Many Australians dream of retiring a millionaire. But this dream needn’t be just a fantasy, according to finance experts. Some of Australia’s most reputable money experts recently told Business Insider how Aussies of any age can grow a million-dollar nest egg by the time they’re 65.
In Your 20s: Establish Good Savings Habits
In your 20s you have time to save on your side, so don’t waste it. Experts say you should save at least 20 percent of your income every pay cheque. Deposit this amount into a high-interest savings account or retirement account where it will compound over time. Automating the process will help you stick to your savings goal.
In Your 30s: Beware of Social Pressure to Spend
The 30s are the decade where life starts getting expensive. When you buy property and have children, retirement savings can slip down your priority list. Professional achievements are also often rewarded with higher incomes. Financial experts encourage 30-somethings to resist the pressure of keeping up with the Joneses. Inject any pay increases into your savings rather than living large. Evidence shows most millionaires grew their wealth by living below their means. If you can’t increase your savings, at least maintain the habits you developed in your 20s.
In Your 40s: Boost Your Income and Savings
Your 40s are usually your peak earning years, so finance experts recommend focusing on boosting your income. Accept the overtime and professional opportunities so that you can make more money. If you’re feeling overwhelmed, they suggest outsourcing household tasks like lawncare and financial management to make more time for your career. Making as much money as you can now will help you get ahead of the curve if health complaints force you to slow down in your 50s or early-60s.
In Your 50s and early 60s: Stay Focused & Seek Professional Help
Once you hit your 50s, you’re on the home stretch. This time of your life should be about staying on the right track. That can be easier said than done, as many 50- and 60-somethings feel compelled to spend their savings on their children and grandchildren. Finance experts urge parents and grandparents to stay the course and encourage their family members to become more financially independent. They’ll thank you for it in the long run.
It’s also a good time to get professional advice about retirement. A professional can advise you whether you’re on track for that magic million-dollar retirement. If you’re not, your finance expert can also suggest changes you can make now to get there. You can make catch-up contributions during your 50s and early 60s to boost your super balance.
While consulting a financial expert is crucial in your 50s, their professional help can assist Aussies of any age get retirement ready. Chase Edwards is your local retirement forecasting and planning specialist. Whether you want to retire a millionaire or have more modest plans, call us on 1300 854 833 to learn how we can help you.