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Australians are Prepared for Retirement
Are you ready for retirement? Do you have all your ducks in a row? According to a survey by the Aegon Retirement Readiness Index, Australians ranks seventh in the world. The survey also found that consistent saving is the key to an effective long-term strategy and healthy retirement fund.
The report highlights that there also needs to be more assistance from governments and employers to ensure retirement plans are in place and are sufficient. If people started saving at an earlier age, they could increase their annual retirement income by an average of $100,000.
The profile of the successful habitual saving group is not ultra-wealthy as you may think. They earn on average around $53,000 AUD annually. When you make this a habit, putting away a few extra dollars each week or month can really add up to a nice savings. Having this money work for you is also important in building your retirement fund.
The government also plays a vital role with providing retirement benefits, tax breaks and encouraging people to take control of their retirement plans and security. One-Third of the survey respondents indicated that they would save more if there were additional tax breaks on long-term savings accounts or retirement products.
The report indicates that younger people still struggle to save for retirement. They are also faced with other financial obligations such as student loans, growing families or trying to save for a down payment on a house. This younger group is not showing any significant positive change in their retirement readiness.
When people reach their mid-forties they are much more retirement oriented and that readiness improves. While starting young is ideal, it is never too late to start saving.
Hillyer Riches specialises in self managed superannuation funds and can assist you in making retirement fund decisions. Our Caulfield tax agents and business advisors are here to help you with any questions you may have.
The survey measured retirement habits and attitudes from over 16,000 participants throughout Europe, USA, Asia and Australia. To read the entire Aegon Report click here.
Hillyer Riches Management Pty Ltd is a Corporate Authorised Representative (No 466483) of Capstone Financial Planning Pty Ltd. ABN 24 093 733 969. AFSL / ACL No. 223135.This document contains general advice only and is not personal financial or investment advice. Also, changes in legislation may occur frequently. We recommend that our formal advice be obtained before acting on the basis of this information