There are a few key questions that people need to think about when planning for their retirement, such as:
- How much do I need (and can afford) to save for my retirement?
- How do I invest my superannuation to improve my retirement outcome?
- How do I safely draw down and spend my savings during retirement?
As compulsory Superannuation Guarantee (SG) contributions only commenced in Australia in 1992, starting at 3% of earnings and gradually increasing to 9% by 2002, it is fair to say that our superannuation system is still relatively immature. In addition, the SG only applies to employees who earn more than $450 in a calendar month and doesn’t apply at all to the self-employed and contractors in the so-called ‘gig economy’.