Retirement may seem like a long way away, or it may be just around the corner depending on where you are in life. Regardless, superannuation savings is often an afterthought until people get close to retirement age and then they’re left wondering if they’ve saved enough? Don’t be left in the dark wondering if you’re going to be able to make it through your retirement years living comfortably or if you’re going to come up short. If you’re wondering how much money you need to save, use these simple tips and strategies to help you formulate a number you can go by.
Before you begin on your journey in figuring out how much money you will need to save, you need to calculate what you already have set back. This will give you a good starting point on determining how much more you need. If your current savings is low, now would be a good time to research superannuation and other savings options.
Will you still owe on your home loan? Do you plan on paying for your children’s education expenses after you retire? Are you going to have credit cards and other debts to pay on? Remember, when you’re planning for retirement, you may be carrying over debt from your non-retirement years that you will still need to pay. Or, if you’ve been able to pay off your home loan and other regular expenses, that’s money that’s free to currently invest into your retirement plan.
Do you plan on staying in your current home or are you going to travel around the world? The expenses for each are drastically different. No two people are alike and therefore your retirement needs are going to be different from others that you know. No matter what your age is, make a list of what you want to do when you retire and the kind of life that you want to lead. Now, factor in inflation costs to make sure you’re covered.
Whether you’re close to retirement age or not, unexpected things can happen in life. If you get sick or injured, or unfortunately pass away, you more than likely want insurance protections in place for your spouse and family so that they can continue to effectively plan for retirement even if life doesn’t go as planned.
Now that you’ve taken these tips into consideration, the next step is to use a superannuation calculator to make it easier to add everything up. There are a few to choose from, including plenty of calculators to choose from, including ASIC and Your Mortgage.