Why invest in property for retirement income?
After you retire, you need a plan to generate income. As per the Australian Bureau of Statistics, only about 10% of Aussies who retired from the labor force will earn $1,500 or more every week. It is essential to plan how you will supplement your retirement income via other investments. Investing in property is one of the ways you can get passive income with ease.
According to research, most Aussies rely on the accumulation of based savings. This is not wise and advisable because most financial goals will be met via retirement. The better alternative is to earn money from assets, i.e. high-interest savings accounts, term deposits, direct shares, property investments and contributions. With real estate property, you can have peace of mind expecting money every month or relying on the appreciation of your property with time. However, if you are not patient, you can end up selling your property at a loss or before it appreciates. Finally, it is vital to consult professionals before investing in any property. Professionals offer not only advice but also opinions on whether to buy a particular property or not. Wealth planning is crucial if you want to have asset protection in the future.
Currently, the retirement age is 66, but it is set to increase to 67 by mid-2023. By 2035, the retirement age is set to be 70 years, and this shows that there will be more time for investments to grow. However, there will be less time to enjoy investments. Ergo, being smart and planning earlier in advance is vital.
What do you need to be comfortable?
In Australia, singles need $43,601 annually while couples aged around 65 need $61,522 yearly according to the Association of Superannuation Fund. To earn about $80,000 annually, you need to be mortgage-free and have at least $2,000,000 in investments. However, if you cannot get such kind of money, it is wise to start small and develop with time.
Are you on the right track for a comfortable retirement? Call BOA & Co. accountants in Chatswood on 02 9904 7886 and our specialist will be pleased to assist you.