Hedland & Newman

Why People Struggle in Retirement?

October 7th, 2015 • 6 comments

Recent research has found that 95% of working Australians are not financially prepared for a comfortable retirement and a significate number continue to delay planning for life after work. There is usually a gap in what they envisage for their retirement and what the reality is.

Around 87% will be dependent on welfare so if the pension age is increased to 70, many of us will need to consider working longer to have an income and build more retirement savings.

Think you’re too young to start worrying about retirement? Decisions you make now regarding life style and financial choices will make your retirement what you want down the track.

Whether it consists of golf club memberships, living in your dream home or luxury holidays, here’s our top tips to ensure you’re retirement ready:

Think about retirement when you think about saving

It really does pay to start thinking about your retirement when you save today.
Although in Australia if you’re employed a percentage of your income is paid to prepare for this, it’s not always enough for your future needs. The more of your income you set aside for retirement, the easier it’ll be to retire comfortably. By saving early you can ensure your retirement benefits from the value of compound interest.

Have a plan

When it comes to retirement most people don’t have a plan or retirement strategy. The success of this plan is the cumulative effect of the small steps and decisions you make each day.

By evaluating this plan, you may need to adjust your lifestyle choices of today to make it a realistic one. Living a champagne lifestyle today may get you a beer budget come retirement.

What age will you retire?

Do you know how many years your retirement savings need to provide enough income for? These days it can be safe to assume that many of us will live to the age of 90 or beyond.

With many of us wanting to retire in our 60’s, there is usually a big difference in the age people say they want to retire to when they actually do.

Insurance is important

Taking out insurance to protect your retirement plan is an important part of your strategy.. There are many types of insurance that should be considered include life insurance, health insurance and long-term care and can make the difference between a comfortable retirement or financial stress and worry.

The exciting part of getting ready for retirement

When transitioning from work life to retirement, we work less and play more. It’s more than just money we’ll need, but the reality is all retirement dreams need money — to a degree. Thinking about things like relationships, health and a life that engages your interest and fulfils you can help you save more.

Once your financial goals are in place and your retirement plan filled with motivating interests, you’re find yourself one step closer to a comfortable retirement in all areas!

Want to retire earlier? Do you know how much you need?

If you need assistance is creating a retirement plan and strategy, contact one of our wealth creation specialists today. They can help you create what you really want; a financially secure future, a retirement to look forward to and to enjoy life’s luxuries along the way.

Start your plan now

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Questions

Hi Ryan

That’s all good and well. I purchased an investment at Newman from you guys

As you know the Newman market has declined big time. In actual fact my property has lost 400k .

I recently had the property valued. This had effected my retirement big time.

When and if do you see the Newman market rebounding?

Regards Kevin Gray

Comment by Kevin gray on October 8, 2015 at 12:48 pm

Hi Kevin. Newman is quite unique as a market compared to the other Northwest towns. Due to its smaller population and housing base Newman responds quickly to both negative and positive effects upon the towns housing market. Like all supply and demand markets in the region Newman’s rental and sales values have dropped substantially over the last 12 months due to an oversupply and under-demand for housing. Newman’s vacancy rates in normalised markets previously sat at below 5o vacant properties at any one time. With current levels sitting around 115 vacant properties the market remains oversupplied. The good news for Newman is the residential vacancy rate dropping by close to 10% each month for the last 4 months and commercial sales and leasing transaction have doubled, potentially due to new projects being awarded and the town gearing up for a worker / population increase in 2016. Should Newman’s vacancy property level drop below 80 in the near future scarcity will begin to return on certain property types in the town and with it, potential rental price increase. Ryan Crawford

Comment by Crawford Realty on October 20, 2015 at 10:59 am

do you only deal with property or balanced portfolios with shares as well

Comment by erica on October 8, 2015 at 1:59 pm

Hi Erica, we specialise in property Australia-wide an assist investors to grow their portfolio’s and access leverage.

Comment by Crawford Realty on October 20, 2015 at 10:59 am

Hi Ryan. Im like Kevin and have a property in Newman. Whats your view on the future of the property market there? Thanks. Rob

Comment by Robby D on October 8, 2015 at 3:22 pm

Hi Rob. Newman is quite unique as a market compared to the other Northwest towns. Due to its smaller population and housing base Newman responds quickly to both negative and positive effects upon the towns housing market. Like all supply and demand markets in the region Newman’s rental and sales values have dropped substantially over the last 12 months due to an oversupply and under-demand for housing. Newman’s vacancy rates in normalised markets previously sat at below 5o vacant properties at any one time. With current levels sitting around 115 vacant properties the market remains oversupplied. The good news for Newman is the residential vacancy rate dropping by close to 10% each month for the last 4 months and commercial sales and leasing transaction have doubled, potentially due to new projects being awarded and the town gearing up for a worker / population increase in 2016. Should Newman’s vacancy property level drop below 80 in the near future scarcity will begin to return on certain property types in the town and with it, potential rental price increase. Ryan Crawford

Comment by Crawford Realty on October 20, 2015 at 10:58 am