Starting your career is a big challenge. In the face of one job application after another, interviews and going to different companies, it is understandable to be too busy to have time to plan for retirement.
It turns out that the best time to plan to live after retirement is at the beginning of your career. In a rapidly changing world, investing actively in your future means you will be able to adapt to adversity more easily.
Dr. Hardy Hulley, a senior lecturer at Sydney University of Science and Technology, said that although government provides pension and other forms of social benefits to retirees. But in addition to that, everyone has to manage their own risks and make sure they have their own retirement plans.
It is really difficult for young people to start planning to retire now. But you can start thinking about the following things so that there won`t be much pressure in the future.
Let`s start with a pension.
retirement pay
There is a mandatory pension in Australia, and whether you are a full-time, part-time or contract worker, your employer should deposit 9.5 per cent of your salary into your pension account. This is the so-called compulsory pension (Superannuation Guarantee).. Although pensions are mandatory for employers, always check their salary to see if they receive the correct figures.
In addition, how to manage pensions and how to use pensions to invest are also noteworthy. Investing in a pension depends on where you want to invest it. Pensions can have different investment options, from conservative (undetermined but low short-term profit potential) to radical (risky but with high short-term profit potential).
When you are young, you still have the opportunity to try some risky investments to accumulate wealth quickly. Ensure that there are different types of investment, to ensure the balance and diversification of the portfolio.
"A more aggressive asset allocation will allow you to get higher returns-of course at the expense of higher risks," Hardy Hulley said.
invest
Investment is another way to plan for retirement. The sooner you start investing, the more you will see more returns. The advantage of long-term investment is that over time, your money will accumulate into a larger amount. This is the so-called compound interest return.
"savings and investment are a good thing, and the sooner you start making profits, the more you start making money because of compound returns," Hulley said.
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If you can start saving at the age of 20 and start investing in even a small sum of money. The more you get later, the more you get, so the sooner you do it, the better.
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There are a wide range of ways to invest, from low risk to high risk. Like a pension asset configuration, when you are young, you can do some risky investments, helping to make money quickly in the short run.
"you can try some risky but high-return investments because you are young and able to recover," Hulley said.
"when you`re young, you have to have some entrepreneurship to look for opportunities to invest, and as you get older, the risk of doing these things increases."
savings
It is clear that setting a savings target for yourself is a simple and effective way.
"one of the most effective ways to save is to record daily spending," career consultant Jane Jackson said.
"record your daily expenses for a month and see what you spend. You`ll find that there are some expenses that are not really necessary at all, and if you cut them off, you may save 20 or even 50 yuan a week."
By accumulating year after year, you can even save money to make high-return investments, such as real estate.
Strategic thinking
Planning for the future does require a lot of effort and thinking, especially, when that particular future is half a century away. Use some strategic thinking to think about what you really love about your career and what meaningful decisions you need to make to achieve it.
"if you think that every choice you end up will have an impact on your retirement life, then you should make a more strategic choice. If you know what you really love and direction, then you can start on the right path."
Long-term thinking can make it easier for you to plan for retirement. And you don`t have to worry about it every day. So, try thinking, investing and developing strategies from now on.
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