think about retirement

The earlier you start thinking about your future, the easier it will be to make your retirement dreams a reality. It’s all about understanding the type of lifestyle that you want to have during your retirement years and how to be strategic about planning for the future, even if that means contributing extra.

What is your ideal retirement lifestyle?

If you have already thought about the type of lifestyle that you desire in your retirement years, you’re already one step ahead of the game. Maybe you have dreams to travel, finish work early and enjoy the finer things in life. You may picture yourself having a simple and easy lifestyle with no frills.

Either way, the best way to start planning is to have a rough idea of your future and the financial commitment needed to get there. This will impact how much you need to save now to reach these goals. It takes a long time to save up for retirement so getting in early is the best way to make sure you’re able to achieve your hopes and dreams, whatever they may be.

Be strategic with your superannuation

Research by the Association of Superannuation Funds of Australia shows that 40 per cent of people aged under 30 have no idea how much money they have in super. It’s very easy to set and forget your superannuation strategy at a young age. You may find yourself choosing a fund when you start your first job without giving much consideration to which fund you choose. But at a young age, small changes to the way your super is organised can make a big difference in the long run. 

Make additional contributions if you can

Throughout all stages of life, It is important to think about super contributions. Although retirement may feel like a lifetime away, the earlier you start saving, the better your finances will shape up at the end of the day. It all comes down to compound interest and being able to make ‘interest on your interest’ over a significant period. It is important to consider co-contributions and speak to your Financial Planner about other strategies that will help you get ahead now, while you’re still in the workforce.

Ready to start planning your retirement?

A Financial Planner will be able to help you organise the right plan to suit your needs and goals. Get in touch with the team at APS Financial Planning to learn more about super contributions and the best strategy to help you plan for a healthy financial future.