Hervey Bay Independent : 11th February 2016
Majority of Australians ‘worried’ about retirement New data highlights fi nancial concerns The vast majority of Australians are worried they won’t have enough money to fund their retirement, new research has revealed. According to Mortgage Choice’s inaugural Financial Confi dence survey, 65.2% of surveyed respondents said they were worried about their retirement funds. Of those surveyed, 60.7% said they would need more than $500,000 in order to retire ‘comfortably’, while a further 18.5% said they had ‘no idea’ how much money they would need. “It is clear from the data that Australians are worried about their retirement,” local Mortgage Choice franchise owner and mortgage broker Peta Short said. “The vast majority of Australians want to live what they consider a ‘comfortable’ retirement, but to do that, they believe they need to have a huge amount of money in savings.” Peta said this type of mind-set wasn’t surprising, when you consider that many industry websites recommend Australians to have almost $600,000 in savings when they retire. The Association of Superannuation Funds of Australia (ASFA) said singles should have approximately $545,000 in savings to live a ‘comfortable’ retirement. “While it is important to note that those savings can come from a variety of areas and assets – including the sale of an owner-occupied home – it is fair to say that Australians still need a lot of money in retirement and that level of money can be hard to save in just a few years,” Peta said. “It is for this reason that Australians should start planning for their retirement as early as possible. You are never too young to start planning for your retirement. And, the sooner you start planning, the better off you will be.” But while it is a good idea for Australians to start retirement planning as early as possible, the data found more than 50% of Australians don’t actually give their retirement ‘serious thought’ until they are in their 50s. “It surprises me that so many Australians are worried about retirement, yet they do nothing to plan for this event until it is all but upon them,” Peta said. “One in every four Australians said they didn’t know how much money they currently had in super, while three in four said they were not making additional contributions to their super. “The statistics would suggest Australians don’t give serious thought to how they may fund their retirement until it is too late. Australians should be looking to boost their savings pool years before they actually retire. And, one of the best ways to do that is by making additional super contributions if and where possible. “Salary sacrifi ced super contributions are taxed at 15%, which is likely to be lower than your marginal tax rate. And, because any super contributions come out of your before-tax income, they are not counted as assessable income for taxation purposes. This is a simple way to save on tax and build your wealth, as more of your income is put towards growing your superannuation. “For those Australians who want to not only retire comfortably, but retire on their own terms, they need to start planning early.” Start paying off your own home rather than someone else’s You may be pleasantly surprised by what you can afford and how reasonable owning your own home can be compared to renting. We’ll help you work out how much you can borrow, find a home loan that suits you and calculate the best way to make your repayments affordable. Contact us to book an appointment today. Important information This article is for general information purposes only. It has been prepared without considering your objectives, fi nancial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances. About Mortgage Choice Mortgage Choice is an ASX listed company that seeks to help Australians with all of their fi nancial needs. Established in 1992, Mortgage Choice was originally established to help Australians improve their fi nancial situation by offering a choice of home loan providers, coupled with the expert advice of a mortgage professional. Since that time, the company has grown and developed into a fully fl edged fi nancial services provider. Today, Mortgage Choice helps customers source car loans, personal loans, credit cards, commercial loans, asset fi nance, deposit bonds, and risk and general insurance. Further, the company offers Australians access to real, relevant and affordable fi nancial advice through our qualifi ed fi nancial advisers. Mortgage Choice has no balance sheet or funding risk, and consistently delivers strong profi ts and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA). Mortgage Choice holds an Australian Credit Licence: no. 382869 and Mortgage Choice Financial Planning Pty Limited holds an Australian Financial Services Licence: no. 422854. Both licences are issued by ASIC. Recent recognition: 2015, 2014 Australian Broking Awards Best Diversifi cation Program; 2013, 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2013, 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; 2012 Australian Broking Awards Best Training and Education; No.1 on The Adviser magazine’s 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacifi c Best Under A Billion list. Visit www.mortgagechoice.com.au or call customer service on 13 6678. Hervey Bay 4124 7822 Maryborough 4123 5022 firstname.lastname@example.org MortgageChoice.com.au/peta.short Mortgage Choice Limited ACN 009 161 979. Australian Credit Licence 382869.
4th February 2016
18th February 2016