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What does your dream retirement look like?

September 2011

Maybe it’s a no-expenses-spared overseas trip, or a caravan and a wide open road. We all fantasise about it, and most of us spend years working towards it. But, achieving your dream retirement requires planning and careful decision making.

Ready…set…retire!

The average retirement age in Australia is currently 60 for men and 55 for women and with average life expectancies of men and women now around 80 and 85 years respectively¹ – you can expect to live in retirement for 20, to 30 years or more.

But why plan? Don’t we all have super? And isn’t that all we need for retirement? Unfortunately, it’s not that simple. Most Australians will find that their finances fall short when it comes to funding the sort of retirement they had dreamed of.

So, are you ready for retirement?

Whether or not you’re ready to retire depends not only on how you feel about leaving the workforce (or making a gradual transition into retirement), but also on how ready you are to make the financial leap.

Will my super be enough?

The Australian Superannuation Fund Association (ASFA) Retirement Standard states that for a comfortable lifestyle in retirement singles will need $39,302 annually and couples will need $53,729 annually². When you think about how long you’re likely to be retired for, that really adds up.

Using our super calculator is a good way to see if your super savings are heading in the right direction.

What about the age pension?

The government provides an age pension to those who cannot afford to fund their own retirement. Eligibility for the age pension and the amount you would receive, depend on a number of factors such as your income, assets and your age. But, even if you receive the full pension this will barely cover the basics, and it leaves no room for luxuries like eating out, holidays and hobbies.

Getting the right advice

It’s important to get licensed financial advice to ensure that your savings will support your dream retirement. As a Plum member you can access a team of qualified financial advisers through our Momentum Financial Advice service.

A Momentum Financial Adviser can offer real insight into tools and strategies to help you maximise your super or retirement income potential. Each Momentum Financial Adviser provides advice on a capped, fee-for-service basis for super and investments.

To start talking to an adviser today call 1300 55 7586.

¹ Source: Australian Bureau of statistics, http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/4102.0Main+Features10Mar+2011
² ASFA Retirement standard, www.superanuation.asn.au/RS/default.aspx