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How are you preparing for retirement?


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#1 SPOOKYMUM

Posted 15 February 2017 - 11:55 AM

Hello everyone,
I would like to ask how you are prepaing for retirement?
I am a very low income earner, and looking to get some inspiration. Currently I only have a tiny about in superannuation,under 15k and I am over 30.

Thank you.

Edited by SPOOKYMUM, 15 February 2017 - 12:31 PM.


#2 tweedle-dee

Posted 15 February 2017 - 12:09 PM

Following with interest....

#3 Mister Mum

Posted 15 February 2017 - 12:11 PM

Abusing my body so I can die young and avoid the whole damned thing ;)

#4 born.a.girl

Posted 15 February 2017 - 12:22 PM

Your ability to throw extra money into super will increase significantly once you are not paying for offspring.  They sure are expensive (but delightful).

At 30, if you are not a house owner, I'd be focusing my attention on that rather than trying to put extra in super. (Not suggesting you can afford it, if you're a renter, just where your priorities should be.)


Mine was appalling at 45, but with fortunately then having a much higher earning capacity once offspring of school age, was able to contribute, then in my last working years, was able to contribute the maximum.


Don't be afraid of silly talk such as 'the pension won't be around then'.  It will.  Even with the recent changes, the pension conditions are still more generous than they were before John Howard made his changes.

Even if you don't have enough money to self support, you will be entitled to a health care card, and I can tell you as a creaky 64 yo that will save you plenty.

As always, it will be those without any super at all, and no house paid off at retirement age who will bear the brunt.

For those who have a house plus 'a bit' of super ($50k plus) it will mean life on the pension won't be as difficult as it's been for full pensioners of the past.

#5 SPOOKYMUM

Posted 15 February 2017 - 12:23 PM

 Mister Mum, on 15 February 2017 - 12:11 PM, said:

Abusing my body so I can die young and avoid the whole damned thing Posted Image


That is very funny lol!😆😆😆

#6 Hands Up

Posted 15 February 2017 - 12:24 PM

A combination of super, an investment property and selling our home in Sydney and moving a few hours away.

#7 SPOOKYMUM

Posted 15 February 2017 - 12:26 PM

 born.a.girl, on 15 February 2017 - 12:22 PM, said:

Your ability to throw extra money into super will increase significantly once you are not paying for offspring.  They sure are expensive (but delightful).

At 30, if you are not a house owner, I'd be focusing my attention on that rather than trying to put extra in super. (Not suggesting you can afford it, if you're a renter, just where your priorities should be.)


Mine was appalling at 45, but with fortunately then having a much higher earning capacity once offspring of school age, was able to contribute, then in my last working years, was able to contribute the maximum.


Don't be afraid of silly talk such as 'the pension won't be around then'.  It will.  Even with the recent changes, the pension conditions are still more generous than they were before John Howard made his changes.

Even if you don't have enough money to self support, you will be entitled to a health care card, and I can tell you as a creaky 64 yo that will save you plenty.

As always, it will be those without any super at all, and no house paid off at retirement age who will bear the brunt.

For those who have a house plus 'a bit' of super ($50k plus) it will mean life on the pension won't be as difficult as it's been for full pensioners of the past.

Thank you for the great post. I agree with having a house, the thought of renting while retired  is so scary.

#8 gabbigirl

Posted 15 February 2017 - 12:46 PM

If there is only one thing to do is to make sure you own somewhere to live.  renting when a pensioner is a nightmare!! I am living this with my FIL as we speak!

So grab a copy of the Barefoot Investors book and follow some simple guidelines to get some financial security.

Good luck, if you are already thinking about it now, you will be fine :)

#9 PinkCherryBlossom

Posted 15 February 2017 - 12:47 PM

I'm in my late 30s, work part time and have had lots of time off work when on maternity leave, so my super balance is also small.

Now that I am back at work, I have started putting an extra $50 p/f into my super. I have also changed my super investments to "growth" rather than "balanced" in the hope of getting higher returns. It is a more risky/volatile option, but I figure that I'm not retiring for another 30 years, so I should be able to ride out any storms and can change back to a more conservative option as I get closer to retirement.

We hope to own our house before retirement do we are paying as much off that as we can.

We have also started dabbling in the share market a little bit, and every now and then I'll buy $500 worth of shares to add to our portfolio. I try to go for ones that produce good dividends that can be reinvested to purchase additional shares and kind of just grow themselves IYKWIM.

#10 steppy

Posted 15 February 2017 - 12:51 PM

Doing all my travel now so I can spend my years after retirement - no doubt at age 80 by then - sitting in a purple rocking chair eating chocolates and reading books.

#11 Morally Bankrupt

Posted 15 February 2017 - 12:51 PM

We're retiring overseas where it's el cheapo

#12 nasty roses

Posted 15 February 2017 - 12:54 PM

Super, mainly. And we will own our house outright well before then, too.  

We also plan to buy an investment property in the next couple of years as an alternative form of super.

#13 born.a.girl

Posted 15 February 2017 - 12:55 PM

 PinkCherryBlossom, on 15 February 2017 - 12:47 PM, said:

I try to go for ones that produce good dividends that can be reinvested to purchase additional shares and kind of just grow themselves IYKWIM.


If you are doing reinvestment of dividends, just make sure you keep all paperwork, not just for the last seven or so years.


My PIL were otherwise quite studios with their paperwork, but did dividend reinvestment with anything they could, but didn't keep the paperwork, some of which goes back many decades.

I'm now in the fun position of sorting my MIL's finances and trying to work out the capital gain if we sell shares to pay off the aged care bond.  Good thing I'm quite enjoying myself. :)

#14 mum2345

Posted 15 February 2017 - 01:18 PM

 born.a.girl, on 15 February 2017 - 12:22 PM, said:

Don't be afraid of silly talk such as 'the pension won't be around then'.  It will.

Just as no one can say with certainty that the pension won't be around in 25 years time (I am guessing the OP is under 40 years old), no one can say with certainty that it will be around.

If a week is a long time in politics, then 25 years is a really really long time, and plenty of political changes will occur during that time.

Ignoring the binary "will be around" / "won't be around", it's probable that in the years and decades to come, the pension age will be increased, due to budget constraints and longer life expectancies. It's also possible that pension payments will be lowered, and/or the income/assets tests will be tightened.

More simply - I doubt the pension will exist in its current form 25 years from now, and it's unwise to make retirement plans based on the assumption that in 2042 it will be the same as it is in 2017.

#15 Furfeathersfleece

Posted 15 February 2017 - 01:26 PM

Absolutely nothing! I'm in my 30s with negligible super.  I'm a sahm atm and studying to retrain.

Once I reenter the workforce my super will go up.

Tbh it's not something I think about, I have many more imminent financial concerns to worry myself with.

#16 born.a.girl

Posted 15 February 2017 - 01:37 PM

 mum2345, on 15 February 2017 - 01:18 PM, said:

Just as no one can say with certainty that the pension won't be around in 25 years time (I am guessing the OP is under 40 years old), no one can say with certainty that it will be around.

If a week is a long time in politics, then 25 years is a really really long time, and plenty of political changes will occur during that time.

Ignoring the binary "will be around" / "won't be around", it's probable that in the years and decades to come, the pension age will be increased, due to budget constraints and longer life expectancies. It's also possible that pension payments will be lowered, and/or the income/assets tests will be tightened.

More simply - I doubt the pension will exist in its current form 25 years from now, and it's unwise to make retirement plans based on the assumption that in 2042 it will be the same as it is in 2017.


There is no justifiable reason to assume that our society is going to degenerate to a point where those who will reach an age where they are unable to work will be thrown on the scrapheap.

Have a look at other well off countries.   Before the age pension was reduced to a point where it was simply not survivable and OOP were having to couch surf on their children's sofas, the NDIS would go completely by the board, public hospitals would not be free, and there certainly wouldn't be any publicly funded maternity payments.

These things don't happen in isolation, they're 'whole of society' movements towards better/worse conditions.

Of course things won't be the same, they never are, but we're talking about fiddling around the edges, not having pensioners needing to sleep on the streets.  There have been constant changes in my 45 adult years.  As I said, the current pension conditions are more generous than they were decades ago.

I'm prepared to say with absolute certainty, though,  that the pension WILL be around.  I've never heard any professional of any reputable standard suggest otherwise.

Of course no one should 'rely' on it, that's why I urge people to buy a house to live in if at all possible, so they will have a roof over their head come retirement.

#17 Rilee's~Mama

Posted 15 February 2017 - 01:42 PM

I recently bought and read The Barefoot Investor and will be implementing a lot of his strategies.

My loose goal for retirement is to have my mortgage paid off, a very healthy super, some shares, a big chunk of cash in the bank.

So far, I've got a modest mortgage, some super, and a very small amount of savings. That's it.

I'm hoping to start on the Barefoot stuff in the next week or so.

#18 Cimbom

Posted 15 February 2017 - 03:13 PM

We're planning to pay off our mortgage then rent the house out and live overseas (with some work on the side until we can access super). That's the preliminary plan at this stage anyway...

#19 Charli73

Posted 15 February 2017 - 03:26 PM

Read barefoot investors book too and going to get the mortgage out if the way before we can put extra into our super..

Early 40s here we will swap to a fund with lower fees also..

#20 Madeline's Mum

Posted 15 February 2017 - 03:29 PM

We are still in our 20's and want to pay our sydney mortgage off in the next 10-15 years. We want to buy a few commercial investment properties, a small share of stocks and continue to build our super with voluntary contributions.

Hopefully, in 40 years we will be in a decent position...

#21 ~river song~

Posted 15 February 2017 - 03:37 PM

I've gone back to work to start putting contributions back into super. In a few years I will start self contributions to bring the amount up to 15% p.a of salary - once I'm full time right now I'm part time.
Due to our young age we have also elected to have our super invested in growth which while a little riskier can yield high returns than just diversified which is what most super funds have has default.
I've also swapped funds to reduce the fees we pay in super.
We are also starting to invest more in share market and we reinvest dividends.
On a practical note we are saving like mad for a house and to have a smallest mortgage as possible to pay it off asap.
That's our plan for now

#22 ~river song~

Posted 15 February 2017 - 03:49 PM

 gabbigirl, on 15 February 2017 - 12:46 PM, said:

If there is only one thing to do is to make sure you own somewhere to live.  renting when a pensioner is a nightmare!! I am living this with my FIL as we speak!

So grab a copy of the Barefoot Investors book and follow some simple guidelines to get some financial security.

Good luck, if you are already thinking about it now, you will be fine :)

Agree with this. My parents are early 70's and up ship creek without a paddle because they spent the past 30 years or so saying 'she'll be right mate' but it's not

#23 Lifesgood

Posted 15 February 2017 - 03:54 PM

Some good tips here.

Choose a good super fund and make sure you choose a growth option for investment. If you are a long way from retirement (>10yrs) you can afford to ride the ups and downs of the market. Progressively switch to balanced and then low risk/guaranteed income as you approach retirement to preserve your capital.

Buy your own home.

My mum is a pensioner with zero super and lives in a retirement village. Her costs are completely manageable because she doesn't pay rent. She sold their modest home to buy an apartment in a retirement village. She saves $200/fortnight from her pension and uses this money to pay for extras, luxuries, small holidays.

#24 IShallWearMidnight

Posted 15 February 2017 - 04:50 PM

We are planning so that our own home plus 2 investment properties will be enough to get by. (With income of 400 a week, after expenses from the rentals, and no living costs, we should be ok.)

Im not a believer in super after losing the majority during the GFC.

#25 paddington_

Posted 15 February 2017 - 04:57 PM

Paying off homeloan.




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