Successful Retirement Planning Australia Is Very Possible - Here's How To Start

Retirement planning Australia sounds like an oxymoron, because this country is a land of "milk and honey" and out national approach is "she'll be right, mate!".

Similarly, retirement income Australia is something that is never spoken about, but as half of us will be living to 90+, we're all going to need additional sources of income over the next 20-25 years.

Now, given that we all know that superannuation is seriously flawed, in my experience, only residential investment property can do that, in particular in Queensland over the next two decades, and even more precisely, the south-west suburbs of Brisbane is likely to be more successful than elsewhere.

Simple planning, even if you're in late career, can ensure a comfortable retirement

Start In A Supermarket

Over the years, I have helped many couples in late career rescue their retirement with my successful strategies for retirement planning Australia. And my first suggestion is to buy a school exercise book at their local supermarket.

Then we open it up, and mark it into four sections: (1) your finances (2) your health (3) family & friends and (4) your zest for living. Actually, we leave about the first third for Finances, because that is the most complicated, and because money gives us options.

Then we progressively fill each section with random thoughts - althought they aren't really random thoughts, as they are thoughts that have been supressed for years.

Catch this short video about my overall philosophy - about property, about retirement, and how to buy investment property. Then come back here to continue your exploration of options possibly available to you.

Superannuation

We've all realised by now that the goal of superannuation - to become self funded retirees - is impossble for probably 95% of the population, because the 9% compulsory contribution can never be enough. It's a simple mathematical exercise to prove that retirement planning Australia, as we currrently know it through superannuation, has failed. In other words, we need an alternative to our woeful national savings program.

A similar scheme has been operating in Singapore since the 50s, however the difference is that every worker must contribute 20% - from the very first day in the workforce. The result is that they can retire on 80% of their pre-retirement income.

But as our politicans are loath to admit mistakes, and don't want to cause widespread concern (or invite demands for a higher pension) all this is left unsaid. John Howard, as Prime Minister, froze the contributions at 9% whereas the plan that Paul Keating introduced included 1% annual increases until 15% was reached.

So today the average balance for a couple in late retirement is around $100,000, which is likely to be consumed within two years. Hence the need for continuing support from Canberra, even though government expenditure on social welfare (and defense and on health, and on education etc) will soon cripple it. So be prepared for Uncertainly.

Which is one of the reasons why I suggest that you should avoid financial planners.

Income in Retirement

We'll all like to continue with the same income, and so if a couple in late career is now bringing home $80,000 you'll want much the same, particularly in the early years. This has to be factored into retirement planning Australia, and built into the new skills set that you need.

To achieve this from superannuation, and have a nest egg left for the children, you'll need around $1,600,000 in your super fund, and on the assumption that it earns 5% pa., that's your $80,000.

Alternatively, if you want to spend every last penny yourself, you'll only need around $900,000 as you would then take 4% from the principal each year - that's $36,000 - plus the 5% earnings on $900,000. That will give you an income of $81,000 but beware, your super will be exhauseted in 20 years using this method.

However, a major problem with both strategies is that superannuation funds are not protected against inflation, and your purchasing power of your income is likely to be halved in 15 years.

The Solution

The solution to retirement planning Australia, and having adequate financial income throughtout our later years is to develop a portfolio of residential investment property.

These hardly require any contribution from you while you are still working, they are protected against inflation (because the rent will increase) and when you pick a location that will deliver capital growth, you'll retire laughing.

If you're just starting out, or adding to an existing portfolio, focus on the ideal tenant (a young couple with kids in primary school),the ideal investment product (an off-the-plan family home) and the ideal location (the south-west suburbs of Brisbane).

But you don't need any sophisticated financial engineering, so stay away from self managed super funds. The only beneficiaries with that approach are solicitors and accountants.

PS - a parallel strategy to boost your immediate cash flow would be to take whatever hobby you have and convert it into a "profitable hobby".

To Property Investing Guide (home page) from Retirement Planning Australia

To Australia Planning Retirement (group page) from Retirement Planning Au

 

If you have been directed here to read my daily blogs, you'll find them below. However if you're here because you're at the foot of an article, you can also find them under the "News & Updates" button at the top of the left hand column on this page ....

 

FREE information session

 

Hi There,

I'm Bernard Kelly, Australia's Retirement Strategist®

Please note that I am not licenced to provide Financial Advice (I have a poor opinion of superannuation, anyway) however I am happy to chat with you anytime about the solid methodolgy that I've developed over the years regarding my scientific approach to property investment.

I hold FREE Information Sessions at my Home. Everyone is welcome!

Where:

       Mt Waverley, Vic, 3149

When:

       Every month     1st Tuesday evening at 7:30pm

       Every month     3rd Saturday afternoon at 2:00pm

 

RSVP me to let me know that you would like to attend and I can then give you the address.

My mobile is             0414 778 518      

My Skype address is Bernard.Kelly1944 and

My email is admin@retirelaughing.com

Please note that there is no fee to attend

However, so that I may understand your needs better, you might like to fill in the form below with some details and questions that you doubtlessly have.  And if we can't meet face-to-face, use that form anyway so that we can chat later about your goals for wealth creation.

And feel free to take the RSS feed (below the buttons in the left hand column) and subscribe to my newsletter (use the box in the top right hand corner of this page). 

FREE BONUS - every newsletter subscriber will also receive the free bonus: the 167 page ebook by Joe Vitale "Attract Money Now". The system will send it to you automatically, and instantaneously. ´╗┐

Advertisers, Joint Venture partners and Property Developers - check out our Alexa rankings.  This is a frequently visted site and I'm always keen to explore how we can work together for mutual benefit.

FREE Consultation (Value $247-50) I'm Always Happy To Chat

Please note that all fields followed by an asterisk must be filled in.
First Name*
Last Name*
E-Mail Address*
City*
Home Phone*
Business Phone*
What Issues Will You Be Facing In The Years Ahead?*

Please enter the word that you see below.

  

Let me show you ... 

How To RetireLaughing´╗┐

(subscribers also receive the bonus free gift - the 167 page ebook
"Attract Money Now"
by Joe Vitale)

Enter Your E-mail Address
Enter Your First Name (optional)
Then

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Retire-Laughing.