Are you planning your future retirement?

Retirement? Future planning?

Most people don’t want to think that far ahead, especially if they are focused on progressing in their career.

Yet future planning is important. Everyone retires at some point, and if you’re not prepared, it might not be as comfortable as you prefer.

The changing age of retirement

Retirement used to be a rather black and white subject. You work hard your whole life, get to that magical age of 65 and then retire – living off your collective nest egg and a modest pension. However, as modern medicine continues to keep us healthy, Australians are working until much later in their life.

It is because of this that the official retirement age for our fair country will be rising to 70 by around 2035, according to last year’s announcement by Federal Treasurer Joe Hockey.

Now here’s the thing: As you grow to that age, you will no doubt be working longer as well. This might make you feel disinclined to start contributing to your superannuation fund early, as you have plenty of extra earning time.

It cannot be stressed enough, however, just how important saving early really is.

Related: Retirement ages around the world

Longer life in your future retirement

A by-product of modern medicine keeping us healthier is that we will live far longer. Though the Australian Bureau of Statistics (ABS) claims that the average life expectancy right now is 79.9 for males and 84.3 for females, it is not unheard of for individuals to continue on into their 90s. Possibly even longer!

Let’s put that into perspective so you understand the importance of saving straight away.

Consider how old you are right now, no matter what age. Think about all the money you regularly spend on your rent or mortgage payments, then add one cup of bills and taxes. Next throw in a pinch of holidays and whisk in other luxuries, such as going to the movies and so forth. Finally drizzle over unforeseen costs, such as car repairs, and you have a steaming broth of expenditure stew.

Now imagine you have to achieve all of these things for another three decades after you retire. If your savings run out, you’ll need to draw upon the government pension.

Start saving now

Generally, the earlier you start saving, the longer compound interest can work for you.

Don’t wait until tomorrow to begin saving for tomorrow. That may be too late! Speak to a financial planner, do your budgets and investigate your Super options. You may like to consider Virgin Super. There’s no better time to start than right now.

Are you preparing for a lengthy retirement?