How to plan for retirement #21DayMoneyChallenge

What does retirement look like to you?

As a kid, I pictured retirement as old people laying around in sun chairs, with big sun visors on their heads, not really doing much. In high school, I realised there is more to it than that. I started paying into my super with my first job and looked at how I could retire early. My mum passed away when I was 15 (she was 37) and it shocked me. Both my grandparents on my dads side passed away at 63, so before the normal retirement age and I realised then that I wanted to live a full life, retire when I want and be financially free.

Today, for the 21 Day Money Challenge, I want you to work out your retirement.

How to plan for retirement

You can’t plan your retirement properly if you don’t know what it will look like, when you want to retire or how much you need. It doesn’t matter what age you are, you should be aware of your superannuation and overall financial plan so you can retire when you want.

Check your superannuation

When is the last time you check your superannuation? This includes checking the balance, the fees and how it is invested, as well as doing a search to make sure all your superannuation is combined in one account. Do you have the right superannuation for your needs? Is it invested how you want it to be and are you happy with the progress?

When do you want to retire and how much do you need?

How much you will need will vary depending on your circumstances and desired lifestyle. For example, if you own your home outright, your expenses are likely to be lower than someone who needs to continue to rent. If you have known health issues or there are health issues requiring extensive care that run in your family, be sure to budget this in.

You can use a retirement calculator to work out how much you need to have saved as a lump sum to live off or you can work out how much you will need invested and giving you a decent return to live off. How you fund retirement is your choice. I recommend discussing it with a financial planner. Here are a few calculators you can play around with to find out how much you need:
https://www.industrysuper.com/retirement-info/retirement-calculators/retirement-needs-calculator/
https://www.industrysuper.com/retirement-info/retirement-calculators/retirement-balance-projection/
https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/retirement-planner

Work out what you want retirement to look like, when you want to retire and how you will fund it.

What does retirement look like for you?

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