Enjoy Retirement the way you'd like to live

From 1 July 2022, your employer was required to contribute 10.5 percent of your salary to your Superannuation fund.?Further increases are already written into law which will see this increase to 12 percent in coming years.

In Australia we’re fortunate to have one of the best retirement savings systems in the world.?These contributions will grow steadily over the years and provide an income stream when you stop full time work.

But is this enough for you to enjoy retirement your way?

Many financial advisors and investment specialists recommend investing 15 percent of your before-tax household income towards retirement.?

Naturally this is a rule of thumb, and everyone’s situation is different.

Consider these tips to optimise your Retirement savings.

1.????Assess your future income needs

Look at your current spending to predict your future income requirements. The higher annual income you need/want in retirement, the bigger the nest egg you’ll need.

Start by listing your typical monthly expenses as they are today. Some expenses will stay the same, some will go up, others down, or — best of all — disappear in retirement. ?Now estimate your expected retirement expenses and multiple it by 12. This will give you a rough idea of the annual income you’ll need for retirement.

2.????Take control of your income

Money is great at following orders, and that’s essentially what a budget is – a list of instructions for your money.?It allows you to take charge and tell every dollar the job that you want it to do.?Your income is your greatest wealth creation tool. But this only works when you are intentional and become the boss of your money.?It pays to follow a money plan that is aligned with your goals.

3.????Get out of Debt

Ideally, you’ll wave goodbye to your home loan and other debts before you stop full time work.?Start with your non-housing debts first.?Focus on getting these paid off before you consider increasing your retirement savings.?Getting these debts out of your life (forever) will give you the extra income you need to increase your retirement savings and pay off your mortgage sooner.

4.????Make savings a priority

Keep your eye on the prize. ?A budget is a great way to make sure your money is working for you.?You’re paying attention and being intentional with your spending and saving so that you can enjoy the type of retirement you dream about.

We all have financial responsibilities—children, parents, home renovations, the rising cost of living and other items. ?However, the years flash by quickly and your retirement is too important to ignore.?This explains why it’s so important to control your money and take positive action starting today.

5.????Keep on top of your retirement goals

Conditions change, and your retirement needs will change with them. Whether it’s a new job or a new passion for traveling the world once you retire, it makes sense to complete these retirement calculations every 1-2 years. ?It is always better to adjust as you go rather than be forced into a game of catch-up down the road.

?You can do it.?Like many money matters planning for retirement can seem complex and a bit daunting.?

But don’t put your head in the sand or believe that it isn’t possible for you to build your retirement savings.?

The key is to act now and develop the new behaviours and skills that will help you to Win with Money.?

Be the Boss of Your Money and you’ll be a long way ahead when retirement arrives.

Would you like to take your money to the next level? Send a DM to chat.