How do you intend to fund your retirement? Are you actively working on building a nest egg now? Or are you hoping your lucky numbers come up? A disturbing new study from BT Financial Group (BTFG) has found up to 15 percent of Australians consider a big lottery windfall part of their retirement income strategy.
While there’s nothing wrong with a little wishful thinking, Melinda Howes, BTFG’s general manager of superannuation, says it has no place in real retirement planning.
“It doesn’t make sense to financially prioritise ‘maybe’ scenarios over facts and the facts are if you don’t save for retirement and invest early, you will not have enough money to retire,” she told Money Management magazine.
Rather than investing in lottery tickets, it’s smarter to put your money into proven retirement options. Many of us have the means now, with BTFG research noting that the average Australian household is better off than they were five years ago. Roughly 71 percent of local families have money left over after paying basic living expenses, compared to just 58 percent in 2012.
So what are we spending that extra money on? It seems retirement savings are far down the list, behind holidays and travel and “unexpected occurrences.” While 51 percent say they feel confident about funding their retirement, planning for the future makes 26 percent of us feel “nervous” and “hesitant.” The remaining 21 percent feel “excited and energised” about retirement planning.
We’d all love to strike it rich. However, statisticians suggest you have a mere one in 45 million chance of winning a division one prize with a single lottery ticket. That means you’re far more likely to see a positive return on your investment when you put money into a retirement plan. Speak to the financial experts at Chase Edwards on 1300 854 833 to learn more about our proven retirement strategies.