Every day, Australians get up, go to work, cope with the stresses and strains, get home, deal with family affairs, pay bills, relax just a bit and then sink into bed as the winds of sleep arrive from the field of dreams. Then they repeat the cycle the next day. How many of those people have any reasonable idea of how they will fund their retirement, where the money will come from, where it will go, how much will they need and how much should they save now towards that funding? Not many.
There are defined contribution plans collecting money in a regular cycle because employers are making contributions, the money is taxed, invested, expenses come out and at the end of each year the employee receives a statement as to the value of their account.
Is that amount good? Should it be higher? Is it too high? What happens if I live to age 100? How is it invested? Are Australians asking themselves these questions? Possibly, but I think many are not. And for those that do ask the questions, where are the answers?
As a nation, we are sleepwalking our way to retirement and when the time comes to wake up, it’s too late to do anything about it.