Regardless of your age, it is important to start contemplating your retirement – as with most things in life, the younger you start planning, the better!
As we all know, the best laid plans can be derailed by life events and other, more immediate focuses – this therefore makes planning for retirement even more important in order to help ensure you reach financial independence once you reach the end of your working careers.
Here are our top reasons that explain why retirement planning is crucial:
1. Planning is Critical
It is human nature to assume that “things will work out in the end” – even our financial situation. However, assumption and successful retirement aren’t usually a good mix. Ensuring you have sufficient money at retirement should never be left to chance. People who assume ‘things will work out’ are usually the ones left disappointed.
2. Provide Financial Independence for Your Family
In some families, it is the responsibility of the children to look after their parents as they age. Fact is though children can’t always be relied upon, and they have their own financial goals as well. Planning for a successful retirement will help ensure you’re self-sufficient in your later years which also allows greater financial independence for your family members and any children who thought they were up to assisting you financially.
3. Support the Retirement Lifestyle You Want
Responsibilities during your working life such as raising a family can often get in the way of retirement planning. Thoughtful retirement planning takes these responsibilities into account and can help ensure you have the finances for your immediate needs, as well as allocating savings to achieve your retirement goals – such as dream holidays, taking up new hobbies, or spending time with grandchildren.
4. It is a Risk to Rely on Your Pension
For most people, the Age Pension is unlikely to be sufficient to support the lifestyle they want in retirement. The purpose of the Age Pension is to supplement your living expenses, not be your sole source of income. If it’s a financially independent retirement you want, you need to build your retirement nest egg – the Age Pension alone won’t cut it
5. You Always Have Enough Money to Save for Retirement
Guaranteed Employer Super Contributions are unlikely to be enough for the future you desire. You need to be saving extra along the way to really boost your wealth to a point where you can live the lifestyle you want.
With enough discipline, careful planning, and sound advice from Endorphin Wealth, you can always find that little extra to save for retirement. You will thank yourself later on for doing so.
How We Can Help
Endorphin Wealth can provide you with expert financial advice and help you develop strategies for planning your retirement. For an obligation free discussion, call us on 03 9190 8964, or email us at email@example.com.