What type of retirement suits you best financially?
Not having enough money is one of the biggest concerns Australians have about their retirement.
If you’re feeling worried, one of the best things you can do is to take stock of what you’ve got. Painting a clear picture of your current position and where you want to be is the best way to begin. With enough planning and a bit of expert advice a rewarding retirement can become a reality.
Have you started planning your retirement budget? The Association of Superannuation Funds of Australia (ASFA)’s budget guidelines can be a helpful starting point.
Every quarter, ASFA releases a Retirement Standard. It benchmarks the annual budget needed by Australians to fund either a comfortable or modest standard of living in retirement. Their budgets assume that retirees own their own home outright and are relatively healthy.
According to December 2015 results, a single Australian aged around 65 will need around $23,797 each year to support a modest lifestyle and $43,184 to support a comfortable one.
ASFA’s figures are a helpful guideline but your lifestyle will almost certainly require a unique budget.
More Australians are looking for a flexible transition into retirement
Retirement doesn’t have to be about all or nothing. If you’re not quite ready to retire but you’d like to start cutting back the number of hours you work, a transition to retirement strategy can be a great option to take.
The Australian Government introduced a policy called Transition To Retirement (TTR) in July 2005. It was originally introduced to encourage Australians to gradually reduce their working hours and remain in the workforce, rather than retire fully.
TTR is definitely a policy to consider when you start thinking about retirement.
Two of the biggest benefits TTR can offer you include:
- The ability to supplement your salary and maintain your current lifestyle
- The possibility of saving tax and boosting your super before full retirement
Due to its highly flexible nature, TTR strategy can also be rather confusing to understand. Seeking advice on how this policy could benefit you and your defined benefit super scheme is a good idea.
At StatePlus we understand public sector super schemes. For over 25 years we’ve helped over 60,500 people like you so we know the ins and outs of each scheme. Our aim is to simplify the complexity and give you peace of mind that you’ve taken the steps to prepare for a comfortable retirement.
Your StatePlus planner can help customise your TTR strategy to suit your individual needs and get you the best results. We can advise you on how Australian legislation, superannuation regulations, your assets and the age pension will affect your readiness to retire.