Is it too early to start planning for retirement?

So you’re mid-life, working hard, might have kids growing up fast, and commitments that keep you busy. Surely planning for retirement isn’t something you should have on your to-do list yet, right? 

As they say, ‘the best time to plant a tree was 20 years ago, the second-best time is now’. Thanks to the power of compound interest, the sooner you pay attention to your super, the better your retirement could be. 

Here are 8 things to help you get started with your retirement planning:

1. Consider when you’d ideally like to wind down from work  

Hopefully you’re able to retire on your terms. It’s a good idea to consider what age that might be, so you can set up some milestones and have a date to work towards.  

2. Think about your goals for retirement 

How would you like to spend your time in retirement? What are your future goals? If you see yourself a frequent jetsetter, you’ll need more super than if you’re planning to potter around locally.

3. Work out how much super you’ll need 

It’s the million-dollar question that causes many to stress and worry. But you might not need a million dollars to retire. Or perhaps you might need a bit more. 

Use the Retirement income calculator for an estimate of your future income,  and then take a look at ASFA’s Retirement Standard for an indication of how much you might need to achieve a comfortable or a modest retirement.

4. Get a super health check

Find out how your super’s tracking right now by logging in to MemberOnline for your balance, and then find out if it’s on track for your age by using the Compare your super tool

If your super balance’s not on track for your age, or if it’s not likely to allow you to hit your future goals, there are things you can do to close the gap – read on.

5. Make sure your super investment strategy aligns to your personal circumstances 

The way your super’s invested can make a big difference to your super balance and future retirement income. 

You have 13 investment options at CareSuper, including a Direct Investment option if you’re after more control. In general, investment options with a higher allocation to shares tend to have higher return targets over the long-term, but they’re more likely to be volatile over the short term. It’s important to choose a balance between risk and return that sits right with your timeframe and future goals.

6. Find and combine your super 

There are many upsides of making sure all your super’s together in one account - one set of fees, and less life admin for you.

See why you should consider finding and combining your super to CareSuper.* 

7. Contribute extra to your super 

Why rely solely on your employer to grow your super savings?

You can make extra super contributions before or after tax to help grow your balance, and maybe save some tax along the way. Discover more about making super contributions.

8. Consider the emotional side of retirement 

While some people take to retirement with gusto, others are left feeling directionless without the structure and responsibility of work. 

There are things you can start doing before you retire to set yourself up for a happy adjustment later. This includes thinking about how you’ll spend your time, and ensuring you have – or are looking to build – a network of friends to spend your days with. It’s also worth thinking about where you’ll live and if it’s a good idea that you and your partner retire at the same time (if relevant).  

Where to go next

Ready to dig deeper? Build a clearer picture of your retirement readiness by checking out our Retirement planning checklist.  

We also hold regular events and webinars on a range of topics to help you sort your super and help you with your planning. Discover them all and register for one (or more) here.

 

*Before combining your super into CareSuper you should consider whether this is right for you and check if you will be charged any fees. You should also check the impact on any insurance arrangements (such as loss of insurance) or other benefits.

Information correct as at 14 August 2024.