Based on 2017 survey only 10% of Australians feel very well prepared for retirement, 50% people retire earlier than they planned to, and 37% of them do so due to health issues. So retirement will come, in a large chance, earlier than you think and if you don’t have a plan in place today, you may have to settle less than you deserve for the quality of your retirement life, which can last 30 plus years.
Retirement used to be defined as a certain age when people stop working and start receiving government pension, which could be 60 or 65 years old. Today, most of us won’t be able to receive government age pension until 67 years old, and how much pension you receive depends on your assets and income. How about superannuation? We have to wait till 60 years old, and how much you have depends on what you put in today and how it’s invested.
So what if you wish to stop early? Can you afford to? You CAN as long as you have enough money to support your lifestyle, whether it is $30,000 or $300,000 a year, but it has to be generated from the assets outside your super.
We believe retirement is no longer a definition associated with a certain age and ceasing employment, it should be a definition of financial outcome and a choice of lifestyle, which means as long as you have accumulated sufficient assets that generate a regular income to support your chosen lifestyle, you can call yourself having retired. You may still be working, but you don’t work for money, you don’t have to work, you only work for passion.
Here are the steps for your retirement
1.Think what kind of life you want to live, keep it realistic and basic. Please note It is different from your dream life.
2.Work out how much money you would need to support such lifestyle.
3.Start an investment plan outside your super as early as possible to build your asset.
4.Don’t forget to build another asset – yourself, your most valuable and greatest asset among all. Find out what you are good at, keep learning and improving, set up a goal of becoming one of the best of your chosen field.