By the time we get to 55 most of us are starting to think about retirement. You've spent years working hard and it's time to think about a bit more free time. Putting your feet up, doing some of that traveling you've always dreamed of. Or taking up those hobbies and simply spending more of your time with your family and less at the workplace. Nobody in their right mind would blame you for thinking of any or all of those. Certainly not the financial experts at Shire Financial Advice. But if you want to be sure that your retirement goes as planned then you'd be wise to talk to us sooner rather than later to find out just what your requirements are likely to be and whether those requirements are going to be met by your current financial planning and pension(s).
Despite what you may have been told there is no one fixed retirement age in Australia. According to the Australian Bureau of Statistics the average retirement age for over 45's is 55.3 years old. That number is going up though as people choose to retire later, and over the last few years that average has gone up to 62 and rising. Quite simply people are living longer but they are also realising that the Age Pension may not be enough to cover the lifestyle they are hoping to lead. The qualifying age for the Age Pension looks set to rise to 67 by July, 2023 so bear that in mind. Shire Financial Advice can also help you calculate whether you qualify for it and whether it will be enough to fund your lifestyle.
Your preservation age is the point at which you can access your super, presuming you've satisfied all the conditions (talk to Shire Financial Advice about that). The minimum preservation age is 55 which is why so many people talk about 55 as the time to start looking at retirement. In reality preservation age depends on what year you were born, for example if you were born after July 1964 then your preservation age is 60.
You're probably looking at a longer retirement than you think, simply because we're all living longer than previous generations. Which is great news, but it does also affect your financial planning. Talk to Shire Financial Advice about how a longer retirement period affects the way you should be investing for your golden years.
Nobody has a crystal ball and we can't really know what the future has in store for us but there are a number of ways we can calculate what your investments will be worth and what your costs are likely to amount to. Talk to Shire Financial Advice today about how to calculate for your retirement needs because while the best time to plant a tree is twenty years ago, the next best time is now. Let's see what we can do to make your golden years the best time of your life.