More than half of Australians think they won’t have enough money to retire, but do nothing about it.
Retirement is a dream that is moving further and further out of the realm of possibility for many.
In reality, new research shows 53% of Australians worry they won’t have enough money to retire when the time comesand an even scarier number is that more than half of those people do nothing about it.
I constantly hear stories of people delaying action and change because they think they have the time or it’s too difficult, and by the time they’re ready it’s too late.
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I want to encourage people to think about their plan B as soon as possible. Even setting up a $20 per week direct debit from your super when you’re 20 means you’ll have a huge amount of money when you retire.
If you’re one of the many who want to improve your financial situation to better plan and prepare for retirement, but just don’t know how, here are my top tips for getting started.
1. Decide how you would like to spend your retirement
Would you like to travel the world? Is your goal to retire abroad? Or do you just want to live a comfortable life in the home you own?
Either way, it’s a good idea to start thinking about what retirement looks like for you. This way you have a goal to achieve and it makes daily changes easier.
2. Understand how much it will cost
Once you have an idea of how you’d like to spend your retirement (and you’re allowed to change your mind, don’t worry!), it’s a good idea to start thinking about what it might cost by year.
This will give you an idea of what contributions you should be making to your super or savings right now.
The dollar amount will probably shock you, but it’s important to realize this as soon as possible.
3. Invest in your super fund
And I’m not just talking financially. You need to take the time to understand your super and how it will benefit your future.
If you have multiple balances, you might want to start thinking about how to consolidate them to make it easier to manage your money.
Calling your super fund to ask what other options they have to help their members, whether it’s free webinars or personalized financial advice, can boost your account by thousands if you stay proactive.
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4. Take baby steps and stick to them
The sooner you start investing in your future, the better.
However, the thought of retirement and money can be stressful, so taking the time to assess what you want and having a clear, digestible plan in place will help you achieve your goals.
You will probably have setbacks, but every step you take today will greatly benefit you in the future.
Any action you take today, big or small, will have a huge impact on your future. It may seem scary to start this journey, but the sooner you do it, the more stability and freedom you will have on the trail. Trust me, your future self will thank you!
Vanessa Stoykov has over 2 decades of wealth building experience, is a bestselling author, and is on a mission to help Australians become money conscious.
Warning: The views and opinions expressed in this article (which are subject to change without notice) are solely those of the author and do not necessarily reflect those of Finder and its employees. The information in this article is not intended to be and does not constitute financial advice, investment advice, business advice or any other advice or recommendation of any kind. Neither the author nor Finder took your personal circumstances into account. You should seek professional advice before making any other decision based on this information.