You can probably expect to live to age 80 or 90, so your income needs to last the distance.
Are you after a bargain basement retirement or are you more a penthouse person?
The type of retirement you want will affect how much money you need. Think about what you want from your retirement, how you’ll spend your time and who you’ll spend it with.
Once you have a plan, you can list the things you have done to start making this happen and consider the things you still need to do.
Golf? Fudge? Concerts? Shoes? Everyone likes a little luxury. So, make sure you can afford at least a few frills in your retirement.
When you go looking, there’s oodles of information out there about how much you need for a comfortable retirement. There are brochures, websites, fancy calculators and even whole books on the topic.
Actually, so much info can be overwhelming.
Experts reckon you need about two thirds of your current annual income for each year of retirement.
The ASFA retirement standard benchmarks figures for a 'modest' and 'comfortable' lifestyle in retirement. The figures assume retirees own their own home outright and are relatively healthy. They also assume retirees are in receipt of a part Age pension and have an investment earning rate of 7% and are in today's dollars. For current annual expenditures needed for a comfortable lifestyle in retirement, visit the ASFA website.
Retirement is an intensely personal thing. One person’s ‘modest’ lifestyle might include a Beamer, while another person’s ‘comfortable’ might mean a better bicycle. And, let’s face it; the cost of living will be vastly different in Sydney than in Cygnet.
Our Retirement $ projector uses your details to see what your retirement balance might be and how long it will likely last you. You can try out different scenarios by changing the information you put in, so you can see how your retirement may be affected.
In the end, you need to work out:
If you were building a house, you'd hire an architect. If you were sick, you'd call a doctor. When it comes to your finances, a financial expert can make a massive difference – and financial advice is not just for millionaires. To make sure you can retire comfortably, consider talking to a financial planner.