Retirement Planning becoming more difficult

Every person in the second half of their working life faces an increasing dilemma.

In one sense, it is great news because we are all living longer.  Gone are the days where we worked for 40 to 50 years and then retired for 7 to 15 years.  Our meagre savings was generally adequate.  If it wasn’t adequate, we had a pension from age 65 and with a life expectancy of only about 7 years; the burden on the government was minor.

How things have changed!  We now start work later and work less and live longer.  The result of course is that we all need to plan for up to 25 years of retirement expenses.

In one sense there is one easy answer – compound interest.  In other words, start young and let your investments in early years provide for the future.  Obviously it is not quite that simple, because our priorities in the first half of working lives are different and there is little interest in the need of retirement, which is much later.

And the lump sum on the death of a parent will on average arrive much later and might be split with a new younger spouse (step-parent).

Do you take an interest in how your superannuation funds are invested or simply let them be allocated to a balance fund by the fund manager as the default position?

Of course the good news is that we are living longer, but hopefully that is not stressing us so much that we bring an early demise.  Moderating our expenditure and expectations, achieving work-life balance and retirement plans is necessary for everyone.

 

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Cristy Houghton

Embarketing, 48 Johnston Street, Wagga Wagga, NSW, 2650

Cristy's unique career has taken her from country NSW to the city lights of Clarendon Street South Melbourne and back again. With an early career in radio as a copywriter and creative strategist, she is now a Jill of all trades as a graphic designer, website builder, blog writer, video editor, social media manager, marketing strategist and more. 

In fact, give her any task and this chick will figure out how to do it! Go on, we dare you!

No, really, we DARE you!!

Cristy has won two Australian Commercial Radio Awards (ACRAs) for Best Ad and Best Sales Promotion, and even has an 'Employee of the Year' certificate with her name on it.

Cristy and her husband James have traveled extensively through Russia, China and South East Asia, and have two fur-babies, Sooty (cat) and Panda (puppy). Cristy loves drinking coffee, meeting people to drink coffee, coffee tasting and coffee flavoured cocktails. She also enjoys road trips, TED Talks and watching cat videos on youtube.