Planning for Your Retirement

We all want to be able to enjoy our retirement with no money stress. One way to achieve that ideal is to have a super fund that really works as hard as you do. While you can still claim a pension, we all know that the cost of living in Australia is rising way faster than any pension increases, so it’s hardly going to provide enough cash flow to live comfortably and do the things you really want to do.

Combine your own savings and investments along with a superannuation fund, and you’re basically setting yourself up for the rest of your life.

Superannuation Briefly Explained

It’s really a series of investments managed by the super fund that enables you to save for retirement without you having the temptation to dip into the money. Unlike a bank account, which you can access any time you like, apart from special circumstances, you can’t touch your super fund until you reach retirement age.

If you do encounter any issues with your superannuation provider, or desperately need to access some funds in an extreme emergency, superannuation dispute lawyers are there to help.

How Much Super Will You Need?

This is a very open-ended question. It really depends on both the lifestyle you’re currently accustomed to and the kind of life you wish to lead when you do retire. Some people are happy to stay home and tend to the garden or work on a hobby, while others may desire to travel the world, experiencing adventures they’ve never had before.

The size of your super fund will depend largely on how much is contributed to it. If you just rely on employer contributions, it’s going to be a lot less than if you contribute extra into the fund over the course of many years.

You may be an avid saver and are building up a very comfortable nest egg. In this case, you may not need a huge superannuation payout.

How much you’re going to need in super really depends on your personal circumstances. It will also depend on how many years you spend in retirement, something none of us has a definitive answer to.

What About Superannuation and Insurances?

Via your super fund, you can take out various insurance as well, including things like life cover, permanent disability cover, accident insurance, and salary continuation insurance.

This way you are more than doubly covered, giving you all-round peace of mind regarding your future.

You know you’re building up that all-important retirement nest egg, as well as knowing that you’re covered in the event of a serious accident or unforeseen circumstances.

Does Market Volatility Affect Your Superannuation?

Superannuation funds spread the risk factor by investing your money in a variety of different options. This helps avoid potential losses if one investment avenue proves less than profitable or is greatly affected by what’s currently happening in the stock market.

That’s one reason why super funds won’t put all funds into shares. Your money is distributed into many different investments to maintain growth.

A high growth investment strategy for your super fund is always going to be riskier than the slower growth of a life stage fund with more defensive strategies.

Overall, your super is a long-term investment, so there’s really no need to panic if the stock market falls, as not all of your money will be tied up and shares anyway. Aside from that, the market always eventually recovers.

Plan for Time and Money Freedom

For many people, the retirement years offer an opportunity to catch up on things you’ve always wanted to do but just haven’t had the time freedom to accomplish.

The idea of building up a nice nest egg for retirement isn’t just to merely survive but to be able to thrive.

You now have all this extra time on your hands, but you’ll want extra money to enjoy that time to its fullest extent.

The real goal of superannuation is giving yourself total freedom of having both time and money, at the same time. That’s really the ultimate scenario everyone should be aiming for, and that’s why it’s important to fully understand your super and choose the best fund and strategy to suit your future lifestyle.