Will you have enough money to keep up with your lifestyle in years to come

Will you have enough money to keep up with your lifestyle in years to come

Adam Mondy

As we near retirement we want to believe that there will be enough money to see us through the next phase in our life. Retirement should be a time without money worries with the possibility of extended visits to far-flung places, outings and lunches out with friends and family.

Women traditionally have not paid as close attention to their Superannuation as their male counterparts. There are a number of reasons behind this but in order to plan for their retirement the first step really should be working out if their Super is working hard enough.

One of the main reasons women tend to disengage with the notion of Super is due to their absences from the workforce when they have children.

Often they return to work in a part-time capacity resulting in a further drop in their income and a reduction in Super contributions. Inevitably this leads to a feeling that it’s all ‘too difficult’ leaving the concept of Super in the ‘too-hard basket’.

The fact is that women tend to live longer than men and in many cases retire earlier, so that little nest egg really needs to be able to stretch.

What can we do about this?

There are various approaches that can be explored to maximise the amount in our Super at retirement age. The main thing to remember is it’s never too late to start diverting savings into Super – adding more money to your retirement future while maximising the ‘transition to retirement’ scheme when it starts at age 55.

Salary sacrifice can be implemented at any age but it must also be remembered that the Government places limits on contributions into super.

Once we reach 55 we can look at a transition to retirement plan. An example would be a person earning $80,000 a year with a current Super balance of $100,000 would have approximately $274,000 in Super on retirement. With the help of a transition to retirement plan; the final super balance would be increased to $350,000.

A massive boost of $76,000 over a ten year period! The best thing is that the person will maintain exactly the same take home income they had before the strategy was implemented with the bonus that nearly all of her superannuation is in a tax free environment.

It’s never too early to start looking at our Super so that we can enjoy our retirement without worrying about money.

Please note: – This information is of a general education nature and should not be acted on. Individual financial circumstances vary and a tailored solution, specific for your financial situation, should be developed in consultation with your financial planner.

For more information contact Adam Mondy 0431 517 455

Mondy Financial Services
Andera Turner-Boys About Andera Turner-Boys

Andrea is a facilitator, trainer and speaker, mentoring women to achieve their goals and growing her network of women whom she believes are ALL inspiring women in their own right. Follow her on her Twitter, Facebook, LinkedIn,and Google+

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