Saving for retirement might not seem like a priority for you. While your employer is required by law to make contributions to your superannuation fund, it is worthwhile looking into creating your savings for retirement so that you can live comfortably. It’s worth making your retirement a priority. Here are 4 reasons to start saving for your retirement now.
We’re living longer
According to the Australian Bureau of Statistics, Australian’s are living longer and therefore have longer retirements. This is in part due to improved health services, safer working environments, and technological advances. However, this means that a lot of Australians are outliving their retirement savings as they underestimate how much money they will need for a comfortable retirement.
You cannot predict the future
You never know what is going to happen in life, so it’s always a good idea to have as much money saved as you can. When planning for retirement, you are making predictions about your health, living situation and support from the people around you. Adding to your emergency fund for retirement can help you if your circumstances change, for example becoming ill or needing to make emergency repairs to your property. This will allow you to make choices in your situation, and not be too stressed out about your financial situation.
Save at tax time
Did you know that each financial year you can add up to $25,000 of your earnings as before-tax contributions into your superannuation fund? This means that you will only have to pay 15% tax on this income saved into your superannuation fund up to $25,000. However, it is important to note that this amount includes contributions that your employer makes.
Take advantage of compounding
The sooner you start saving for retirement, the better off you will be because of compounding interest. Your money will earn interest, and the amount of interest you earn each period will continue to grow as you earn interest. Essentially, your interest is earning interest.
These are just some of the reasons that you should start saving for your retirement. It’s never too late to start, and with the help of the team at The Farm Protectors, you can set goals for your retirement and get your savings on track for your future.