We all want to create something great for our future, right? To give ourselves choices to live the life we desire.

Here at CPG we find that most people we meet dream about owning their own home, travelling once a year or so, and usually say they just want to be comfortable in their retirement. Some want to help with education and be able to provide opportunities for their kids. Others would like to be able to contribute to their communities or chosen charities. And some just want to be able to do all the things they’ve wanted to do in life but haven’t yet had the chance to do. What we do find though is that most don’t want to be restricted by lack of money, in what is supposed to be the best time of their lives.

Fact is we all want a full and happy life but the reality of living today can leave us unprepared money-wise for what lies ahead.

A Few Facts To Put Your Finances Into Perspective

• By 2051 almost half of Australia’s population will be aged over 50
• Many of these people will need to continue to work because their super isn’t enough to retire on
• In fact, they say you need to save 12% of your income as super over 40 working years to come close
• As at March 2018, the maximum rate for an age pension is $826.20 p/fn for a single person and $622.80 each for a couple

Most people believe they’ll be able to fall back on their Super to support their lifestyle. Unfortunately, the reality may be vastly different.

How Much Super Do I Need?

The Association of Superannuation Funds of Australia (ASFA) calculated in 2016 that the average superannuation balance required to achieve a comfortable retirement was $640,000 for couples and $545,000 for singles. This would cover expenses such as medication, rent, food and leisure activities.

How much super you need will depend on the standard of living you want to maintain. In short, it depends on what needs you have, and what extra perks you would like to be able to afford during your retirement.

The current average life expectancy for Australians at age 65 is just over 22 years for a female, and just over 19 years for a male. The longer you live the better your average life expectancy becomes.

For example, if you reach the average life expectancy that you had at 65, that is, you reach the age of 87 for a female, and 84 years for a male, then you can expect to live another 6 or so years.

The average life expectancy for an Australian female aged 87 is 6.11 years (reaching the age of 93), and for a male aged 84 years, roughly 6.5 years (reaching the age of 90.5).

When the pension was first introduced over a century ago, it was only available to people who outlived their average life expectancy by as much as 10 years. It was an absolute safety net for those who had no other means of support. Today some level of Age Pension is paid to approximately 75 per cent of Australians over the age of 65.

This trend is not economically viable as there simply won’t be enough workers to pay retirees.

TIP: Read more about setting yourself up appropriately for your retirement and discover when you can get your super or apply for the age pension Here.

What Can You Do?

You might choose to work longer, make extra contributions or get a plan together to grow your money right now, to get you in to a better financial situation.

Often, we meet people who would like to get ahead in life but who have never actually sat down and worked out the steps they will need to take to create something better for themselves. In fact, most have absolutely no idea how much they have left over at the end of the week once all their bills have been paid. Scary stuff!

How can you better impact your financial future, you might ask? Firstly, be aware of your spending – a budget is a very important tool to use on your journey to financial security and is one of the most basic and effective tools for managing your money.

Budgeting clearly shows you how you allocate your money and present you the choices on what stuff to enjoy – based on your financial limitations.  It will save you the grief of overspending and being too much in debt. Budgeting does not stop you from enjoying stuff, it ensures that you enjoy stuff when you want it.

Secondly, invest in assets that will grow your money. You simply cannot save yourself to wealth and as property is a proven strategy most Australians feel comfortable buying this asset and building a portfolio.

Why Invest In Property?

You may have heard the saying ‘safe as houses’… Investing in property is a safe and reliable way to grow your money to build a better future for yourself, over time.

Fact:

• Property has made more people wealthy than any other investment class
• You don’t need specialist knowledge or be a rocket scientist to invest
• You don’t need large amounts of cash (you can use equity)
• You can leverage your money very well
• Investing in property bring big tax benefits
• Your rental income grows over time and can even go towards covering your costs
• You make the choices with all investment decision firmly in your control
• Improvements made to the property can increase your rental return
• Even a poor purchase decision will eventually experience growth

Even at an average 7% growth property doubles its value every 10 years. Buy the property, hold on to it and just watch it grow.

If you would like to discuss your individual situation feel free to contact us for a complimentary, no obligation chat on 08 6323 2306, send us an email to info@curtispropertygroup.mysit3.com