There has been plenty of comment and speculation around recently about whether the Australian Government will seek to increase the age pension age.
Under the last Government, the pension age was increased to 67 and the general feeling seems to be that the eligibility age may be increased to age 70 at some point. The cost of funding the age pension is huge and the Government is looking at ways to ease the burden for future generations.
It must be remembered, however, that the age pension age shouldn’t be confused with retirement age.
A person can retire at any age they choose. There is no rule or legislation to dictate how long we must work. Of course there are other constraints (like money) that play a part but there is absolutely nothing that says we must wait until age 67 or 70 to retire.
The secret to funding a comfortable retirement is understanding the lifestyle you wish to lead when you stop working and understanding how much money you will need to fund those activities. It doesn’t stop there, though. Once you have an understanding of those things, a plan and strategy is required to ensure you reach the goals you have set.
Most Australians fail to plan properly for their retirement and subsequently become dependent upon one day receiving the age pension.
Good quality financial planning makes a difference and it’s never too late to start.