can i still retire in 2020?

One of the most common questions we have heard this year is “with everything going on in the world right now, can I still retire in 2020?”

The simple answer is yes!

Retirement is a destination that most people have been on the journey towards for quite some time. Chances are you’ve been planning for it by doing things like contributing extra money into super, saving on personal tax, reducing or eliminating your mortgage and ensuring your super is invested well.

Despite this, some people will still say “my super is not where I thought it would be in 2020, so I’m going to have to work for a few more years”. This really disappoints me to hear, because who wants their retirement controlled by something external going on in the world?

Whether you find yourself in this position (in 2020, or whatever year you have your sights set on to retire) comes down to how your super is invested. Ideally, it should be in a diversified portfolio consisting of shares, cash, property and fixed interest.

Of course, at times like we are seeing right now, the shares in your portfolio will be down but when you come to retire this shouldn’t matter because your best option is to use the cash and fixed interest portions of your super to fund your pension. This allows you to leave your shares alone, giving them time to return to their normal values before you need to access them.

This set up should be the same no matter what your super fund’s investment cycle is like, so take a look at your statement or contact your fund if you have questions, or reach out to have a chat with me about how we can still make 2020 your retirement year!