Increasingly thinking about retirement

At the age of 49, I am increasingly thinking about retirement. Whilst the official retirement age in Australia was raised from 65 to 67 a couple of years back, I expect the official retirement age to reach 70 by the time I get closer to retirement age - that particular government policy has already been discussed. That gives me 11 years to add to my retirement balance despite my modest employment income to improve my quality of life after 60.

I do use the term official retirement age somewhat loosely, that is when I will qualify for a government pension. That is closer to 22 years based on the official retirement date. But like everything, this is means tested; this is a government analysis of your assets and I expect to have generated enough personal wealth to not qualify for a full government pension and I don't look like qualifying for a part pension either.

I am what they term a net tax payer, whilst a large number of working Australians pay income tax, after such deductions such as family benefits A & B, child payments, any pensions or welfare payments, only 40% of the working population actually pay more tax than their deductions.

However, I have sacrificed my personal finances and standard of living to put aside a substantial sum every pay period to finance my retirement. I will qualify to gain access to my personal retirement fund once I turn 60 and I am going to do just that. I would be mad to keep contributing to a scheme that has a cap on the total balance.

I would be smarter to start drawing it down in a manner that enhances my quality of life instead of remaining in the workforce for another 7 years, aging further and diminishing my chances of international travel and adventure while I am still in reasonable health.

We have a crazy system that the hardest and most productive workers pay the most whilst the section of the population who contributes the least receives the greatest benefit. Americans would be appauled at such a system and while my politics are somewhat right of centre, I am somewhat of a closet socialist. I believe we should have a safety net as a compassionate society to assist those down on their luck through no fault of their own.

We shouldn't promote a welfare dependent society who only takes and doesn't give, if you can't work because of a disability or injury - then that is what welfare payments are for. If you are too lazy to work then you should receive nothing after a certain period of looking for work, that includes not only attending interviews but receiving feedback from prospective employers about reluctance to work.

I have spent a whole working life never drawing any benefits from the government, even in retirement I will not be costing the taxpayer any money to support me and I will still be paying tax on the funds I pull out of my retirement account. But I will not be employed full time either, I will be getting up when I feel like it, doing some exercise before my morning coffee and then working out how my day will pan out.

My plan is to do in a country where my retirement dollar goes further and the quality of life is good. I want to live overseas during the Australian winter and return home in the summer - I am looking forward to my modest retirement.