Can you afford to be conservative with your superannuation saving strategy.
In the 1950’s the average person’s life expectancy was to age 68. It is projected that persons born in 2010 will live on average to age 79.
Clearly if people born in the 1950’s retired at age 60 they only need to accumulate sufficient funds to maintain their retirement for 8 years. People born in 2010 will need to have retirement savings sufficient to maintain their standard of living for 19 years.
It should also be noted that in the 1950’s people commenced work earlier normally around at the age of 15 years old. Now people are completing the HSC and going onto TAFE or University and in many cases taking off a gap year. So correspondingly, they are in the work force for a shorter period of time.
For our retirement savings to last longer we either need to save more or get a better return on our superannuation investment.
Many readers in their 20’s, 30’s and 40’s are not able to save more particularly with the cost of living in the major capital cities of Australia, so the return on their investment in superannuation is ever so important.
Many younger people have 25% or more of their superannuation invested in cash, I would question the merits of this strategy.
It is not surprising that people are looking to a gearing strategy to maximise both their investment within superannuation and outside of superannuation, particularly while interest rates are at a record low for Australia
To assist in determining how to invest in property in your superannuation fund, please contact Peter Quinn by submitting an online enquiry or calling us on +61 2 9580 9166 to book an obligation free appointment.
The information in this document does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.