Apologies to any one over 30, but this column is for the kids.
So listen up whippersnappers! I want you to do something for me, go to google images and type in “Arnold Schwarzenegger then and now.”
For anyone not up to doing the search, I’ll do the heavy lifting for you and describe the scene.
Mid 80’s Arnold, glistening pecs and six pack is matched up against current day Arnold, sagging man boobs and protruding beer belly.
It’s a scary sight and if you haven’t figured it out yet, or you just refuse to acknowledge it, we all get old.
Getting old means retiring and retirement is something that requires planning.
Of course you’re going to say “it’s too early,” well just remember how quickly Terminator turned into Chubinator.
The frightening reality is 80% of those over 65 currently rely on the aged pension, 68% solely rely on it.
And the Aged Pension is no cakewalk.
I recently read a report on pension adequacy and for those with minimal assets – relying solely on the aged pension – their quality of life suffers.
And I’m not talking about inability to take a holiday, or buy a new appliance.
I’m talking about the never ending stress of spiralling food and utility costs, while stress relievers such as independence and social contact are lost.
Superannuation may reduce your reliance on the pension, but at current compulsory contribution levels you’re not even close to being self funded.
A quick calculation shows an 18 year old requires a 12% superannuation contribution to retire on 75% of their final wage, meaning most young people are already behind the eight ball.
You’re then faced with choices like how many hours you can afford to run your heater in winter.
Increase your superannuation contributions now, or wait until you look like Arnold?
Your choice determines your retirement future.
Peter Mancell is a director of Mancell Financial Group and FYG Planners AFSL 224543. This information is general in nature and readers should seek professional advice specific to their circumstances. If you want help with your financial future we think we’re Australia’s best financial adviser contact us to learn more.
