How Ali got planning for his retirement  

18 April 2023

The impact of the 2008 Global Financial Crisis inspired Ali to get informed and take control of his preparation for retirement. These are lessons he hopes others, particularly those approaching retirement, can learn from.

Ali is a busy man these days.

'My neighbours here (Wentworthville, NSW) think I’m just a visitor because I’m travelling so much,' Ali laughs as he talks about his recent trips.

'I’m always in and out, in and out.'

Since retiring in 2015, Ali has been on nearly 10 overseas holidays. He travels to meet interesting people, explore new places and learn about different cultures.

Even though Ali is adventurous, he has always been conservative when it comes to finances.

'I’m not much of a risk taker, so even though I invested in some shares and a few other ventures, I wasn’t really successful,' he says.

Ali recognised that his superannuation would be an important part of life after work.

'Apart from the house, I didn't have any other big assets to rely on in retirement. So superannuation was going to be a major asset.'

As retirement neared he felt it was time to get fully prepared for the years to come. He wanted to make educated decisions and sought the help of AustralianSuper.

'I thought it was better to leave it to the experts,' says Ali, recalling the reason he began attending AustralianSuper seminars. In the seminars, Ali learned ways he could grow his super. Afterwards he began adding extra money to his super when he could afford to through a salary sacrificing arrangement with his employer.

By 2010 the impact of the Global Financial Crisis had set in. Like many people, Ali worried about his savings.

 'My savings were going southward, as were many people’s, and I started to panic like everyone else. But I got the feeling that if you want to recover the losses, you have to actually make your savings grow.'

Ali continued to attend education seminars when he could and even reached out to an AustralianSuper financial planner for further advice. He felt confident that if he didn’t panic and kept contributing, he would ride out the losses.

'Every time I attend, I learn something new,' he says.

Ali now uses his super to provide extra income in retirement through a Choice Income account which tops up his Age Pension entitlement. But during his career, Ali wasn’t always thinking about life after work. In fact, he waited until later in life to start properly planning.

'I started thinking about retirement when I was 60 years old,' Ali says. 'And I’m ok now, but I think I should have thought about it a few years before that. If I had planned earlier, I wouldn’t have had to work until 70.'

But there’s no time for second-guessing or regrets for Ali. Between travels and coffee catch-ups with old friends and co-workers, he says he is living his life to the fullest. He still has a long bucket list of destinations to get through.

Disclaimers:

The views expressed are those of the member based on their particular circumstances, reproduced with their continuing consent.

Before adding to your super, consider your financial circumstances, contribution caps that may apply, and tax issues. Salary sacrifice may affect some Government benefits and employee benefits. Consider getting financial advice before deciding what’s right for you.

*Source: The 2022 AustralianSuper Monash University Retirement Confidence Index. Based on answers from approximately 3,000 people aged 50 and over. Retirement scores are compared to the Australian average, estimated from the key socio-demographic variables captured in the study

This may include general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision consider if the information is right for you and read the relevant Product Disclosure Statement, available at australiansuper.com/PDS or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/TMD. AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.

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