The pension is helpful but not really enough to live on. On top of that, I'm doubtful there will even be a government funded superannuation scheme by the time I retire.
As Ms Maxwell pointed out, it's all about starting early. Starting now.
Even putting a small amount aside each week adds up.
It's the idea of compounding interest. As Ms Maxwell explained, money makes more money and then that extra money makes even more.
It is simple but it still seems impossible to do that when you're looking at spending half a million dollars on a house, which you will be paying off for the next 20 years at least.
Ms Maxwell had other good advice for how to save for retirement.
She said she often "bought" luxuries for her retired self.
When she was considering buying a bottle of wine, she would sometimes decide instead to forgo it and "buy" it for her 80-year-old self. By not spending the money then she would have enough to buy that bottle of wine when she was retired.
It's a good way to look at it. Instead of feeling hard done by, you're just saving it for later on.
Despite Ms Maxwell's sage advice, the thought of saving for retirement is still a scary one but it has prompted me to start looking into investing some money in something that might make a better return, instead of just being happy with earning interest from my savings account.
It's definitely food for thought.
Now I just need to make the time to do something about it.
