Retirement is a big decision. So how do you know when the time is right?
Although age is a significant factor when deciding to leave the workforce, there’s no set age for retirement in Australia. According to the Australian Bureau of Statistics, the average age Australians want to retire is 65.5 years, with most people retiring somewhere between the ages of 55 and 69.
For some, the decision to leave the workforce is unexpected and can be triggered by a change in circumstances (redundancy, ill health etc.), but for many Australians, timing is based on whether or not they can afford to retire.
Your finances in retirement
Have you considered what retirement looks like for you and the kind of lifestyle you’d like to have? It’s important to map out your retirement and match your lifestyle goals with your financial needs.
It can be hard to plan for a lifestyle you haven’t started living yet. According to Money Smart, you can expect to spend around 70% of your current income annually in retirement. Once you’ve thought about your lifestyle goals, you can estimate how much money you’ll need to make it happen. Your needs will likely change once you’ve retired – so don’t forget to take that into account.
Although your everyday living expenses are likely to be less, things like travel, home renovations and medical costs could affect how much you’ll need. Using a budget planner is a great way to get a better sense of your expenses.
- Take some time to think about your expenses
- Consider where your income will come from
- Take action – check your insurance and investment options, consider consolidating your super accounts if you have more than one.
Want to boost your super?
There are options for you to improve your future retirement income while you’re still working. There are lots of ways you can contribute to grow your savings – before or after tax.
Find out how much super you could have when you retire, the income this can provide, and how you could make a big difference now with our retirement savings calculator.
Let’s look at some of the things you need to consider before taking the plunge. Use this handy checklist to help you think about your lifestyle and finances in the lead up to retirement.
Have a look at some of the things you need to consider before taking the plunge. You can download our retirement planning checklist to help you think about your lifestyle and finances in the lead up to retirement.
Need help with next steps?
We can’t tell you when it’s time to retire, but we can help you prepare for a great retirement. You can talk to UniSuper’s award-winning financial advice team to maximise your savings.
Our super consultants can also provide information and general advice across a range of topics at no extra cost, whether you’re a UniSuper member or not. Book an appointment in-person on campus, via video or over the phone, or call 1800 823 842.