that your employer will put away for you. So you just need to worry about topping it up to $100. This is from starting at age 20. Google Compound interest calculator and find the perfect amount for you. The earlier you start the better.