Getting retirement ready is one of those enduring popular topics that never seem to go away. We always hear and see in the media about how much money you need for retirement, however all these articles focus on people who aren’t in debt and have the ability to save extra money.

What happens if you are in debt and struggling? How can you possibly retire!

How can you get retirement ready?

I can already hear a barrage of people complaining about how they couldn’t possibly get ready for retirement when they are in so much debt.

What you need to do is make sure you get out of debt before you focus on your retirement. Easy for me to say, I know, but harder to do in practice.

How can I get out of debt and save for my retirement?

The first thing you need to do to get retirement ready and get out of debt is to come up with a plan.

Have a long hard look at yourself and your finances to see how you can possibly pay off your debt sooner.

It may be worth calling in a company like Debt Cutter who can negotiate with your creditors for payment terms you can afford. We may be able to negotiate lower repayment amounts meaning you have extra money left over to be putting into super. Conversely we may be able to reduce the amount of interest you will be paying freeing up money in the long run you can put away for retirement.

Free from debt, now what?

Once you have managed to pay off all your debt you need to do a few things:

  1. Make sure you never get into the same situation again!

Make sure you have good spending habits in place along with an emergency fund so hopefully you won’t have to face the same financial burdens again. It will amaze you once you are out of debt how much more money you have free for other things.

  1. Talk to a professional

Once you are out of debt the chances are you have a bit of catching up to do to ensure you can retire with a maximum amount. Get yourself a financial planner/advisor they will be able to chat to you about how to grow your money and put strategies in place to achieve this.

Before you select any advisor ensure they are a registered advisor/planner here. You can read more about investing and getting advice here.

Just because you are struggling with debt doesn’t mean you can’t afford to retire when you want to. You just have to get more aggressive and sometimes ask for help to make it happen. It’s hard to get out debt whilst trying to save for retirement but by enlisting professionals you can make the journey easier.

Yes these services cost but in the end the chances are they are either going to save you extra money or they are going to help you generate the extra income and money you need to go into retirement comfortably.

Elise Bentley
Brand & Communications Manager

Elise is passionate about finance, and is on a mission to explore and share different tactics for tackling the everyday financial challenges in realistic and achievable ways. With a background in communications, digital marketing, and public relations, Elise uses her skills to generate new ideas and content to help make finance fun.