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Be Ready for a Comfortable Retirement

If you have good health, a circle of friends both young and old and a purpose i.e. something to do each day, then you are headed for a long life. Factors that are noted to affect longevity include medical research, living standards, nutrition and lifestyle, education, occupation, genetics and wealth.

Australia has long been called the “lucky country” and keeping in tune with this title, life expectancy has continued to increase for Australians.

Government data shows the lifespan of both sexes has increased. People born in 2015-2017 are now tipped to live to around 33-34 years longer than Australians born between 1880 and 1890.

Males born in 2015-2017 are expected to live nearly twice as long as those born in 1881-1890. Women born in the same time are expected to live an extra four years than their contemporary male counterparts to 84 years, compared to 50 years old for women born between 1881 and 1890.

In 2015-2017, 65-year-old men and women both saw significant increases, with men expecting an additional 20 years of life, and women 22 years.

The Actuaries Institute believes that a well-educated woman entering retirement today, with an affluent career and good quality housing, is just as likely to live beyond age 100 as she is to die before age 80.

The ASFA Retirement Standard in March 2017 estimated that the lump sum needed to support a “comfortable” lifestyle for a couple is $640,000 (or $545,00 for a single person) assuming a Partial Age Pension. This assumed return, at 65, life expectancy 85 and a homeowner. Their definition of “comfortable” lifestyle was $59,971 per annum a couple or $43,665 a single.

So, what does this mean to you?

  1. Check how much you have in your Superannuation and Retirement savings account.
  2. Determine what would be a “Comfortable Income” for you to live on to allow holidays, social activities and the lifestyle you enjoy.
  3. Figure out how many years you have to bridge the gap between what you have now and what you need to have at retirement.
  4. Plan what activities, Volunteer work, sport that will give you a reason to get up every day in retirement.
  5. Seek advice on how to bridge the gap.
  6. Keep yourself healthy – exercise regularly.
  7. Enjoy life with friends and family, have fun, laugh a lot.

Stay Healthy, Stay Calm, Stay Focussed.

Paul Horn

photo of Paul Horn

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