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How are you preparing for retirement?


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#51 Overtherainbow

Posted 17 February 2017 - 01:17 AM

A few things stand out; renting, low income, 35 -45 years until retirement, low super.

I'd be looking at survival now.  Kids are expensive :-). I'd also use this time to look at ways to improve your income in the long term.  Look at interests and future career options.

I'd then be looking towards securing a home, either buying a small unit or having enough investments to pay rent or to sell off for a unit in the future.

When you're free of chn, I'd increase focus on saving for retirement and look at investing the best way for you.

The best time to start is yesterday, the second best option is today.

Remember there are cheap retirement options and the city is generally not one of them.

#52 Not Escapin Xmas

Posted 17 February 2017 - 05:43 AM

View PostDebbieDoesSanta, on 15 February 2017 - 06:40 PM, said:

The posts that suggest "buying a property" as though most of us have a deposit laying around is perplexing.

I totally get that. It's just that there's no rent assistance on the age pension, so without owning the place you live in, life will be very tough. :(

#53 BECZ

Posted 17 February 2017 - 06:28 AM

Like many others we need to pay our mortgage off along with either major renovations or ideally, a knock down, rebuild.  If not our maintenance bill would just kill us in retirement.  We do have halves in another house with DF's brother which we will probably have to sell to fund this.  I don't have much in super as I have been a SAHM for over 10 years.  I did put $7k extra in when I first left work as I knew it would be many years before I returned to work, but there's still not a huge deal there.

My parents split quite late in life and due to upgrading after years of being mortgage free, they still had a mortgage which needed to be split and then mum bought dad out and dad bought a unit in Sydney.  They both paid off their mortgage and mum had to put heaps into her super as they had always put the extra into dads (mum was too silly to claim on dads super.  She just wanted it over and done with.), but they both managed to retire by 60 as fully self funded retirees.  They both were school teachers, so not on huge incomes, but they saved and went without and have proven that it can be done.  It's giving me hope!

Edited by BECZ, 17 February 2017 - 06:29 AM.


#54 Puzzles

Posted 17 February 2017 - 06:57 AM

As a non home owner I'm screwed and being crawled over by others snapping up investment properties to ensure they retire rich

#55 Hypnic Jerk

Posted 17 February 2017 - 07:04 AM

Relying entirely on my husband's on the assumption he won't leave me.  

Twentysomething me would be absolutely appalled.

#56 *Nasty*Squeekums*

Posted 17 February 2017 - 08:18 AM

View PostDebbieDoesSanta, on 15 February 2017 - 06:40 PM, said:

The posts that suggest "buying a property" as though most of us have a deposit laying around is perplexing.

oh dont ya know, we all have 50g just sitting for a deposit......
we just say we dont cos like its fun........

#57 Fresh Start

Posted 17 February 2017 - 08:33 AM

View PostNot Escapin Xmas, on 17 February 2017 - 05:43 AM, said:

I totally get that. It's just that there's no rent assistance on the age pension, so without owning the place you live in, life will be very tough. :(

That's not correct. You do get rent assistance isith Age Pension if you are renting. Not that it will help much.

View PostPuzzles, on 17 February 2017 - 06:57 AM, said:

As a non home owner I'm screwed and being crawled over by others snapping up investment properties to ensure they retire rich

Or buying for their babies so their kids have a house in future!

#58 71Cath

Posted 17 February 2017 - 08:36 AM

I'm screwed.  Divorced 5 years ago, and I know my super wont be enough.  Either DS or DD will have to let me stay with them.

Not really the lofty financial goals I had when I was 30 and married and blissfully unaware...

#59 Wahwah

Posted 17 February 2017 - 08:54 AM

We decided to see a financial planner the year I turned 40. Which forced us to think about the future. Our approach currently is to get rid of debt (mortgage only) and then start putting more into super and shares. My super has been static for years because I don't contribute to it being self-employed, but DH's is much healthier.

I reckon we have 2.5 years left on the mortgage, by then I'll be almost 50.  DH is younger than me so I'm banking on him to work for another 20 years, but I'm retiring in 15.

#60 Rosepickles

Posted 17 February 2017 - 09:40 AM

We have found the barefoot book good for simple strategies that can help you start from any financial position really. I like that he is not ALL about property. As many have said, a deposit big enough to purchase a home in Sydney, or even many regional areas is out of reach for so many people. We are lucky enough to have a home (with a mortgage) and had thought we should try to purchase an investment property, but have since decided to purchase shares. This was for us a better option as the entry costs are much lower.

So my plan is:

- Have the mortgage paid off
- Have my super (which is low due to living on a PhD scholarship and maternity leave for many years)
- Have a share portfolio (we are trying to split our extra income between cash savings, extra mortgage repayments and a share fund)
- and hopefully some case saved too.

#61 No Drama Please

Posted 17 February 2017 - 09:58 AM

View PostRosepickles, on 17 February 2017 - 09:40 AM, said:

We have found the barefoot book good for simple strategies that can help you start from any financial position really. I like that he is not ALL about property.
I don't have his book but I joined their investment club for a year and that was one of my favourite things about it.

He is actually the total opposite of borrow $$$ buy 20 investment properties and just hope everything keeps going up and up. More like getting rid of debt, start off small, and setting goals, so a bit more accessible for the average person.

Actually I see his book is on special with free shipping at book depository at the moment so I might get it, a little pre-retirement planning present for myself!

#62 Soontobegran

Posted 17 February 2017 - 10:09 AM

Honestly...just praying that the meager amount of money I have in super is not once again affected by another GFC and that my DH lives at least another 5 years when the super he is living on can be taken out in a lump sum and reinvested or I don't get it when he dies.

He was forced into early retirement after my accident, I had to access mine to live.......life changes in the blink of an eye, all our preparations went completely out the window.

#63 jojonbeanie

Posted 17 February 2017 - 10:23 AM

View PostLuckyMummy ♥♥, on 15 February 2017 - 06:55 PM, said:

And even though I don't have to work for our family to survive, I am working part time anyway so that I am accumulating a little bit of super and also keeping my work options open in the future.
I think maintaining employability for the long haul is critical. Being able to earn even a small amount annually over a number of years is going to make an enormous difference to your financial stability over a lifetime. People seem to have such a short view of their income generating life. If you are in your mid 30s you probably have  double the amount of time ahead of you to work and earn an income than you have already worked in your adult life. I encourage women to work, and to study to maintain and build skills at all stages of their adult life.

Obviously having a good financial plan is critical but you also need an income to support that and for most of us this means employment.

Edited by jojonbeanie, 17 February 2017 - 10:28 AM.


#64 ~J_F~

Posted 17 February 2017 - 10:25 AM

View PostNot Escapin Xmas, on 17 February 2017 - 05:43 AM, said:



I totally get that. It's just that there's no rent assistance on the age pension, so without owning the place you live in, life will be very tough. :(

You do get rent assistance on the age pension!!!

We do nothing right now except pay normal super. Planning to buy a house in the next year or so and when the kids leave I guess we will drop more into super but right now I am happy just living and not worrying about some long off time in the future!

Edited by ~Nasty_Jodama~, 17 February 2017 - 10:28 AM.


#65 laciem

Posted 18 February 2017 - 01:25 PM

I am going to be the odd one out and say we are not banking on property for retirement. For me a home is a place to live, just look at all the elderly people living in $1M+ properties, on the pension and crying poor.

Owning a house is great and will reduce your living expenses but having a passive income stream that covers living and housing (rent or the costs of ownership) is even better. I don't believe the mandatory super contributions are enough, especially not for parents who take time off to care for kids (most often women).

We save aggressively and once we've purchased our home (for stability) will start to invest more aggressively as well. At the moment we are keeping a reasonable about of money aside for our deposit but it hurts knowing it isn't earning anywhere near its potential.

Our lifestyle is reasonably modest and provided that doesn't change, I can see us being able to self fund our retirement and retire at an age that we choose. It is a team effort though, a relationship breakdown would have a very negative financial impact on us both.




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