Ever wondered about retirement here in Australia? Nervous if you can even afford to do it? How does the pension actually work?
Let’s break it down
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The information provided on this site is based on my own personal experience and is not to be construed as professional financial advice. The contents of this site and the resources provided are for informational and entertainment purposes only and do not constitute financial, accounting, or legal advice….(read more)
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retirement planning may seem like a daunting task, but with the right strategies and guidance, it can be easier than you think. Planning for retirement can ensure that you have the financial security you need to enjoy your golden years without worrying about how you will make ends meet.
One of the first steps in retirement planning is to determine your retirement goals and estimate the amount of money you will need to fund those goals. Consider factors such as your desired lifestyle, healthcare expenses, and potential travel plans. Once you have a clear picture of your retirement goals, you can start developing a plan to achieve them.
One key aspect of retirement planning is saving for retirement. Start by contributing to a retirement account such as a 401(k) or an IRA. Many employers offer 401(k) plans with matching contributions, which can help you grow your retirement savings faster. It’s important to regularly review your retirement savings and make adjustments as needed to stay on track with your goals.
In addition to saving for retirement, it’s important to consider other sources of income during retirement. Social Security benefits can provide a portion of your retirement income, but it may not be enough to cover all of your expenses. Consider other income streams, such as investments, rental income, or part-time work, to supplement your retirement savings.
Another important aspect of retirement planning is managing your expenses. Consider creating a budget to track your spending and identify areas where you can cut back to save more for retirement. By reducing unnecessary expenses and increasing your savings, you can build a more robust nest egg for retirement.
It’s also important to consider how you will protect your assets during retirement. Make sure you have a solid estate plan in place to ensure that your assets are distributed according to your wishes. Consider purchasing long-term care insurance to protect against potential healthcare costs in retirement.
Overall, retirement planning doesn’t have to be complicated or overwhelming. By setting clear goals, saving consistently, managing expenses, and protecting your assets, you can create a solid plan for a comfortable retirement. With the right strategies and guidance, planning for retirement can be easy and rewarding. Start planning for your retirement today and secure your financial future.
Great video, One primary concern is the uncertainty surrounding the future cost of living. Inflation can erode the purchasing power of your savings over time, affecting the quality of your retirement.
You have a clear communication style that makes it easy to listen to and learn about a somewhat daunting topic. My wife and I are approaching the time where we need to be more sure about our strategy for savings, super and pension. I am wondering, do you provide a general advice service on demand (not necessarily professional advice)?
A very depressing video when you don’t have lots of superannuation or savings. So much for living the Australian dream .
Thankyou for some simple retirement advice which is about Australia. I'm 59years old and just $100K short of that $700K target with my Super and the small contributions from the wife. I already own my house. My Super appears to be earning +$50K a year so i know I'm on track to a self funded retirement any time from 2years ahead. But like most people I'm worried that i should continue working longer just to be careful. I intend to talk to my super fund about the pension stream given I keep working next year. I've already changed jobs to less stressful position with less pay. What really kicked my super up was that when i was 35years old for 10years i contributed 20% of my high income into super. 17% from Uni and whatever from a part time job. Before and after that period my super contributions were 10% or less.
For many low-income earners, and single Mums who supported kids on one income, or found themselves single with no support, superannuation is someone else's dream, the pension becomes the main income.
Stuff super its the great Australian con job, we are told stick as much as you can into a non performing super fund yer right ,they make the money not you, then you lose some or all of you pension, just buy $300K in dividends producing shares get at least 10% with the franking credits and full pension there is your 50K per year and your balance never disappears after 10-20 years unlike super.
Thanks for a great video. I find super very confusing. I agree if you can be self funded is the best option, but I can’t figure out how much that is if you have minimum drawdown % by age then wouldn’t eventually you would drawdown below the limit to get a part pension?
Is there a way to calculate how much you would need to start at age 60, taking minimum % and never go under the maximum by say approx age 85 (current life expectancy) is that something you could work out as a guide to aim for? Thanks again, your content is helpful in getting an understanding.
So apparently i need $50 to $70 thousand a year to be comfortable life. Well i only earn $45000 now, you people are nothing but a bunch of clown. You should put a warning up at the startof this video, by saying, must be a doctor or lawyer to watch this video?
If you have 700000 by the end of your working in super, u can say good bye to pension. But anything less s not enough. So in conclusion, you can either make your own way and do it well or be an absolute bum and wait for the pension every 2 weeks
Love your attitude about not relying on the government to fund retirement. It is quite likely as the years go by the government pension rules will change and it will be much harder to qualify.
What's the point of a couple with a home having super between $450K (full pension) and $1m (no pension)?
Isn't anything above $450K just leading to less pension? Does the pension reduce dollar for dollar above $450K?
Thanks for the vlog and I just want to clarify a point that you appear to have made a mistake with. You said a couple would need $690000 or thereabouts to fund a comfortable retirement without relying on the age pension. This is not correct as ASFA states that a part pension would need to be taken with the self funded portion to get to that comfortable lifestyle annual amount of about 70k.
I am on the CSS Defined Benefit Pension earning over $30,000 a year. I also receive nearly $600 a fortnight from my part pension. Early next financial year I am adding to my growing accumulation account in super, for a total of S600,000. Which I will commute to a Lifetime Annuity Pension which Centrelink only look at now 60% (360,000) under the Asset Rules, but the income is tax free! You can only put in $110,000 a financial year in the non concessional after tax format. But you may use the grandfather rule of putting a three year total of $330,000, as I am in july! Also Hostplus can give you a pension 0f 6% (instead of 5% that I have to at least drawdown on) as it is in line to the current CPI rate to cover inflation! Under the asset rules this will dramatically reduce my part pension, as I hope to keep under the fortnight threshold which presently is around $2332.00. But with two pension and threshold rises on March 20th and September 20th, I may wait to the September one to ensure that I may receive at least $1.00 part pension to still receive the all important Health Care Card! Hope this makes sense as everyones circumstances are different.
Thanks for the no nonsense info. It is worth emphasising that the given figures for a comfortable retirement are based on owning your own home and accessing the pension in later years as the super balance is drawn down.
Do you have a video on concessional vs non concessional contributions? I’m maxing salary sacrifice but I’m starting to consider how I might be able to top up the super balance to well exceed ASFA’s comfortable super balance and retire at 60 with some youth left to enjoy it.
We bought a retirement unit many years ago so We plan on selling the house and making a downsizer contribution – adding $1,260,000 to our $1m super balance. We want to convert $2M of that immediately to a life annuity. Do we have to retire first? – or are we limited to the TTR limit of 10% of our balance. Our thought is – we are risk averse, the annuity will have $100,000 or so annual income indexed to inflation which covers all or needs and we have other investments and remaining super to top up income…..maybe even an inheritance! Can we but the annuities without retiring?
Mid 2026 I reach 67, I have about $173,000 right now in super, I am debt free and own a home, and less then 10k in the bank as I have nearly reduced my work hours to near nothing ( life style choice), I am off grid, own water etc, small rural village and less then $1,000 rates, With a single age pension in about 2 years time and a draw down on my super of about $200 a week at 67, I will not be rich but comfortable, as I am now
Very useful video