If you look at the statistics on retirement planning, it doesn't matter whether you're retiring in Perth, Sydney or Melbourne, most people address wealth creation for retirement too late. Often, the shortfall between desired retirement income and actual retirement income is alarming.
When asked about retirement planning, half of the current workforce want a retirement income of more than $40,000 per annum. Indeed, an ASFA report states that individuals need a retirement income between 60 and 100% of their pre-retirement income, which equates to between $898 and $1500 per week. The graph below shows the reality of retirement income for Australians over the age of 65.
74% of retirees receive an income of $400 or less each week, with just 3% receiving an income of between $800 and $1000 per week and only 5% enjoying an income of more than $1000 per week.
The key to addressing this shortfall is to look at retirement planning sooner, rather than later. By embarking on your long-term wealth creation strategy as early as possible, you're giving your investments time to mature. However, with a bewildering array of investment strategies to choose from, it's vital you select the right one for you.
So why property investment? Because it's a stable long-term investment and wealth creation vehicle. Over the last 20 years the median house price has risen from $80,800 to $396,400. That's an average annual growth of 8.3%, with property prices in Australia effectively doubling every 7-10 years.
Property in Perth and across Australia has long provided Australians with our basis for wealth creation. Moreover, with the inherent volatility associated with the world's stock markets, property investment is considered a relatively low-risk option – it's the logical choice for retirement planning and sustainable wealth creation.
