Save retirement from becoming a thing of the past

When we think about retirement, we naturally imagine an ideal scenario: living the easy life in comfort and style.

A retirement filled with the things we love - whether that’s travel, sports or spending more time with family – is a luxury most of us look forward to through our working years.

But choosing when to end our working years is something we’ve taken for granted for too long. While our parents may have been able to retire in their sixties, many people are now faced with a more uncertain future and may not be able to afford to retire until much later in life.

Australia has a shortfall in super of close to $1 trillion dollars, with the average super gap for a person aged between 40 and 55 almost $500,000.[2] And unfortunately, it’s an issue that affects us all.

The ramifications of this shortfall aren’t just economic; they’re social and cultural too. A lack of money in our latter years seriously challenges the dream of enjoying a long, happy and active retirement. It’s pushing people to work longer and has potential to create a new social issue: retirement as we know it could become endangered. But it doesn’t have to be so.

It all starts with awareness. Taking action now in order to increase the amount of super savings for retirement could mean you get to live your post-working life the way you’ve imagined it.

Things like salary sacrificing to super, making lump sum contributions or using transition to retirement strategies, are all smart ways of boosting your super, and usually have tax benefits too. It’s important to remember however, that while super can be tax effective, if you exceed the contribution caps you may need to pay additional tax as well as interest charges and possible penalties.

Ready to plan for a carefree future? Contact Charles Choong on 03 9654 9886 today to find out how we can help you save your ideal retirement.

Important information and disclaimer

This publication has been prepared by Charles Choong (ARN 244 731) is an Authorised Representative of Professional Investment Services (ABN 11 074 608 558), Australian Financial Services Licence 234 951.

The information provided on this website has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your Professional Investment Services Pty Ltd (PIS) Adviser before you make any decision regarding any products mentioned in this communication. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither PIS nor its related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.

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[1] ABC.net.au “Ageing Australia: a crisis or triumph?” 2 March 2011.

[2] Rice Warner Actuaries, ‘Longevity Savings Gap’, Sept 2012.