How to turn your retirement fantasy into reality.

By HELEN VNUK

I don’t often think about retirement, but sometimes – when the kids are wearing me out and work is grinding me down – a retirement fantasy does creep into my head.

It involves a house by the beach, piles of books and lots of good coffee. I’m sure everyone’s got their own fantasy. But the worrying fact is that most women don’t have enough superannuation to retire comfortably. That means the reality could end up being more like a cold, damp flat, daytime TV and instant coffee.

If you want to take control and achieve your life goals in retirement, Financial Adviser Sandy Wilson has some advice on how to do it.

1. Focus on owning your own home.

When you’re young, saving for a house deposit and then paying off the mortgage tend to be your priorities. That makes good financial sense.

“There’s no tax benefit in having a mortgage for your primary residence,” Sandy points out.

Just as an FYI, this post is sponsored by HOSTPLUS Super. But all opinions expressed by the author are 100% authentic and written in their own words. 

2. Start contributing to your super as early as you can.

You might not have much money to spare at the start of your working life. But if you can afford to contribute even $10 or $20 a week to your super, do it.

“The further away you are from retirement, the more compounding interest will be your friend,” Sandy says.

3. Look at investing.

You don’t have to be a hotshot driving around in a sports car to buy shares. You can get started with as little as $500 or $1,000. If you’re confident about investing directly in the share market, you can do it online through a bank. Otherwise, you can go to a sharebroker and get advice. If you don’t have a lot of money to invest, another option is managed funds. That way your money doesn’t all go into one or two shares.

Sandy says shares and managed funds can be good for people in their 20s and 30s, who might need to access their money in a hurry. “Younger people may prefer not to have all their investments locked away in super or in property,” she adds.

4. Don’t miss out on super just because you don’t have an employer.

If you’re self-employed, Sandy advises that you should be making your own contributions and claiming a tax deduction. Meanwhile, if your spouse is working and you’re not, or you’re earning less than $13,800, your spouse can make a contribution on your behalf and claim a tax deduction.

5. Make sure your super is all in the one fund.

“It’s really important, because if you’ve got multiple super funds, then you’re paying multiple fees and the fees will eat away at super,” Sandy explains.

It’s not hard to consolidate your super – just go to your super fund’s website for help. While you’re at it, make sure you track down any lost super. Your fund should be able to help you do this too, or you can do it yourself. Go to the Australian Taxation Office’s website and use their SuperSeeker tool.

6. Prepare yourself to work beyond your late 60s.

If you were born after 1965, you won’t be able to get the pension until you’re 70. So if you’re depending on the pension to get by, you’ll just have to keep working. That means keeping your skills up to date, and staying in good shape physically.

“Your health becomes something that you need to really take care of,” Sandy points out.

7. Check that your super is in the best fund for you.

“Look at fees that you’re paying,” Sandy suggests. “With an industry fund, the fees are kept to a minimum and there are no fees paid to financial advisers. An industry fund is something that I think most people should look at.”

Retirement can seem a long way away when you’re in your twenties, thirties or even forties. But just a little bit of planning now can make a big difference later on.

How would you like to spend your retirement?

We bet these billionaires aren’t too worried about a comfortable retirement…

9 in 10 women* won’t have enough super to retire comfortably. Time out of the workforce to raise a family, working part time and earning an average of 17%^ less than men can all play a part. The good news is HOSTPLUS can help you improve your situation and take control now.

Find out more at hostplus.com.au/control, or stay up to date and follow us on Facebook, Twitter, Pinterest and Instagram.