Proactive Approach to Your Superannuation
If you're not nearing retirement, chances are your superannuation is most likely furthest from your mind. Though with Australia's aging population, superannuation really should be up there with your other financial plans and goals.
Many of us save thousands to purchase a house; it is generally the biggest financial investment. However superannuation is the second biggest investment you will make in your life, so why should superannuation be just an afterthought? Shouldn't you put as much planning and saving into your superannuation as you would for a house?
With the first wave of Australia's estimated 4 million baby boomers starting to retire, the traditional retirement landscape has changed dramatically. Of the retiring baby boomers 50% will spend at least 25 years in retirement (1).
Why be proactive about your superannuation?
The change in attitude, coupled with superannuation legislation transformation, makes it more important than ever to be proactive to ensure your income needs in retirement are addressed.
People are now retiring younger, living longer and want more options. Modern retirement is now about enjoying a long, healthy and active period of time. With boomers living longer, some opting to retire early and others remaining employed beyond age 65, many of the traditional financial assumptions regarding retirement need to be re-examined. And with more than half of today’s 65 year olds living beyond 85 (2), incorporating longevity into a retirement strategy is vital.
Factoring future costs of living into superannuation
While you need to plan for the 20 plus years of your retirement that you'll be active and healthy, you also need to prepare to be financially secure for the later years in retirement. Despite some people's thoughts that later retirement means less money, almost the opposite is true. Hip replacements, quality aged care and a decent hearing aid all cost money.
And because the superannuation industry has been going through one of its biggest reforms ever, Australians have the opportunity to optimise their retirement savings.
Top superannuation tips
Australians should seek superannuation advice to:
a) ensure they have plans in place to boost their superannuation balance well before retirement, and
b) regularly review their superannuation funds before reaching retirement age to ensure they will have enough income.
A superannuation financial plan put in place now, is a great way to ensure a financially independent retirement, which can be up to 30 or 40 years in many cases.
Get superannuation comparisons & advice today
xLife is committed to raising awareness of different types of tax-effective strategies for Australian's to boost their superannuation.
Superannuation can be structured in ways that will maximise retirement income using a combination of strategies, some of which can even positively impact access to social security benefits.
The value of seeking superannuation advice now can not only increase and extend to your retirement income, but it can also assist you with your all-important retirement planning.
References:
1. ASFA Clare, A less than super future 2005.
2. Australian Life Tables 2003-2005, Australian Bureau of Statistics
Source: Asteron 2010
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Talk to a Specialist Superannuation Adviser on 1300 135 205 about growing your superannuation today!
December 2010
