Are you retirement ready
Are you retirement ready?
Do you have a plan?
Events over the past few weeks have highlighted the benefits of having a plan. With those without a plan acting from a place of fear. Whether that be selling shares in a falling market or clearing shelves in coles & woolies. This fear creates panic. This has many similarities to retirement.
Over the years, we have seen many Australians approach retirement without a plan. This is when fear kicks in as they jump into the unknown. The unknown of what is next and where their income will come from.
Many who seek advice from us are looking for; direction, reassurance and peace of mind.
Ensuring you have a clear retirement plan, will not only allow you to retire on your terms, but also allow you to sleep better at night knowing your future is secure.
Retirement is a big step for most of us. For some, it may be taken after much thought and planning, or an optimistic leap into the unknown. We believe it is important to understand the transition into retirement, and what strategies are successful to ensure a good quality of life that includes the things you’re passionate about.
Philosopher Victor Frankl puts it simply,
“that when one has a reason or a purpose for which to live, one can endure almost anything. The individual is primarily responsible for their attitude to the circumstances in their life, and it is both the individual’s freedom and their responsibility to create meaning in every situation.”
Your purpose of passion may be something as simple as a holiday with the family, an experience like the Melbourne Cup, or something that can become a bit more overwhelming like retiring. Whatever you choose to create, a plan may support you in achieving these experiences
Creating a plan outlining your choices for the next 12 months, will provide a blueprint for living a more abundant life that you are truly passionate about.
Choosing your healthy retirement
Better Health Victoria advises that a person who has retirement forced on them because of redundancy may find it harder to adjust and suggests the following.
Ask your employer if it’s possible to continue working part-time in the same position.
Look for other opportunities. There may be another job you could apply for in the same company.
Apply for jobs with other companies, either full-time or part-time.
Consider retraining to update your skills and make you more employable.
Try volunteer work; it may help get your foot in the door and provide valuable contacts.
Discuss your options and expectations with your partner. Remember that meaningful activities, regular exercise and social contacts can help make retirement a satisfying time of life.
Seek professional help if you feel prolonged anxiety, stress or depression.
The Government website www.moneysmart.gov.au/retirement-income/retirement-planner has a brilliant retirement calculator that focuses on;
what income you're likely to get from super and the age pension when you retire
how contributions, investment options, fees and retirement age affect your retirement income
how working part-time or taking a break from work affects your super balance
Alternatively, AMP have a great retirement calculator that is free of charge.
https://secure.amp.com.au/ddc/public/ui/retirement-needs/
This calculator is in-depth & supports you in understanding how much you need in retirement & your likely income.
Find you lost super.
People often lose track of super when they change jobs, as they might opt for their employer to put contributions into a new fund and forget to carry over what they accumulated in a previous one. This is when super accounts can start to multiply.
When you couple that with the possibility your address and phone number may change over time, and you might forget to update your contact details with your providers, your previous super fund or funds can lose track of you.
Coming into retirement, it is prudent to understand where your superannuation benefits are & your projected retirement income.
What is lost super?
Your super fund will hold onto your super money, but report you as a lost member to the ATO if any of the following apply3:
you’re uncontactable
it hasn’t received any contributions or rollovers into your account in the last five years
your account has been transferred by another super fund as a lost member account, but no contact details for you can be located
What is unclaimed super?
Twice a year, your super fund transfers lost super to the ATO (to hold on your behalf), which is when it becomes unclaimed super. Your super fund will do this if you are:
over 65 years old, haven't made a contribution for the past two years and your fund has been unable to contact you for five years
deceased, and your fund has been unable to pay the benefit to the rightful owner
a former temporary Australian resident, and it has been six months since you left Australia and since your visa expired
entitled to be paid your ex-spouse’s super in a divorce, and the fund is unable to contact you
a lost member whose account balance is less than $6,000
a lost member whose account has been inactive for 12 months, and your fund does not have the information needed to make a payment to you
Reasons to find your super today
If you have a lost or ATO-held super account, you can reclaim it. And, the good news is, the financial advantages may be considerable. This is because a lost account could have quite a bit of money in it, particularly if it has been earning interest. Plus, if you reclaim it before it’s shifted to the ATO, there could be added benefits. These include:
you won’t lose insurance cover inside your super which you will if it’s transferred to the ATO
earnings on investments may be more favourable. This is because if your account is taken by the ATO, interest is calculated using the consumer price index (CPI).
If you’re wondering how many Australians have missing super, 2017 figures reveal there’s almost $18 billion worth of super waiting to be claimed by Aussies right across the country. With approximately 40% of people holding more than one super account, it’s worth knowing a little more about, what could be, your lost or unclaimed super.
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