Everyone should know about it! I was advised to have a 10-20 retirement year plan. I thought too late for me, but apparently it is never too late.
It wasn’t too late for a lovely friend, who retired in 2015. She started about 10years earlier. She has been enjoying having time to herself, volunteering at a hospital, occasional relief work, catching up with family, and planning her various travel destinations. Sounds like she had a plan before retiring. And that is exactly what she did.
With retirement looming, for myself included, I was advised recently that I should have considered a 10-20 year ‘towards retirement’ plan. However, for those, like me, traveling close to the end-date; from the day you take action, it will still improve your retirement balance.
I only started five (5) years ago with one positive change, and this year I spoke to my Fund’s Superannuation advisor who was very considerate of non-suave women like me. All I knew about Super, as an employee, was that it was compulsory, it was just there and I contributed fortnightly. Throw into the mix, the suggested-change in government policy; my future retirement balance was becoming more uncertain.
Prior to talking to this particular trusted friend, I was hesitant about: Who to talk to? Who would give me unbiased information? and What would it cost for advice? It all felt very murky and secret squirrelly, but I knew I had to improve my Super bottom line.
This is what I gleaned from my Super Fund discussions. Firstly, after going to the free talks and discussing Super in general, their website, looked a bit tricky for me to understand; I decided on a plan. I organised to have a $55 phone consultation and not a $550 in-depth, fill-out lots of paperwork discussion – I may consider that after the Retirement Seminars in October 2016.
The 45min phone discussion took into account my personal situation: how my Super was distributed for my age, that I was a medium risk taker, and voluntary contributions were permitted up to $25000 or up to $35000 per annum – depending on your stage in life. I found that my voluntary contributions would be taxed at 15%. Consequently, this would also reduce my gross fortnightly pay, which would then fall into the lower tax bracket of 34% tax and not 37% tax bracket. Also there was a commission charge of $1.35/fortnightly for my pay circumstances. I was starting to feel a bit more knowledgeable and as the saying goes: ‘knowledge is power’.
I found the adviser had the most up-to-date, most objective information on Super. I know everyone’s situation is different, so if you want a healthier balance at retirement call your own Super fund to positively position yourself for retirement.Everyone deserves to be informed.