Seven out of 10 people over 55 who talk to The Moreton Group can actually retire sooner than they think but have been led to believe differently by discussions about how much superannuation you need to retire and ideal age recommendations.
Predictions about how much super you’ll need to retire are completely irrelevant if they aren’t calculated for your specific situation and lifestyle and haven’t included a deep and informed analysis of your present and future position based on financial, health and life scenarios.
Retirement calculators perpetuate a myth that Australians can’t afford to retire and exacerbate anxiety in a huge proportion of working Australians looking to change their lifestyles from work to retirement in the next five to 10 years.
Many near-retirees don’t know what’s possible and don’t realise they can retire on a hybrid-financial model, using their super and government entitlements to enhance their quality of life or bring retirement forward.
People should stop worrying about what age you should retire at and how much money you have in super, the first step is to find out what’s possible.
If you plan what you want to do and work backwards you will probably find you have enough money to retire earlier than you think. People should think about what’s possible first.
The Moreton Group has found that the main things people want to do when they retire is buy a four wheel drive and go touring, or buy a boat and enjoy the outdoors – and that has been the situation since before COVID. These lifestyles are very affordable.
People shouldn’t wait for a health scare to think about retirement planning. They should start the retirement conversation earlier so they plan better.