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Saving Hacks for Retirement When You Have Children
When you are hoping to start saving for your retirement, you may feel like other things take priority when it comes to setting money aside. This tends to be especially true when dependents are involved, with the costs of raising children often being the most substantial expense for many. But should your nest egg suffer while you support your little ones?
Establishing quality retirement savings
Where a superannuation fund is concerned, there are several options that can help to enhance the quality of retirement savings.
Consider the following;
- Forced saving
- Voluntary contributions through salary sacrifice (the government will tax your salary-sacrificed contributions at 15%, but this could actually be considerably lower than your marginal tax rate)
- Opting for alternative super fund investments to yield higher quality returns, or even making concessional super contributions (up to $25,000 each financial year, including your employer’s super guarantee contributions)
The above solutions may be able to help to increase your potential to save for the future. There may be more options to save outside of your superannuation fund to consider, too.
Ensuring continued income can be important when it comes to retirement savings; after all, steady earnings equal the potential to save consistently. Income protection can work to establish a monetary defense against unforeseen circumstances that could prevent you from working. These types of policies may offer support on a monthly basis, and can often assist as far as financial support is concerned should the worst happen.
Insurance can be helpful in other ways too, with trauma insurance, life insurance and permanent disability cover all working to safeguard both you and your dependents should the worst happen.
Additional financial advice can go a long way, with budgeting, family considerations, knowing how to save and which types of savings vehicles could suit your needs all playing a part in building a valuable retirement fund for you to enjoy – and without detracting from providing for your dependents.
Lindale Insurances Pty ltd ATF Lindale Insurances Trust ABN 27 027 421 832 is a Corporate Authorised Representative of Millennium3 Financial Services Pty Ltd AFSL 244252 and ABN 61 094 529 987. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice and consider a Product Disclosure Statement. For Australian Residents Only.
Disclaimer: The views expressed in this publication are solely those of the author; they are not reflective or indicative of Millennium3. They cannot be reproduced in any form without the express written consent of the author.