A friend of mine recently retired at 67 with $1.5 million AUD in their superannuation fund. If you don't know, Australia’s superannuation system is a mandatory retirement savings plan. Employers contribute a percentage of an employee's earnings into a super fund, at a rate of about 12%, and personal contributions are taxed at a lower rate. Under certain circumstances, we can access their superannuation funds earlier. The funds are invested, so the performance of the chosen super fund is crucial - for example, we don't want our funds going toward supplying weopons.
However, the system is harder for some, especially for women, who have career breaks for child-rearing and part-time work. A woman will have way less than a man usually and there's more financial insecurity in retirement for us. My daughter in law works for a company called Woman in Super that works with government and policy to redress this imbalance.
In my own situation, choosing to leave full-time employment early means I won't reach a super balance anywhere near $1.5 million - gosh, what a laugh. Jamie, on the other hand, feels fortunate because if he had stayed in England, he wouldn't have had any retirement savings, let alone the opportunity to earn as much as he has in Australia. He doesn't have tons, but a little more than me.
I mean, a nice fat superannuation balance is ideal, but I'm not convinced it's the ultimate goal of my life. Work to 70 to find myself physically or mentally unfit to enjoy their retirement? No thanks. Dad passed away at 77, with ample funds but regretting not having more adventures, particularly travel.
His death, coupled with the reassessment many of us had during the COVID years, stressed the importance of living fully in the present moment. We could technically take on emergency teaching roles a couple of days a week until we're 70, but neither of us feels capable of teaching full-time until then, and don't want to regret not taking opportunities to live.
Our current plan is to work for a year, then take a year (or at least six months) off to travel and enjoy life, saving during our working year to top up the coffers. Life feels dull otherwise.
Luckily, we've worked hard to debt-free and without dependents, which makes this plan possible. We don't have to worry too much about job security - we can always do a couple of days here and there emergency teaching.
We view the $1.5 million superannuation target as more of a benchmark to keep people working longer, rather than a realistic goal for everyone. While we might not be as financially affluent, we believe there are other ways to lead a fulfilling life.
And perhaps, one day, I'll receive an inheritance—hopefully far in the future, as I cherish my mother and wish for her long life. But if I reach my 70s, I'm not overly concerned about financial hardship. The key is to live fully until then, embracing life rather than working solely for the elusive "ideal" retirement fund.
With Love,
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I think that's for sure how to do it! It's SO important to be debt free in the day we live in. There is such a focus on the next "thing" that's going to keep you in debt and never let you get out of the cycle. Props to you and Jamie for steering a better direction!
Finding a great balance like what you are envisioning is important. I would ultimately like to have such a strategy in the future, I just have to get a few things in place first but I am thankfully a lot closer to debt-free than many so that's a big step in the right direction!
You don't need 1.5mil, just some BTC :)
We have some! Haven't bought more in ages but am hoping it'll go up enough to fund retirement.
You and I both. :) Though I have a bit longer of a runway. Also, once I find a job again, my super should start going up once more...
I retired at 50 and just live off my Travel Blog and Youtube income now. Hive, Steemit, Blurt….
This is possible in Canada with a Tax Free Savings Account.
TFSA
The trick is earning high interest on Long Term Guaranteed Investment Certificates (GIC)
Well done! Retiring at 70 is ridiculous. A person should enjoy freedom at an earlier age.
My wife retired at 40.
You can earn a very good income these days on YouTube with a few blogs to share your Videos. (Blurt.blog, Blurt.media , Steemit, Hive, Blogger)
Passive income while you sleep is the Key.
Earn $1,000 a day on YouTube and Blurt.media and you are making $365,000 a year.
$1000 a day is a lot :) $35 a day would be enough for me.
I know right, 100 a day would be cool!
Aim higher … Get sponsorships on YouTube with Google.
It's so competitive I wouldn't be confident at all of achieving that, and filming and editing is hard work. .... I've thought about it a lot but would find it hard to do.
I just make YouTube Shorts with my iphone …. . 1 minute videos that get thousands of views.
Earn $1 USD for every 1,000 views. It adds up fast.
Infinite passive income forever… while you sleep.
Not just 7 days.
Wow really???
What's your YouTube?
I have several YouTube Channels.
This is the one linked to my Blurt.blog / Steemit.com / Ecency etc :
Https://Youtube.com/c/OffgridTV
We can work one day as a emergency teacher and earn $400. So we are t too worried. It's just a shit job. Cost of living, desire to travel, hobbies .. we can live on less but circumstances may say otherwise.
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A year on and then a year off sounds great. It is hard to know exactly how much we are going to need. I recon all you can really do is give it a try.
It is hard to know what we will need but we can only ly try, you're right! Jamie is finding teaching so hard and he's already stressed, so i think he will go mad if he has to work next year!
Your Uncle is wise and lucky. Not like just usual employees who work for forty years and still have nothing in savings.
Sometimes, I think that job is the biggest scam on earth. You work tirelessly and still get paid so minimum that at the end of month, you have to cut down your expenses to reach the payday with dignity.
People with financial literacy and intelligence always save money to buy assets. So, after some years, they can have cashflow from their assets that gives them financial freedom and a safety net when the rain comes.
Love your mindset @riverflows! It's the same in Greece! Work till 70, then "enjoy" retirement!
With all that shit going on around the world, I prefer to just live in the moment , not work for my retirement!
What's the first stop of your upcoming trip? Gave it any thought?
We will have to spend a few weeks in my mother in laws house in Somerset prepping the car then we will drive to Europe, so will probably land in France and head toward Germany and down to Croatia. But if things kick off too much in middle east may change plans. We have tried to get to Greece so many times!!
If they don't enjoy the life, then what purpose it serves !! Your way of a fulfilling life is wealthier than theirs - real happiness.
Balancing things is so much better than getting burnt out and never actually living. Do what will make you happy 🥳🐝👍❤️
Every country has its own policy. In our country too, some employees who are in good positions are given similar facilities