How can you be financially secure for the future?
Australians have increased their life expectancy significantly in recent years. A recent report showed that Australia is now ranked number 7 in the world for life expectancy.
This means that 30 to 50-year-olds can expect to possibly live at least 90 years. While this is certainly cause for celebration, it also means that people will need to plan for a longer retirement and more years of funding after retirement.
What does this mean for you?
The Future of Retirement report from HSBC shows that Australians have a high savings gap compared to other countries. Over 40% of the working population doesn't have a strategic plan for their retirement. This is a serious problem that needs to be addressed.
What can you do?
Start early - Starting early is the best way to save more for your retirement. With current retirees expected to retire 11 years later than previous generations, it's important to start saving as soon as possible. This will allow you to take advantage of compounding interest on your savings and explore more options to get the most out of your investments.
Plan ahead - It's important to have a long-term financial plan to fund the retirement lifestyle you want. To do this, calculate your income and expenses, and create a budget to maximise your savings. Then, determine how much money you'll need during retirement and what assets you have that could help cover this cost. For example, do you own a property or are you planning to purchase one? Additionally, consider how much superannuation you'll need and if you're eligible for a government pension. By taking these factors into account, you can develop a strategy for saving for retirement.
Visualise your retirement - When you're creating your retirement plan, it's important to consider how you want to spend your time. Do you intend to travel a lot? Take up a new hobby? Work part-time? Knowing this will help you calculate how much money you'll need to support the lifestyle you desire. This information can then be used to create a financial roadmap for your retirement.
Get debt-free sooner - If you're finding it difficult to make your monthly payments on time, you're not alone. However, there are some steps you can take to break the cycle and become debt-free sooner. For example, refinancing to a lower interest rate, making additional repayments or paying fortnightly instead of monthly, and choosing a loan with essential features like redraw facilities can save you money and help you pay off your debts more quickly.
Get expert strategic planning - When it comes to making financial decisions, it's always better to consult with an expert. That way, you can avoid the guess-work and get accurate information about your personal investment options.
If you have any questions, Oracle Group are here to work alongside you, as your partner. We are with you at every turn to ensure that as you grow, we grow with you.
We work with you to build your wealth, and most importantly our partnership with you for the long term. We are here to see you into the future and build a strong foundation of trust and mutual achievement.