Step 4: Planning For The Future

It’s All About Having Choice

The key to life is living, not just working to retire, but there may come a time in your life when you want to change what you’ve been doing and either stop working completely or take a long holiday and work out what’s next.

To be able to have this choice though, it’s imperative that you plan ahead, even if you think retirement is for everyone else.

As a rule of thumb, it is suggested people should aim for a retirement income of between 60% to 65% of pre-retirement salary/wages³. Based on this premise, it is estimated you will need to save around 15% of your income for 40 years. The problem here is that your employer is only compelled to provide superannuation contributions for you at the current rate of 9.5% of your income per annum.

How might this be done?  – You can start contributing to super earlier in your working life, raise the combined rate of your super contributions to 15% by making personal contributions (keeping under the annual limits, of course), and take heed of the following tips throughout your working life.

Young, Single & Independent

 

Afamily - Inbetweeners

Retirement - Down Tools

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Important Information

Wallis-Smith Financial Services Pty Ltd ACN 112 623 613 t/a Wallis-Smith Financial Planning, Sam Wallis-Smith & Victoria Wallis-Smith are authorised representatives of GWM Adviser Services Ltd ABN 96 002 071 749 an Australian Financial Services Licensee with its registered office at 105/153 Miller Street, North Sydney NSW 2060.

This publication consists of general and factual information only. Its contents cannot be substituted for professional financial advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.

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The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way.

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