Do you dream of living comfortably at home as a retiree without worrying about money? For the majority of the people, the goal is the same. However, a huge proportion of people don’t even know how to plan such a comfortable retirement for themselves.
Whatever your wish may be after the requirement, one thing that is common is prior planning. Just like you have plans ready for major and minor steps in life, having one for retirement is extremely necessary. Here is what you have to know to plan a safe retirement.
When can you access your super?
Super is the first thing that strikes our minds when we think of retirement. But do you even know when it will be accessible to you?
When it comes to accessing the super, there is a set age you need to be. This age is called the preservation age, and for the people born on 1 July 1964 or after, it is 60. However, for the people born before it, the age is lesser.
For example, for the people born before 1 July 1960, the preservation is set to be 55. Between 1960 and 1964, the preservation age is also different. Thus, you must check the age when your super will be accessible.
How much is needed?
Just because you have reached the age of retirement does not mean you are financially prepared for it. Having enough money to survive after retiring is a basic requirement for every person. So, how much do you need to retire at age 60 in Australia?
This amount will vary from individual to individual, depending upon the kind of life they wish to pursue in old age. Your marital status, whether married or single, will also affect it.
ASFA, or the Association of Superannuation Funds of Australia, has given an estimate of this amount. For an individual who owns his home at age 65 and does not have major health issues, $43,687 is required annually. This amount is only for singles or somebody without a partner, while the figure rises to $61,909 per year for couples.
What are your income options after retiring?
Here comes the primary worry, what are the income options for a retiree? Mainly there are three sources that you will get an income from. They are super, assets and the government age pension.
1. Super
Super is the first thing that strikes our minds when we think about a stable and comfortable retirement. Are you wondering, “How much super do I need to retire at 60 in Australia”? Well, you have to consider multiple factors for this estimate, such as your life expectancy, financial situation, area of your residence, aged care and health.
2. The assets you own
This income source needs thorough planning. You can manage your assets and savings smartly to generate some income. For instance, you can consider downsizing your home if you live in a big one. The received amount can be invested to generate a stable income.
3. Government age pension
Roughly 62% of Australians who have passed 65 years of age are receiving a whole or a part of the government age pension. There are some necessities to be eligible to receive this pension. If you qualify to do so, you will receive payments on fortnight.
In case you are still worried about it, reach out to a professional, like Clear Tax Accountants in Melbourne, to plan your retirement efficiently. Clear Tax Accountants is a team of professional and experienced tax accountants who can help you achieve your financial goals.
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