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4 things you can do now to help you build a comfortable retirement

Published on November 25th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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There are many financial balls that a working adult has to juggle in life, and at times setting up a retirement plan can appear to be something that is almost impossible. But there are a few things that you can do today to help you retire comfortably. These are four things that your future self will thank you for.

Start saving

This can seem hard, especially if you have many financial commitments, but it is not impossible. Putting part of your salary away into a savings account is not only financially savvy for those rainy days, but it can add towards whatever policies you have in place to afford a comfortable living when you have retired.

The trick is to set aside an amount that you can realistically and consistently set aside when it comes to saving. ASIC found that 52% of Aussies put aside spare change into their saving account, while 17% put their money into an account they cannot touch to help them reach their saving goal.

This also means that you will have to cut back on some of your luxury expenses, but not to the point where you reduce yourself to toast and beans to survive. Once you have set an amount that you believe you can maintain you can have your savings automated to help you stick to your savings plan.

Have a policy in place

Whether it is a life insurance policy or a policy through your superannuation fund it is vital that you have a policy in place. It is usually best to get a policy in place while you are still young and healthy because it is more affordable, but even if you have surpassed this stage you can still get a life insurance policy that is within your financial reach.

For example, a 35-year-old Non-smoker who wants to take out a policy worth $500,000 will pay anything between $20-$30 dollars depending on their gender. Comparing can go a long way in the efforts to get the best value for your money, and it can also help you save in the process.

Find out how much you will need to retire comfortably

You are an individual with individual needs that cannot be compared to the next person. Therefore, going to insurers and brokers can help you get expert advice to find something that is within your financial reach and help you retire comfortably. According to ASFA, an average Australian couple will need approximately $640,000 to fund a comfy retirement. The amount you will need will differ on various factors and expenses that you will face when you retire. Insurers and brokers have been in the industry long enough to ensure you get something that will be tailor-made for you.

Start looking for ways to invest your money

Finding ways to invest your money is a good way to have something that will continue to grow long after your salary has stopped coming through. The number one asset that most Australians strive for as an investment in property. Whether that is investing in your own home and slowly renovating it to increase its value over the years until the time comes to sell or purchasing other property with the sole purpose of renting or selling it in the short term.

However, not everyone might have the finances of investing money in this way. Therefore, find a reliable niche that you know that will help you grow your money overtime.

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