Plan today to enjoy tomorrow

Many people think retirement is about stopping work. But it’s more helpful to think of it as moving into a new stage of life. A stage that will bring new experiences and challenges. Invest a little time now to plan for the transition, and you’ll be rewarded with a fulfilling, happier retirement.

We plan for much of our working lives, but so many people fail to plan for retirement. Retirement can deliver some of the best years of your life, but only if you properly prepare for it.

Work plays an important role in our lives and sometimes people can feel a loss of identity when they stop working. Have you thought about how you’ll handle the change when you stop work? What will you do to stay active and involved? Staying connected and engaged with others is important. Consider how you’ll meet these social challenges. One great way is to join a club or establish networks with people of similar interests. What will you do to stay fit and healthy? Start now with regular physical exercise and a sensible diet. It’s also good to keep your mind active and exercise it regularly with anything from crosswords to learning a new skill.

These are all important things to consider when planning for your future. Of course, organising your finances is important too and there are things you can do to prepare while you’re still working.

The fact is, your super may need to last you longer than you think. Today, life expectancy for women is 89 and for men it’s 86 - and many of us are living even longer.¹ That’s why it’s really important to develop a plan that will help make your super last the distance.

How much will you need to maintain a ‘comfortable’ lifestyle?

The Association of Superannuation Funds of Australia have developed an indicative Retirement Standard of how much you need to fund a ‘comfortable’ life in retirement. By their calculations, in order to enjoy a comfortable lifestyle, single people will need $545,000 and couples $640,000 in super when they retire.¹ That will deliver an annual income of around $43,000 and $60,000 respectively¹, so you can enjoy such things as good health care, fast internet, a mobile phone, some travel, entertainment, good quality clothing and household goods.

While these figures may or may not surprise you, there are many other factors to consider, such as if you own your own home, and importantly, what you do between now and the day you retire.

Setting a realistic date for retirement can help you can use the years leading up to that time to get your finances in good shape. Try to minimise outgoings now and put a little more into super, as every bit extra will help. Pay off credit cards and any other debts you may have.

Make a smooth transition into retirement

You don’t have to stop work altogether just because you’re old enough to do so. You may want to consider easing into retirement with a transition to retirement pension product. ESSSuper’s Working Income Stream is product that enables our members to access their super while they continue to work full or part time. The Working Income Stream converts into an ESSSuper Retirement Income Stream when a member permanently retires after reaching preservation age or automatically at the age of 65. This could make managing your super easier.

Arm yourself with the facts

Before making any important decisions about retirement, gather all the relevant facts so that you can make informed choices. The ESSSuper and MoneySmart websites are a great place to start. You can also speak with an Member Education Consultant or ESSSuper Financial Adviser² to ensure you’re aware of all your options. ESSSuper also run regular seminars on a wide range of topics that you can attend for free.

In retirement, as in the rest of life, it’s true that money alone doesn’t buy happiness. But by investing some time to plan now, you can approach your new stage of life with every prospect of it being a satisfying time.

1. How much super will I need?, ASFA Super Guru
2. ESSSuper Financial Advisers are authorised representatives of Link Advice Pty Ltd (Link Advice). Link Advice holds a current Australian Financial Services Licence No. 258145 and is responsible for the financial services provided to you. ESSSuper has an arrangement with Link Advice Pty Ltd to provide financial advice to ESSSuper members. ESSSuper pays Link Advice a fee for this service. Neither the Board, nor the Victorian Government, guarantee or endorse any recommendations made by Link Advice, or are responsible for the advice and actions of Link Advice.

The information contained in this document is of a general nature only. It should not be considered as a substitute for reading ESSSuper’s Product Disclosure Statement (PDS) that contains detailed information about ESSSuper products, services and features. Before making a decision about an ESSSuper product, you should consider the appropriateness of the product to your personal objectives, financial situation and needs. It may also be beneficial to seek professional advice from a licensed financial planner or adviser. An ESSSuper PDS is available at www.esssuper.com.au or by calling 1300 650 161.

Plan today to enjoy tomorrow

Many people think retirement is about stopping work. But it’s more helpful to think of it as moving into a new stage of life. A stage that will bring new experiences and challenges. Invest a little time now to plan for the transition, and you’ll be rewarded with a fulfilling, happier retirement.

How much will you need to maintain a ‘comfortable’ lifestyle?

Make a smooth transition into retirement

Arm yourself with the facts

Have you registered for Members Online?

2019 Seminar Program

Multiple super funds?

Thinking of retiring?

Do something super for your spouse.

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