Retirement is a time when many individuals look forward to stepping back from the workforce and enjoying their golden years. However, for a growing number of retirees, the reality is far from this idyllic vision.
For those reaching retirement age with insufficient funds in their superannuation account, the experience can be a daunting and stressful one.
With the cost of living increasing and longer life expectancies becoming the norm, it’s becoming increasingly important to have a solid savings plan in place to ensure a comfortable retirement. However, for many people, it can be difficult to build up a significant nest egg by the time they reach retirement age.
Many individuals may find themselves in this situation due to a variety of reasons such as lack of understanding of the superannuation system, insufficient contributions over the years or unexpected life events.
It’s important to note that all is not lost, as there are still strategies that can be implemented to boost your savings and ensure a comfortable retirement.
If you have found that your superannuation fund is not up to pace to cover the cost of a comfortable retirement, Founder and CEO of Stockspot, Chris Brycki highlights “three simple things soon to be retirees can do “to top up their super:
“If they [soon to be retiress] are not yet ready to retire financially, they should be looking at paying down any debt they might have (mortgages, credit card debts) and seek to live within a budget,” Brycki suggests.
“That is, ensure their income will be able to cover any expenses.”
Sydney based Wealth Coach Andrew Woodward from The Investor’s Way assures soon to be retirees that there are “things you can do to reach your goal”.
Woodward suggests that “if you are short of your asset goals” then “increase the amount you are putting into superannuation”.
“The best thing you can do while still working is increase the amount of money from your current income that you are investing or putting into superannuation,” Woodward says.
“Be sure you are taking advantage of the tax benefits for additional contributions to your superannuation, which can be done from pre or post tax income,” he adds.
“If you are able to divert some of your pre-tax income to superannuation you can accelerate the growth of your assets.”
Woodward advises that ” the simplest way to reduce what is required in retirement is to reassess your lifestyle and adjust your spending to align with what assets you have available to meet you expenses.”
Another measure that can help increase the amount you have in your superannuation is to “increase your income”.
“While you are thinking more about retirement than you are working harder, maybe an option to increase your income is available, this could include working more hours,” Woodward says.
“Since you are seeking to retire this would only be a short term plan to get you closer to where you need to be financially to retire.”
Finding ways to top up your superannuation fund can be a smart financial move for ensuring a comfortable retirement.
By being mindful of your spending, finding ways to increase your income, and seeking professional advice, you can make the most of your savings and ensure that your money lasts throughout your golden years.
IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.
Proudly Australian owned and operated