Which restaurant would you prefer to dine in when YOU reach retirement???

With more & more people living longer, retirement planning is becoming critical to ensure your funds last for 25 years in retirement.

RIVER rest

 

 

 

 

If you have planned your retirement, then you will most likely be financially secure during this phase of your life. However, if you failed to plan for your retirement, then you will have significant issues ahead

Let’s look at 2 examples of couples at age 67 about to retire!!!

Planned for retirement

  • They own their own home – no mortgage or rent to pay
  • $550,000 is super
  • Own 3 investment properties – positive cash flow supporting their super income
  • Comfortable lifestyle – will not need to rely on the pension – which may not exist when we retire

Failed to Plan for retirement

  • Owe $200,000 on their home – will have to keep paying the mortgage
  • $200,000 is super – well short of the required amount to retire comfortably
  • Do not own any investment properties
  • Will still need to work if they want a good lifestyle or rely heavily on the pension. They could use their super to pay off the debt, but then they will only have the pension to live on

Which option do you prefer????

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Ok you say, but I have over 20 years until I retire – so can’t it wait!!!

Each week you do not contribute to your retirement funding objectives as calculated (based on the example below) below your are behind $2,185 every single week. or 113,620 per year which has to be made up somehow….usually by settling for FAR less than you imagined in retirement.

Let’s look at the below example:

A person 45 years of age looking to retire at age 67 with a targeted future income of $100,000p/a in retirement for a period of 25 years needs to save $2.5m or $2,185/week for the remaining 22 years of their working life. How many people at age 45 can manage that – realistically!!! not too many. This is where investment advice becomes critical.

So what can you do???? Look seriously at the equity in your home because holding that equity is costing you big $$$$$ and releasing that equity could go a long way towards solving any retirement savings shortfall by helping you grow your property portfolio and generating solid income for your retirement.

 

If you’re uncertain or want to ask a question get in touch with our team:

peter@zenithpropertyconsulting.com.au or steve@zenithpropertyconsulting.com.au

or call us on: 1300 854 552

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