Were you born after 1965?
Good news, you get to work until you are 70 years old unless you fund your own retirement.
Here is a disturbing fact, 80% of the working population show no interest in their superannuation.
Let me say that again “80% of the working population do not get Financial Advice”.
And I guarantee that if you do not get advice your superannuation will not be enough to let you retire before age 70. You can blame everyone else for this problem, the Government, the baby boomers and the minority groups, but in this country the opportunities are given to you. All you need to do it pay attention and take control of your superannuation. Do this and the age pension will not be something you have to rely on in the future.
If you are 47 and below you need to go and get a copy of your last superannuation statement, your current pay slip or last tax return, make a note of your assets (house etc.) and liabilities (home loan, car loan credit card) pick up the phone and make an appointment with a financial adviser and get some advice.
What I can guarantee you is that the 20% of the working population who do get advice will not need to worry about working until age 70.
I can hear the voices in your head saying, “Financial Planners you can’t trust them look what happened to Storm Clients”. Sure some professionals in every field are not trust worthy. As such you need to make sure that you take precautions to find the right planner for you.
Below are some key points to finding the right person.
- Be cautious of a free plan. It may just be a sale pitch. Expect to pay a reasonable amount for the planner’s time. However most planners will give you a free interview to allow you to have a chance to get to see what their about before you commit.
- Be cautious of an expensive plan. I have heard of upfront costs of $60,000. Another good sale pitch is to make something very expensive. Most people are more committed to the strategy if they have paid a lot of money for the advice. A financial plan should cost between $1,100 and $3,300 depending on how complex it is.
- Be cautious of the one product adviser. Financial Planners should be able to offer a range of products.
- Check if the Financial Planner has their own licence. If they are licensed through a major bank or investment house, the advisers are restricted on what products they can use. As such you might end up with the product they can sell as opposed to the one you need.
- Make sure you speak to a number of planers before committing to getting a plan done. This way you will have a better feel for how the marketplace works.
- Know what you would like to achieve before going in. Don’t worry if you think it is not attainable. A good financial planner will set you straight. You need to know the basics, how much you would like to live on in retirement and when you would like to retire.
So if you love your job and want to do it until you are 70 years old and are happy to live on a pension, please disregard my call to action.
However, you want to take control and retire early, pick up the phone and do something about it today.