Time, Money and Retirement

Posted on: 29.04.2016

The Statistics

According to the Australian Bureau of Statistics, the average life expectancy in Australia is around 82 years of age. The average retirement age is 58, and the average income or salary is approximately $1500 per week as at the end of 2015.

Preparation for Retirement

Whether it’s shares, property or business, $1500 per week should be enough to help you set up for a bright retirement. One of the best ways to prepare for retirement is early in life.

Salary sacrificing and extra home loan repayments are just a few of the basics to achieve a stress-free retirement.

It’s important to look at the big picture and sacrifice small amounts of money over a long period, as opposed to large, stressful sacrifices later in life.

For example:

Based on the average income of $1500.

A $400,000 home loan on a 30 year term at an interest rate of 6% (principle & Interest), is approx $2400 per month. Leaving you with $3600 for other living costs each month. This is also enough to put extra contributions into superannuation or other investments.

Fun facts: If you set up a reoccurring direct debit of $100 per week (of additional contributions) into your Superannuation:

• You may be eligible to claim the additional super contributions as tax deductions.
• It will add up to more than $104,000 over 20 years. (not including potential returns from keeping up to date with and moving to the top performing funds).

By owning a $400,000 property and over $104,000 of additional superannuation contributions. You should have a fairly solid base for retirement at this point. It’s important to remember as well that as your wealth increases, doors will open for further blue chip investments. The sky is the limit.

Summary

The example above is a very basic one, however the overall goal is clear. It’s very important to think about the future and set small amounts of money aside weekly. Whether it be extra home loan repayments, super contributions or other investments. Small contributions over long-term will always beat scrambling for a stressful solution later in life.

To optimize savings on your Home loan or investment property today, get Kirsty Gray to call you for a friendly chat by following this link – http://www.uprosper.com.au/contact/