Australia’s screen professionals contribute greatly to the economy and the nation’s cultural identity. But what happens when the work stops? Many in the arts face challenges in securing a comfortable retirement.
Self-employed artists often find it harder to save for retirement compared to traditional workers. Many do not make regular superannuation contributions. In fact, nearly half of the self-employed—about 44%—don’t contribute at all. A key reason? Many say they lack the extra income to put away for the future.
So, what does a comfortable retirement look like? It varies from person to person and is influenced by Australia’s complex retirement system. This system has three main parts: superannuation, the Age Pension from the government, and home ownership.
The Age Pension is crucial for many retirees. A report shows that around 63% of Australians aged 65 and older receive some income support, mainly through the Age Pension. While this support may not be enough compared to a full-time salary, retirees typically have lower living costs.
Home ownership plays a vital role, too. The Age Pension doesn’t include the value of a retiree’s home, making it a significant asset for many. However, those who rent or retire early face a higher risk of poverty, especially given the raising of the eligible age for the pension from 65 to 67.
Superannuation is a valuable tool for saving for retirement. It’s a tax-advantaged option that offers more certainty and flexibility. Generally, you can’t access your super until you turn 60, or 65 if you’re still working.
To give you an idea of retirement savings, the Association of Superannuation Funds of Australia (ASFA) suggests around $595,000 in super for a single person and about $690,000 for couples if they retire at age 67. This may sound daunting, but people’s expenses tend to decline as they get older, especially after their initial years of retirement, which often involve travel or extended breaks.
Your retirement plan should work for you, and there are different options once you reach preservation age. For instance, you can receive regular payments from your super, even as low as $10,000 annually while keeping your super invested. Importantly, you may still qualify for the government Age Pension while receiving income from your super.
To get started on creating your personalized retirement plan, consider using a retirement income calculator. It can help you understand what you might expect in income during retirement and how changes in contributions or retirement age can impact your savings.
Looking ahead, a spending planner can also assist in estimating how long your funds might last in retirement. With thoughtful planning, you can turn your creative career in the screen industry into a secure and prosperous retirement.
Check out this related article: Exploring the Intriguing Polyamorous Life of R&B Star Ne-Yo and His Three ‘Wives’
Source link