By TWD Australia

April 15, 2016 | News

Are you ready for retirement?

According to a survey based on the Aegon Retirement Readiness Index, Australia has ranked number seven in the world for being most prepared for retirement.

Funding for your retirement is seen as one of the biggest challenges that Australians face economically and socially. The results and findings in this survey that we’ll be discussing can help you work towards building a better plan for you and your family.

The survey found that the most effective strategy to ensure you are planning a healthy retirement fund is your continual saving. It also noted that there needs to be obvious changes in the way that employers and policymakers assist and guide you in saving and preparing for an extended retirement.

The report says if habitual saving was started at an early age, from say 20 years old, it could boost retirement incomes by an average of $11,000.

“Adopting this simple savings behaviour is also a realistic aspiration for most individuals,” the report says. “The profile of the habitual saver reveals that this group is not ultra wealthy. In fact, they earn on average around $US41,000 annually (approximately $A53,600), equalling $US29,000 ($A37,900) in emerging markets, which is not much higher than the typical annual salary in most countries surveyed.”

The government is critical in this situation in providing Australians with considerable and adequate information of retirement benefits in getting you to take responsibility of your future.

The report details that readiness for your retirement plan does not improve until you reach your mid-40s. “This highlights the need to get people saving consistently, and from a far younger age to enable them to have a sufficiently long time horizon to build their retirement savings … However, it is never too late to start saving, and developing a plan for retirement will help.” (http://www.aegon.com/en/Home/Research/Aegon-Retirement-Readiness-Survey/#)

If you feel you need some guidance or direction in planning your retirement goals, contact our office via info@twd.com.au

Aegon Survey can be found at the following link: http://www.aegon.com/en/Home/Research/Aegon-Retirement-Readiness-Survey/Aegon-Retirement-Readiness-Index/

 

Words by TWD Australia.