Have You Given Up On Retirement?

Feeling anxious about retirement is something many of us experience. Questions about income stability, retaining the family home, leaving an inheritance for the kids, and accessing quality aged care can be downright overwhelming. But here’s the thing—doing nothing because you’re overwhelmed will only magnify these problems. Action is your best ally.

Let’s start with some hard facts. The Association of Superannuation Funds of Australia (ASFA) provides an invaluable benchmark that outlines what retirement might look like financially. They break it down by lifestyle:

• Comfortable lifestyle: $50,207 for singles and $70,806 for couples per year
• Modest lifestyle: $31,867 for singles and $45,946 for couples per year
• Maximum Age Pension: $28,514 for singles and $42,988 for couples per year

These numbers assume you’ll own your home outright and enjoy relatively good health. If you can’t tick those boxes, then the budget you’ll need for a modest or comfortable retirement could significantly increase.

Relying solely on your superannuation or the Age Pension will likely leave you short of the funds required to live the life you envision. In fact, the maximum Age Pension rates don’t even match up with a modest lifestyle, let alone a comfortable one. Superannuation is beneficial but seldom sufficient on its own. It’s certainly not designed to cover large unexpected costs like medical emergencies or the need for high-quality aged care.

So where does property investment come in? It’s an excellent complement to superannuation and can even act as a cornerstone for financial stability. Through property investment, you’re looking at consistent rental income and potential capital growth. More importantly, it’s an asset you can pass down to your children, achieving that goal of leaving a legacy.

The key here is not just to invest but to invest wisely. With the right properties, purchased at the right time and in the right markets, you can turn the tide in your favour. You don’t need to be a property mogul to do this—there are strategies to suit every budget and level of experience.

Before making any big decisions, though, let’s think through some important questions to clarify your preparedness:

• At what age do you envision retiring, and have you aligned your investments accordingly?
• Are you aware of your current superannuation balance, and do you know if it’s on track to meet your retirement needs?
• Have you calculated an annual budget to sustain a comfortable lifestyle in retirement? 
• How does it compare to your expected superannuation and other income?
• Beyond superannuation, do you have multiple avenues of investment planned for retirement income?
• What are your housing plans for retirement? Will you stay in your family home, downsize, or consider other options?
• Have you mapped out a financial plan to cover health and aged care costs?
• Is leaving a legacy or inheritance important to you, and how does property investment fit into that plan?

These questions are designed to ignite the thinking process about your retirement strategy. They help build a clearer picture of where you stand and what steps you might need to take to secure a better future. Use them as a starting point in conversations with your financial advisor and property strategist. Remember, a proactive approach today can pay dividends down the road.

These questions should serve as a roadmap, leading you to more in-depth conversations with your property strategist. The aim is to replace uncertainty with focused action.

 The bottom line? Retirement doesn’t have to be a source of anxiety. Consider property investment as a viable, perhaps even necessary, complement to your existing financial plan. By taking a proactive approach, you can ensure not only a comfortable lifestyle for yourself but also a financial legacy that benefits your family for generations to come.

 Don’t allow the dream of a secure, fulfilling retirement to slip through your fingers. Look deeper into property investment; your future self will undoubtedly be grateful.