If you haven’t already established your retirement goals, that’s OK, but it is important to take the time to map them out. Without a clear understanding of your goals you’ll have nothing tangible to work towards.
Even if you have previously established your retirement goals, use this time to check in to see whether you are still on track, or if your goals have changed. Whilst there are multiple ways to do this, the simplest and most effective way is to:
- Estimate your cost of living in retirement by utilising this provided by Industry Super. Stuck on estimating your cost of living? We’ve included below some helpful information prepared by AMP:
Industry figures show that individuals and couples around age 65 who are looking to retire today need an annual budget of $43,317 and $60,977 respectively to fund a comfortable lifestyle (assuming they own their home outright and are in relatively good health).
To live a modest lifestyle in retirement, which is considered better than living on the age pension, an individual would need an annual budget of $27,648, and a couple an annual budget of $39,7753.
These figures are helpful when thinking of retirement planning strategies. Think about how you want to live your life in retirement and add up any potential income sources you may have to support yourself. This could include things such as a superannuation fund, government entitlements, investments, savings or an expected inheritance.
You can access the full AMP article here.
- Find out your projected income when you retire by using this which helps you to work out:
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- What income you’re likely to get from super and the age pension when you retire.
- How contributions, investment options, fees and retirement age affect your retirement income.
- How working part-time or taking a break from work affects your super balance.
- How working part-time or taking a break from work affects your super balance.
- Finally, review how your projected retirement income compares to your estimated cost of living in retirement; are you still on track?
Is this something you struggle with? If you are ready to enjoy the retirement you deserve, book an initial appointment with one of our Retirement Advice Specialists.
References:
https://www.amp.com.au/retirement/prepare-to-retire/retirement-planning-tips
