How much do you need to retire?


There are so many books, articles and tools online these days that will help you determine the amount of money you will need in retirement. I have also create one for you FREE. There are many of us that live for the moment and don’t put too much thought into something that will happen years or decades away and then suddenly it’s time for a well deserved rest and you find your lifestyle a shadow of itself.

At 46 and newly married I realised that my superannuation won’t be enough to cover both my wife and I in retirement so fortunately for us we have decided to retire to the Philippines in the future where the cost of living dwarf’s the expense of Australian living.

Unfortunately I have seen time and time again the guy that has worked forty years building a nice nest egg only to take it as lump sum travel the world and return home broke looking for the government pension. They realise that it won’t cover their lifestyle so they begin a spiral of downsizing and sacrificing. I have even seen them return to the workforce as a result.

It’s important to start planning your retirement at ANY age, the sooner the better. The younger you are the more options you have because time is your friend. As you get older you are more limited and there becomes a sense of urgency if you don’t want your lifestyle to change dramatically.

While giving some thought to your needs in retirement I would like to suggest the following:

1. Will you have any major purchases when you retire. eg Boat, pay off the house or travel.

2. What will inflation look like in retirement. Can you outrun it with investments.

3. What insurance will you hold. Some superannuation plans have cut-offs depending on your
4. Will your partner be cared for if you should pass before them. eg Will, trusts, family squabbles.

5. What will your health be like. Look at your hereditary factors.

6. What additions to your lifestyle will you undertake eg. lawn bowls, golf

7. If you are considering retiring overseas, take a test run first.

8. How will you deal with unexpected expenses. eg house maintenance.

9. Do you qualify for government payments. eg asset tests

10. Do you need a financial advisor.

So there is no time like the present to get cracking and look at your retirement plan. Don’t forget my FREE spreadsheet to help you plan.