A staggering nine out of ten Aussies are clueless about how much money they need to enjoy their retirement, according to a new study by No More Practice Education.
In fact, two thirds of respondents believed they needed less than $1 million to live comfortably in retirement, when the actual amount ranges from $2 million – $4 million.
And women are are 70% more unlikely to know how much money they need to retire. Residents of New South Wales led the way with 24% understanding what’s required, followed by Queenslanders and South Australians at 21% and 15% respectively.
Respected finance journalist and author Vanessa Stoykov says, “These new figures, paired with the fact that up to 80% of Gen X and Y will fall short of a comfortable retirement, are terrifying. My passion – alongside many others in the finance industry – is to help people better their financial situation to achieve a better life. But unfortunately, this research highlights that there are still so many Australians who really need help.”
In answer to this issue, Vanessa has written her debut novel ‘The Breakfast Club for 40-Somethings’. Creating a genre unto itself, the book is a world-first within the finance industry as it’s told as a fable based on fictional characters. The characters are easy to identify with and they each illustrate multiple aspects of advice, without the jargon commonly associated with finance– offering a new and entertaining way to change people’s long-term behaviours for the better.
The story is told through the eyes of six former schoolmates who have all gone off along different paths and re-connect at a school reunion. It explores how the different financial decisions and behaviours of each character have led to their current situation, and what they wish they had done differently. Through storytelling, the book presents the invaluable financial and life lessons everyone needs to understand to build a solid foundation for their own life, no matter what their situation is.
The book speaks to a range of ways people can start improving their futures today.
VANESSA’S TOP TIPS TO PREPARE FOR YOUR RETIREMENT
- Don’t believe everything you hear. A great deal of people trust too deeply in other people’s opinions and beliefs. Before making any money saving or investing decisions, make sure you do your due diligence to ensure you are in line with the current climate.
- Think hard about the future, often. It’s a lot easier to say no to something today if you know what that action will mean in 5, 10, 20 years’ time. Having long term goals to work towards is vital to success.
- Admit bad habits. Most people know they spend too much money, or know that they aren’t very financially savvy, but rather than trying to make too many major changes at once it’s important to decide which areas you need to prioritize first. Start by taking an online self-assessment questionnairethat will help determine exactly what you need to unlearn about money, otherwise you risk overwhelming yourself and giving up.
- Take the first step. Making a change can be daunting, but it’s essential to success. By putting any of the above points into action, you’re on your way to improving your financial future. For me, the most important step I ever took to change my financial future and take action was to pick the right financial adviser – it was as easy as that.
You can buy The Breakfast Club for 40-Somethings here. The book is published by Wiley and is available in all major bookstores, including Big W, nationwide from 1 May, 2018. RRP $25.95.
For more information visit www.vanessastoykov.com