KICKSTART YOUR WEALTH
STORY
JULIA NEWBOULD
Plenty of research tells us we’re not saving enough, we fear having too little in retirement, we’re underinsured and our investments are too concentrated. Messages like these can leave us wondering where to start when assessing our financial health. Financial wellbeing is about tracking how much you’re earning and spending, and saving to cover planned and unexpected expenses. It’s also about the ability to set money goals and monitoring your progress to achieve them.
An Investment Trends’ survey of more than 5200 workers above the age of 40 found more than half are not as prepared for retirement as they should be. They also believe that the super guarantee (SG) won’t be enough for their retirement. We explain how to get your super back on track as well as the figures you need for a comfortable retirement.
The key here is to contribute over and above the SG when you can afford to do so. “Australians who believe they will live comfortably in retirement typically contribute 11% of their annual household income into their super fund,” says Investment Trends senior analyst King Loong Choi. “Even among lower-income households, a slight increase in the super contribution levels corresponds with greater confidence in retirement outcomes.”
When it comes to shares, people start their investment journey at different times and for different reasons. It can be seen as a stepping stone to save for a home deposit, when there is little to be earned in a bank account. For others it can be the use of extra savings to invest outside super.
Keeping an eye on the financial health of your portfolio is crucial and should be done: when you start out, to make sure you have the right investments to meet your needs; when you have built up assets, to confirm the mix is still right and adjust it if required; and when your employment or financial position changes or the health of your dividends becomes the primary focus.
Regularly checking throughout life that
