2021 is the year to build healthy habits
When you’re in your late 50s or over, retirement is just around the corner, so it’s time to find ways to add more funds to your retirement account. This may mean revaluating your budget to ensure you end up with the retirement you want and come to understand what entitlements you have under super.
1. Know what your super fund can do for you
Once you hit age 60, you may be able to save on tax when contributing to your super account. The way in which you could do this depends on your situation and you’d need to speak with us so we can understand your needs in retirement.
Knowing these entitlements can make a significant difference to your retirement goals. Did you know that when you transfer some or all of your accumulation account balance to start an eligible Vision Super retirement pension for the first time on or after 1 January 2021, you may receive a credit towards the establishment of your pension account? We refer to this credit as a Retirement bonus. You may also be eligible to a Retirement bonus when your Vision Non-commutable account based pension becomes a retirement income stream.
2. Invest for the decades to come
You may be viewing age 65 as the “end goal” but that’s not always the case. You’re likely to live 20 years or more and if you’re 55 now, that’s an additional 35 years of investing and dealing with market fluctuations. Compounding interest is as important when you’re in your 20s as it is in your 60s. Take things step by step and think about the long-term and you will find that your money may work hard to take care of you later on.
3. Avoid acquiring new debt
When your children fly the coop, you may decide to downsize but you might want to focus on avoiding acquiring new debt. Before you decide to take on new long-term debt, consider your cashflow and how it will impact you in retirement when you have no new income coming in.
There are many ways you can make your money work harder for you, and you’re not expected to know them all. If you’re confused about strategies like salary sacrifice, let the experts handle it – generally this financial advice on single super topic comes at no cost to our members. If you’d like to have a chat with us about how to make your savings grow, call us on 1300 300 820 Monday to Friday 8:30am to 5pm.