Retirement is stressful; how much do you really need?

Are you thinking about retirement? It doesn’t matter if it’s one, two, five or 10 years away, the time to start planning for it is now. Addressing the issues associated with retirement, and funding your lifestyle through a long period without an income is integral to retirement planning.

What does your ideal lifestyle look like in retirement? Luxury for some, might be modest for others. A comfortable lifestyle for one couple might require $60,000, whereas another couple may require $150,000+ in order to live, what for them, is classed as a ‘comfortable’ lifestyle. Start by breaking down your desired lifestyle, thinking about the cost of everything from food and groceries, to travel, to the activities that you choose to undertake daily, weekly and monthly. By understanding the cost of your desired lifestyle, it makes understanding how much Super you’ll actually require a whole lot easier!

How does your health measure up? The average life expectancy for a 45 year old Australian today is 81 for males, and 85 for females. However, it is entirely possible that with a healthy lifestyle, you could live to 90 and beyond. We all know that our health is critically important, so understanding the relationship between how healthy we are, and what our life expectancy might be, directly ties into the equation of identifying how much Super you will need.

How much support do you want to provide your wider family? Do you aspire to help them with the mortgage, or possibly take the grandchildren for a cruise throughout the South Pacific? Consider the types of activities you’d like to be able to support your family with as, once again, this directly impacts how much Super and savings will be necessary for your desired future.

Are you thinking about supplementing your savings with the Age Pension? The basic Age Pension represents just over $20,000 for a single person, and $33,000 for a couple (just 27% of the average Australian’s income). It is important to keep in mind that your current investments, assets, and super balance may impact your Age Pension entitlement, so it is worth getting some advice on how this impacts you.

If you own a business, then the first thing you will need to prepare for is its sale. See our article from last month on business succession for more thoughts on how to make the most of this hard earned asset.

If you are looking for professional advice, free of commission and free of conflicts, please contact us, or give the team a call on 07 4783 5151.

Progressive Wealth Solutions is a Corporate Authorised Representative No.472911 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No. 4

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