Home' The Franchise Review : March 2016 Contents THE FRANCHISE REVIEW
Super is about more than compliance
It's important to remember that, for employees, superannuation
is an important mechanism for funding their retirement -- a
sentiment that is echoed in our research in The Journey Begins.
The paper found that 78 per cent of older working Australians
are planning to rely on their superannuation to fund their
retirement; but, worryingly, the research also found that many
older working Australians are concerned about a shortfall of
funds in retirement.
Shortfall of funds in retirement
Nearly one third of those we surveyed had a balance of
less than $100,000, while half of the survey respondents
believed they'd need to rely solely on the Age Pension to
fund their retirement.
This suggests that while older working Australians are
conscious of the need to plan for retirement, they are still
expecting to rely on the Age Pension, other government
payments, or equity in their homes to support their retirement.
We also found that older working Australians are planning to
work longer to provide themselves with the retirement they'd
like to enjoy -- on average, respondents in this survey said they
want to retire at 67, but expect to do so at 69.
It's never too early to plan for retirement
Franchisors and franchisees have an important role to play
in helping bridge the gap between retirement expectations
and reality. The reason is simple -- the more that goes into an
employee's super now, the better their prospects in retirement.
But franchisees should also be keeping a close eye on their
own superannuation, as the same guiding principles apply.
To assist you, your franchisees and your franchisees'
employees to better prepare for retirement, here are some great
Take baby steps
Consider putting a little more aside each year to top up your
retirement savings. For example, by pocketing the cost of a
daily takeaway coffee, you could be putting nearly $1300 more
aside for your retirement annually, which is almost $6500 in
Map it out
If saving for retirement seems daunting, consider making a
plan for how you'd like your future lifestyle to look. If your
vision includes relaxing holidays, dining out and spoiling
the grandkids, think about how you're going to achieve this
financially through measured and steady contributions.
Don't double up
Surprisingly, many Australians have more than one super fund,
meaning they're flushing away a portion of their savings on
multiple sets of fees. If you think there is no need to have more
than one fund, you can avoid this extra cost (and confusion) by
combining all of your super funds together. Before combining
your super, you should check how it might affect your
insurance in your other funds, and if they have any exit fees. If
you have any questions, we recommend that you have a chat
with a financial adviser.
Have the conversation
Working super into chats with family and friends may not seem
like the hottest dinner conversation, but the earlier you start
thinking about your financial situation later in life, the more
time you'll have to prepare.
For more general information on how franchisees, franchisors and
employees can better prepare for retirement, REST has launched a new
knowledge hub, accessible at www.hub.rest.com.au, which provides easy-
to-understand tips and tools.
*The Journey Begins is an annual white paper commissioned by REST to capture the attitudes
of just over 1000 working Australians aged 50 or older toward their financial situation, plans
and expectations as they set out on the road to retirement.
^Calculated at Australia's average takeaway coffee rate of $3.54, according to research
conducted in April 2014.
Product issued by Retail Employees Superannuation Pty Ltd. Call us on 1300 300 778, or go
online at rest.com.au for a REST PDS to consider if it is right for you.
Seventy-eight per cent of older working Australians are planning to rely on their
superannuation to fund their retirement; but, worryingly, the research also found
that many older working Australians are concerned about a shortfall of funds in
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