‘The dog ate my superannuation fund’ sounds like the punchline to a bad joke, but that doesn’t mean it’s any less ridiculous than most of the other excuses people use for not saving for retirement.
These three excuses are just as implausible, irresponsible and simply terrible as casting man’s best friend as the real villain. If you’ve been using one of these shocker excuses for putting off saving for your retirement, you’ve no one to blame but yourself.
1. “It’s ages away”
If you’re in your mid-twenties, there is actually a small chance you could be just as close to retirement as you are to your toddler years. Data from the Australian Bureau of Statistics highlights how 5 per cent of Australians actually retire at the spry age of 40-45. If that doesn’t make you spit the dummy, a further 16 per cent are retired at 55-59. Put this into real numbers, and it means that approximately one in every five Australians is retiring by their 60th birthday – a full five years before they hit the official retirement age in Australia.
So before you go thinking that retirement doesn’t kick in until much later in life, remember that it’s not really all that far away.
2. “I won’t need much when I’m older”
Think you’re going to live off two-minute noodles in a wee granny flat above your kids’ house after you leave the workforce? While frugal aspirations may be admirable, it’s likely you’ll need more than you think.
Basic living expenses – including everything from medical costs to furniture – may rise over time, and don’t forget about that lifelong dream to cruise around the world, spoil your grandkids rotten and live out your golden years in the lap of luxury!
3. “I don’t know how”
Potentially the most inexcusable excuse of them all, not knowing how to save for retirement really is about as illogical as the dog eating your homework. All you need to do is ask.
A parent, a financial advisor, a trusted friend, or even your bank. There are plenty of places to go for help and advice and many people willing to give you a hand. Don’t hesitate to give Virgin Money a call to chat about your superannuation options.
What’s your excuse?