You Can Be Young Without Money, But You Can't Be Old Without It
So said Tennessee Williams, the American Playwright in the movie Cat on a Hot tin roof. This quote was made in the 1950’s and its relevance is never truer than now.
The Australian Pension age goes up to 67 by 2023 and is only available for those with under just over $800,000 in assets (in addition to the family home). It’s a catch 22. By then your superannuation and other assets are likely to be valued at more than this, and then if you don’t have assets then the pension payout is not enough to rent and live with any degree of comfort.
How much is enough to retire on?
One way to look at how much you will need is to look at 25 years’ worth of income, and then calculate your living expenses. If you are a couple work out the amount for both of you. If it is $50,000 a year, then you will need $1,250,000 for retirement. Adjust these figures to account for your own lifestyle taking in living costs, hobbies, holidays and medical expenses.
You can achieve your retirement plan savings in a number of ways. The intention to receive salary increases should not form a part of this plan. Why? – it is not something you can bank on. The highest age earning bracket is for individuals aged between your mid-thirties and early fifties. Earning more is not guaranteed and even if you are earning a large salary, you will still need to both save and invest for your future.
If you have not started in your goal towards accumulating income for your retirement, then there is no better time than to start today. Whether you have millions in assets or none, we can help you to tailor a plan towards building a retirement income. While we are young, it is not something we want to think of all the time. Being young and having money to spend is fun, but as the quote says you can’t be old without money.
Want to know more?
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IMPORTANT INFORMATION: This blog has been prepared by Modoras Pty. Ltd. ABN 86 068 034 908 an Australian Financial Services and Credit Licences (Number 233209). The information and opinions contained in this presentation is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals’ personal circumstances have been taken into consideration for the preparation of this material. Any individual making any investment or borrowing decisions should make their own assessment taking into account their own particular circumstances. The information and opinions herein do not constitute any recommendation to borrow funds or purchase, sell or hold any particular investment. Modoras Pty Ltd recommends that no financial product or financial service be acquired or disposed of, credit contract entered into or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog may change without notice. Modoras Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication.