When the word “retirement” is mentioned, many workers feel relief since it is the most awaited moment in one’s career.
It is basically an indication that you can finally take a permanent vacation and do the things you truly love. Whether that be going on road trips with your family, travelling around the world independently, or simply relaxing at home with a book in your hands.
On the other hand, other people feel fear and dread when someone mentions “retirement.” It’s far too common for people to feel worried about whether they have saved up enough money to afford their desired lifestyle during their golden years.
If you are one of those people, no need to worry. You can be financially independent in this phase of your life even without your usual working, incoming salary. There are other ways to generate income and feel financially secure.
Here are 4 easy tips for saving for retirement to feel retirement ready:
Find your magic number
In the world of finances, your “magic number” refers to the amount of money you need to retire from your full-time job and enjoy retirement. One way to calculate this is to check the average retirement savings.
According to the Association of Superannuation Funds of Australia, you should have between $87,500 to $145,000 in your superannuation account by the time you reach 49.
By the time you are ready to retire, singles will require retirement savings of $545,000 to have a comfortable retirement. If you are married, you and your spouse need combined retirement savings of $640,000.
Check your net worth and see if you are on the right track to achieving your goal in the years to come. Meanwhile, consider seeking financial planning from reputable providers for further guidance.
Determine your desired lifestyle during retirement
Set realistic financial goals as you get closer to your retirement. To develop a plan for your savings, think about how you want to live within a set timeframe. For example, do you dream about living in a quiet peaceful town in a rural community?? Or have you always wanted to travel the world without worrying about returning to work?
By determining your desired lifestyle during retirement, you will have a better idea of your short, mid, and long-term targets in working towards your retirement goals.
Live within your means
Living within your means may sound cliche because you may have been hearing it for decades now. However, it is still one of the most important tips when it comes to saving for retirement.
So, before splurging for items and making big purchases, consider taking a day or a week to give yourself time to think about the purchase. If you decide that they are non-essentials, add the money to your retirement savings instead. Your future self will definitely thank you for it.
Hire a financial advisor
Managing your money can be tricky and overwhelming, especially if you are approaching your golden years. You may feel like a shadow looms over you, and you are running out of time to save sufficient funds.
If you are that concerned about your future, consider getting sound financial advice from professionals to help secure your income to ensure an enjoyable retirement as you envision it to be. Financial advice might just help you reach your retirement dream sooner.
You may have dreamed of enjoying financial freedom and a blissful retired life ever since you entered the corporate world.
Fortunately, turning this fantasy into reality is possible by following these 4 simple suggestions. To get further assistance on actively saving for your retirement, reach out to our experienced financial advisers.
Central Coast Financial Planning Group comprises experienced financial advisers on the Central Coast who have your best interests at heart. We can help you plan your retirement spending and assist you with making informed financial decisions to reach your goals.
Contact us today to book a complimentary meeting today.
Disclaimer: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group and Sydney.