Planning your biggest holiday

It seems crazy to think that we spend countless hours planning our next holiday, but little to no time planning the longest ‘holiday’ we’ll ever take – retirement! 

According to travel industry research, the average person spends 10 hours planning each holiday they take. Unfortunately, this kind of meticulous planning is often not applied to retirement. As a result, many people don’t end up with the retirement that they imagined.

It’s time to start planning the best holiday ever!

Plan your ‘holiday’ budget

One of the first things we do when planning a holiday is to come up with a holiday budget, which determines how long we can vacation, how much we can spend and what types of activities we can enjoy, to name a few. 

The same goes for retirement: how much you have at retirement will determine how well you can live once you’ve stopped working. So how much do you need? To give you an idea, ASFA* estimates that a couple aged between 65 and 85 needs around $62,000 per year to maintain a comfortable standard of living in retirement*.

Do you know much you’ll have for your retirement? To help you work it out, use our Retirement Income calculator.

* Source: ASFA Retirement Standard – https://www.superannuation.asn.au/resources/retirement-standard

Plan how long you need your ‘holiday’ money to last

Retirement will probably last a long longer than you think. In fact, on average we spend 25 years in retirement, so it’s important that your money goes the distance.

Because we’re living longer than ever, it’s important that your money continues to provide investment earnings – even after you’ve stopped working. As a general rule of thumb+, your retirement income is made up of 10% contributions made during your working years, 30% investment earnings before retirement and 60% come from investment earnings in retirement. The lesson to learn here is that our money has to keep working for us in retirement.

A handy resource is our Pension Drawdown calculator, which can give you an idea of how long your retirement savings could last. links to https://www.maritimesuper.com.au/resources/calculators

+ Russell Investments 10/30/60 Retirement Rule is based on a balanced-style portfolio made up of approximately 65% shares and 35% bonds, and assumes contributions made from age 25 to 65, with 25 years in retirement.

Plan to get help from the experts

We get the help of travel agents to ensure that our holiday goes exactly to plan. Well, the same applies to retirement – call in the experts! 

Our financial planners can work with you to set goals and come up with strategies so that your retirement is everything you dream of. They can help with:

  • transition to retirement strategies
  • budgeting in retirement
  • tax minimisation strategies
  • investing your pension 
  • Age Pension and other social security entitlements
  • estate planning,

so the only thing you won’t have control over once you’ve retired is the weather!

Call Member Services on 1800 757 607 with any questions or to make an appointment with one of our planners.

Disclaimer:
The information on this page has been issued by Maritime Financial Services Pty Limited (MFS). It contains general information that doesn’t take into account your individual objectives, financial situation or needs. It’s important to consider how appropriate this general information is in relation to your situation before making an investment decision. We recommend that you seek financial advice before making any decisions regarding your super or investments. The information on this page is current at the time of publishing.

 
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