Do you have enough money for your retirement?


Retirement is all about comfort! That’s right, toiling for all those years to whatever profession will need a good retirement and one that is carefully planned. Although it sounds like paradise, it has often been a topic that not many are willing to talk about openly. Many have described retirement as a risk and also an avoidable path that everyone has to take eventually. Even with the endless communication and information data pools within this current time, information on retirement planning is quite scares and hardly consolidated.

With financial crisis in Australia, the estimated age limit for retirement by the year 2035 will rise to 70! That doesn’t sound good does it? That piece of heaven will seem like a distant thought far from ever happening. It is important that you enjoy your retirement at whatever age you see fit and best. The big question however is, do you have enough money for your retirement?
We all know what retirement is all about, but from a financial position there are some key aspects that come into play while achieving the perfect retirement you wish for. First, before actually permanently terminating your employment one important factor to consider is whether you have adequate saving for your retirement. Working with a budget never goes wrong in any financial move you make.
Although many scholars and finance analysts try and create formulas for determining whether you are set for a retirement or not, they often do not wholly consider many factors that will give you an accurate answer to knowing if you have enough money for your retirement. Some of these main factors that should be put into consideration include the following.
1. Location of your retirement- This is a very important aspect. Do you plan on settling within an urban area or one that is far from the city? This for a fact will be very impactful on the budget set aside for your retirement. Locations of settlement will not only vary but will over the years have appreciations in rates etc. Rates are sure to go up especially within the Australian Market at this time. As stated within the Australian Commission Order Report, the Government is out to sending out a tight budget by making basic needs such as settlement much more effective. This means that for a fact rates on land and other residential areas will go up. It is therefore important to make a wise decision on where you plan on retiring. If indeed you plan on settling in Sydney, be set with a budget that will comfortably deal with the expected rates.
2. Expectations. Knowing whether you have enough money for your retirement will rely heavily on the expectations you have for the future. While planning this stage you should not have unreasonable expectations. As long as they are within your means and budget which has been planned, then you are good to go. Considering this point is one way that will give you an estimation of whether your budget is enough. Ask yourself what amount you would want to have each month, what account will run the bills and whether side businesses will be good for your retirement. This is paramount to setting your expectations and goals for your retirement and most certainly a great guideline to knowing whether you have enough money for your retirement.
3. Estate planning- This is very much important. Although it comes as last point, many often leave families in a very unfortunate state in terms of property distribution etc. This is a factor that should be considered by the late retirees 50 and above. Talk to your advisors and also financial helps that you may have. Set aside the amount you feel will be good for your estate and have a defined channel of disposing your property in future. This will make it clear for you in terms of spending your reserved funds for your retirement.
The above three points should be sufficient and are the major factors that you should consider in determining whether or not you have enough money for your retirement.
Do you have more to contribute to this topic? Fell free to leave a comment and stay social with us on social media. See you soon.