What are your retirement resolutions?

The New Year is always a time for reflection and resolution. It comes as no surprise, then to hear that almost 80% of us make resolutions – but fewer than 10% actually keep them!

Resolutions


With the year behind us, it’s a good idea to look to the future and make a few resolutions regarding your retirement savings. If retirement is on your horizon, here are a few resolutions that can really help you make the most of your retirement.

Resolve to … know how much you need

Do you know how much you will need to enjoy a comfortable standard of living in retirement? 

You may be surprised to learn that most people underestimate this magic figure simply because they don’t take life expectancy into account.

Thanks to improvements in medicine and technology, Australians are living longer than ever before, with expectancies at record highs. Currently, a 65-year-old man has a life expectancy of around 19 years, and a woman of the same age has a life expectancy of around 22 years. 

Life expectancy


When working out how much you’ll need, a key factor to take into account is our increasing life expectancy to ‘pad out’ your retirement number. Assume that you’ll spend at least 30 years in retirement.

Achieve this resolution - know how much you’ll need - by:

… speaking with a financial planner to get a good idea of how much you’ll need for retirement.

By coming up with an amount to aim towards, they can then help you work out a strategy that delivers a good standard of living in retirement. Your first meeting with a planner is a fact-find session and free of charge. 

Call Member Services on 1800 757 607 or click here to make an appointment online.

 

Resolve to … know how much you’ll have

According to a survey conducted by comparative site finder.com.au, a staggering 58% of Australians have no idea of how much they have in their super account, with only 42% knowing what their exact super balance is.

The danger of not knowing how much you have in super is that, without this as a starting point, you can’t take steps to improve your financial position. By extension, there’s a risk that you won’t have enough or that you’ll eventually run out of savings.

It’s reported that 1 in 4 Australians will outlive their savings by more than 10 years. And although we’d like to point out that Maritime Super members retire with a higher account balance than the super industry average, it’s still important to bear this in mind.

Outliving savings


So do you know how much you have in super? Do you know how much you’ll end up retiring with? 

Achieve this resolution – know how much you’ll actually have - by:

… engaging with your super and checking in from time to time to know what your account balance is. 

Visit our website and use our Retirement Income calculator - it will give you the best idea of how much super you’re likely to finish up with, along with what sort of income that might provide for your life after work.

 

Resolve to … know how far your savings will go

Ok, so now you know how much you’ll have – do you know how long that would last?

To work out whether you’ll have enough, a good place to start is our Pension Drawdown calculator, which can give you an idea of how long your retirement savings could last. 

Once you’ve worked out how long your money is projected to last, you can take steps to reduce your retirement savings shortfall. 

Achieve this resolution – know how long your money will last - by:

… visiting our website and using our Pension Drawdown calculator - it will give you the best idea of how long your pension, or super, is likely to last. It also helps you work out the ideal income you should take from your pension annually.


Resolve to … take a closer look at your investment strategy

Something often overlooked is the fact that your money needs to continue to work for you in retirement. While it’s understandable that you may have less of an appetite for risk once you’ve retired, it’s imperative that your money continues to deliver investment growth. 

Here’s why it’s so important that your pension is invested strategically for you: 

Retirement investment


So make sure that you’re invested in such a way that you continue to receive reasonable investment growth – if you’re unsure about your investment strategy, our financial planners are here to help you.

Achieve this resolution – make sure your investments continue to work for you in retirement - by:

… reviewing your investment strategy to ensure that it aligns with your circumstances and goals. 

Remember that our attitudes to risk and return change as we get older, which is why it’s worthwhile speaking with a financial planner. They can give you free advice over the phone regarding how to invest your pension. 

Call Member Services on 1800 757 607 or click here to make an appointment online.


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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