The answer to this question will be different for everyone.  You will have to start off with understanding how much you spend on living expenses today.  Some people on $150,000 a year may need this level of income to sustain their living requirements whilst $50,000 may be enough for others. 

The level of expenditure today will invariably determine how much you will spend in retirement. Most likely, you will need somewhere between 65%-75% of your pre-retirement income in order to maintain the same standard of living in retirement. This, of course, will vary for some people depending on their lifestyles and spending habits today and what they will be comfortable within their retirement years. Obviously, the level of investments and super you have accumulated by the time you retire will determine how much income they generate for you to live on. This is also dependent on whether you qualify for the age pension, either fully or partially.

It is often published in the media, that to have a comfortable retirement lifestyle, a couple will need $640,000 and a single person will need $545,000, in today’s dollars (excluding the value of the family home). Unfortunately, for most people, super will not be enough to fund the kind of comfortable lifestyle that they desire and wish for. We all know the Government regularly changes the super law and move the goal posts which dissuade people in putting all their eggs in the super basket.  A build-up of good quality investments (such as property and/or shares) outside the super environment is just as important that allows you to accumulate enough wealth for you to enjoy a comfortable lifestyle in retirement. The earlier you start to do this, the more you should end up with by the time you retire. 

 

Should you need help with your retirement goals and plans, please don’t hesitate to reach out to us.