Plan now for future income

A LOCAL financial planner has warned that compulsory superannuation contributions are not enough to safeguard retirement for Noosa residents.
Rob McGregor, of Holman McGregor Financial Services, said recent data from the Australian Bureau of Statistics (ABS) showed that almost half of those retired were forced into retirement, and should serve as a warning to those wanting to retire when they choose and with their own financial resources.
The ABS Retirement and Retirement Intentions survey found the average age for retirement is 58 for men and 50 for women, and while that sounded great, nearly half of those retired were forced into retirement by circumstances not of their own choice.
The data found 25 per cent of men and 21 per cent of women had to retire from work due to sickness, injury or disability, while 10 per cent of men and women found no work was available and 10 per cent had to leave the workforce to care for others.
The statistics showed less than 10 per cent of people retired when they wanted to and with enough money for their retirement, while 51 per cent of all those retired said their main source of incomes was the aged pension.
With the pension age increasing to 67-years-old, the pension rate just over $30,000 for a couple and $20,000 for a single person and most people spending $50,000 before retirement, the outcome is looking grim.
“Compulsory superannuation is helping somewhat, but it is not enough,” Mr McGregor said.
“In the survey, one third of people received a lump sum for their super and used it to pay off their mortgage.
“The survey also found most people are forced to retire before they’re ready and they don’t have enough money to maintain their pre-retirement standard of living.”
Mr McGregor said the only way to avoid these pitfalls was to plan and take action as early as possible.
“A good financial adviser can help you work out how much you will need in retirement and what actions you need to take to build the investments and superannuation you will need,” he said.
“There’s no time like the present.”