Will I have enough savings to retire?
Written on the 5 August 2019 by Arrow
Growing older comes with a lot of changes, but that shouldn't apply to your steady income. Here's what you need to know to keep your retirement on track.
You've worked hard for the bulk of your adult life and are looking forward to enjoying the spoils of a carefree retirement. But there's still some planning that needs to be done to ensure you're set up for life regardless of what's to come. Whether you're concerned about a possible income shortfall, have a portfolio that suffered in the global financial crisis, or are sitting pretty, it's good to know your options for securing financial freedom in the future.
How much do I need to retire?
The current system
There have been calls for mandated income streams, but this approach isn't likely to work for a person who wants to decide how and when they spend the money they have accrued over the years. What if you want to make a giant celebratory purchase, such as a trip around the world? There should be a better approach to how and when people are able to access their super. In the meantime, what else can you do to ensure that you have the funds you need when you need them?
What's my plan for the future?
What about annuities?
Another thing to keep in mind is that if you purchase a lifetime annuity and happen to die young, that leftover money most likely goes to the provider, unless you have a minimum payment term as part of your contract. You can also elect a revisionary annuity, which would pay your spouse in the event of your death.