We all Need a Retirement Plan- What's yours?
One of the most important of all elements to well-transitioned retirement is putting a plan in place. As part of the Freedom Consultation, getting our clients to understand what their retirement will look like is an important step.
- What does retirement mean to you?
- What do you want to do during your retirement?
- How much will your retirement cost each year?
- What will you need as a nest egg on retirement?
Lastly, we get clients to understand their current financial situation and the critical differences between their retirement dreams versus their current realities.
Recently, the government commissioned IbisWorld to compile the 2026 Report. This is used to get an understanding of the size and shape of Australia and where public and private infrastructure spending needs to occur to meet the needs of a growing and dynamic nation.
As part of this was a wage index that forecasted the average male wage in 2026 would be approximately $196,000 per year. This, coupled with studies by APRA and the Citibank Retirement Index also revealed that moving forward most retirees believed they will need approximately 70 percent of the average wage (or $137,200 per year) to meet their desired standard of living during retirement.
This means that someone who will live for 20 years post-retirement in 2026 will need a proposed nest egg of approximately $2,744,000 (before inflation or indexation). Nearly $3 million.
On average, once clients consider their own needs and costs for retirement, most concede that they will need a nest egg of more than $2 million to fund their twilight years.
It’s about having choices
Making the decision to plan to improve your chances for a successful retirement with financial security is all about having a choices. The choice to live the way you choose. The choice to go on holiday, to have that all-important surgery. The choice to offer to pay for the grandkids’ school fees. Whatever your goals. Whatever is really meaningful to you.
Failing to plan can place significant stress on working Australians as they enter retirement. Already struggling with the change in routine, the lack of structure, and workplace social interactivity, we often find that not having financial security during retirement can lead to marriage problems, sickness, and mental health issues. One way to help prevent some of these issues is to ensure that we mitigate the risk and the unknown of the landscape for retirement.
The Self-Funded Freedom Plan with Investment Property
The Self-Funded Freedom Plan works with everyday working Australian families to achieve greater financial security through successful property investment.
Our Plan is more than just buying an investment property, rather it’s a systematic regime that helps our clients passively improve their net investment wealth through increasing income-producing growth assets while reducing debt. Over time, it delivers a platform, alongside other retirement planning strategies, for equity and net wealth, regular passive income, and greater choice.
If people don’t have a plan to make the successful transition from a forty-year working career to retirement, it can have a serious effect on their lives and the relationships they have with loved ones.
Preparing for retirement should commence from the day you enter the workforce.
Don’t wait any longer, contact us below.