There are many factors to take into account in planning one’s retirement, and one of the greatest questions is how much super you will need to retire comfortably. Sources have suggested that those who want to retire more than comfortably and who are aged 55 and over should be saving 30% of their annual net income each year (Eisenberg, 2016). And while each generation seems to be enjoying longer lifespans, with this comes the need to secure away more superannuation before leaving the workplace. While the age of retirement in Australia is no longer fixed, the age at which we can receive an age pension is steadily creeping upwards, and is set to be 67 by 2023. It is therefore important to have your own budget in place for when the big day arrives.
Many people spend their lives looking forward to retirement and the anticipation of finally ticking off the bucket list. In reality however, the top ten activities favoured by retirees have been shown to be some of the most mundane. While the suggestion may be that this indicates that many retirees are not making the most of retirement, perhaps the reality is somewhat different. While those who are not risking life and limb in retirement may be seen as opportunity wasters, it may be more accurate to say that retirement is the prime opportunity to relax and catch up on the everyday opportunities we miss while we work. One such study (conducted by Judy Sprod, UniSA) has recently shown that retirement simply means that we get to enjoy an extra half hour of both sleep and television, and a whole extra hour of household work with our time. The study also showed that it wasn’t the extraordinary activities which made people happier, but simply that they showed the same activities a greater appreciation when they had retired.
You hear most retired people saying “I don’t know how I fitted work in”.
The biggest change to mental health when retiring is losing all your friendship and social groups. Most people forget to plan ahead for this.
It’s very important to look at groups you enjoy being a part of or volunteering work or babysitting the grandchildren. Most male retirees find this change to be the biggest, whereas females are more organised at joining groups and functions outside of work.
What are you going to do when you retire? Have you thought past “putting your feet up”? Because it doesn’t last, and once you get bored of that you have a long time of boredom.
If you have any questions or wish to look at your own retirement position contact one of the team at Ritchie Advice, we would be more than happy to help.
This advice may not be suitable to you because it contains general advice which does not take into consideration any of your personal circumstances. All strategies and information provided in this article is general advice only.
Ritchie Advice Pty Ltd ABN 12 150 128 448, is a Corporate Authorised Representative 408050 of Dover Financial Advisers Pty Ltd, Australian Financial Services Licensee No. 307248.
