Accountant Aged Care Allied Health Andrew Bragg Annuity Apps Asic Asset Finance Asset Planning Asset Protection Asset Protection Strategies Assets Assets and Risks Ato Auction Audit Insurance Australian House Market Report Baby Bonus Bas Binding Death Benefit Nominations Binding Financial Agreement Binding Financial Agreements Body Corporate Bonds Borrowing Brexit Budget Budgeting Business Business Registrations Business Support Business Tax Deduction Business Value Capital Gains Tax Capital Gains Tax: Will Capital Protection Catherine Frost Cgt Checklists Commercial Loans Commercial Property Company Tax Concessional Superannuation Contribution Corporate Trustee Cryptocurrency Darren Foster Debt Debtors Deceased Estate Depreciation Dereen Wallace Director Director Id Divorce Economic Update Economy Emily Kermac Employees Estate Planning Executor Fbt Federal Budget Federal Election Finance Finances Financial Advice Financial Plan Financial Update Franking Credits Government Grants Gst Holiday House Home Office Hybrid Unit Trust Individual Ownership Insolvency Insurance Insurance In Super Interest Rates Investment Investment Loan Investment Loans Investment Property Investments Janet Kohan Jobkeeper Jobmaker Joint Ownership Ken Burk Land Tax Lending Life Insurance Linda Hamilton Loan Repayments Loans Lvr Margin Loans Margin Scheme Market Update Medical Expenses Mortgage Mortgage Broker Mortgage Broking Mygov Negative Gearing Offset Account Overseas Gifts Parental Leave Paris Financial Pat Mannix Payg Payg Variation Pension Practice Valuations Private Wealth Property Property Development Rebecca Mackie Record Keeping Redraw Facility Refinance Renovating Research & Development Retirement Retirement Planning Retirement Savings Salary Sacrifice Scams Self Managed Superannuation Self Managed Superannuation Fund Seminar Shares Small Business Smsf Smsf Borrowing Smsf Property Smsf Self Managed Superannuation Fund Steve Golding Steve Wildes Strategic Business Structuring Structures Subdividing Property Succession Plan Superannuation Superannuation Fund Tanya Hofbauer Tax Tax Benefits for Super Tax Concession Tax Deduction Tax Investment Property Tax Losses Tax Offset Tax Planning Tax Savings Tax-Free Temporary Full Expensing Tenants in Common Tessa Testamentary Trusts Tfe Training Transition to Retirement Trust Trusts Ttr Will Working from Home

By contributing into your super, you can reduce the amount of tax you pay while adding to your future retirement income. What i

By contributing into your super, you can reduce the amount of tax you pay while adding to your future retirement income.  What i

Are you dreaming about an earlier retirement, but unsure how to go about it?

According to the Australian Bureau of Statistics, 40 per cent of Aussie men and 35 per cent of Aussie women are planning to work past age 70 because they are worried about their ‘financial security’ in retirement.

But what if your goal is to retire earlier? What can you do to ensure you’ll have enough money to last you through retirement? Here are some tips to consider.

1. Have a financial roadmap

It’s a good idea to map out things like your financial goals, including major payments, health care needs and any government benefits you’ll be able to receive at different stages in your life.

2. Live more modestly

Get serious about spending less and saving more. Sign up for DIY courses to fix things yourself instead of paying to have them done. Buy groceries in bulk and share the cost with your family, friends or neighbours. Take advantage of transport and other concessions if you’re over age 60 with a Seniors Card.

3. Manage your finances well

Learn about managing your money, refinancing or consolidating your debts.  

4. Pay off your home loan sooner

The number of people over the age of 65 who are still paying off a home loan has increased by 54% in recent years[1]. If you can relate to this, think about making extra payments to increase the equity in your home or use an offset account to help you pay off your home loan sooner.

Or look at other options, like making fortnightly repayments rather than monthly to reduce interest, fees and charges. If your interest rate falls, keeping your repayments at the same amount could shave even more off your home loan.

5. A little sacrifice goes a long way

The more you can put into your super, the sooner you may be able to retire. By salary sacrificing some of your before-tax income into your super, you’ll generally only be taxed at 15%, which is lower than most people’s income tax rate.

6. Make your after-tax dollars go the distance

If you make personal after-tax contributions to your super, you could be eligible for a government co-contribution of up to $500 per year. Or your spouse could receive a tax offset by contributing to your super on your behalf.

Retiring early is a possibility, but it’s likely to take a bit of hard work, some sacrifice, and a plan to make it happen.

Darren Foster, Senior Financial Planner, Paris Financial

Follow me on Twitter @darren_df

Source: AMP.

 

[1] http://www.finder.com.au/press-release-when-youre-64-will-you-still-be-in-debt