2021 is the year to build healthy habits
When you’re in your late 40s or 50s, retirement may be something you’ve just started thinking about, so it’s a great 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. Pay down your debts
Since the kids are getting older, this is a great time to reclaim most of your time and money for yourself, rather than the kids. This may mean focusing on paying down any debts you may have in order to pave a retirement that funds everyday living expenses.
A great way of practicing for retirement is mimicking the lifestyle you’ll have as a way of budgeting and saving down additional funds. Not only will it get you ready to live like a retiree, but it will put some additional money into your savings.
2. Make up for lost time
To get where you need to go, you may need to consider more significant changes, like selling cars to put extra cash away. Alternatively, you may be concerned your conservative investment earnings haven’t yielded the returns you want so this stage may be your last opportunity to maintain a diversified portfolio.
3. Get on track for retirement
Having a solid foundation for retirement is something future you will thank you for. Sacrificing a little into retirement now, means you can benefit from compound interest later. A big part of getting on track for retirement is ensuring you’re aware of what entitlements you have in super, such as rolling over any unused concessional contributions into the next financial year, understanding your insurance and being comfortable with your investments, all of which have a big impact on the bottom dollar.
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.
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 a 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.