Life doesn’t magically become easy and carefree when you hit retirement. To retire in style, you need to develop a strategic plan and, most importantly, stick to it.
Once you hire retirement, your income stream is gone. All you have to live off is your super and Aged Pension if you meet the criteria. If you’re going through money to live the good life today -without saving for your future, then a comfortable retirement will likely be unachievable.
To retire in style, you need to be realistic about how much money toy need to do just that.
The ASFA Retirement Standard benchmarks the annual budget Australians need to fund a comfortable or modest retirement lifestyle.
A comfortable retirement lifestyle includes enjoying leisure and recreational activities and being able to afford luxuries such as travel – domestic and international, health insurance, a decent car, electronic equipment, household goods, clothes etc.
A modest retirement lifestyle is considered better than the Age Pension, but still only able to afford fairly basic activities.
Based on the ASFA’s categorisation of a comfortable or modest living standard, a comfortable retirement lifestyle would be necessary to retire in style.
The ASFA Retirement Standard found the benchmark annual budget to live a comfortable lifestyle is $44,412 per single and $62,828 per couple for those around 65 and slightly less for those around 85.
Do you have the savings to support your retirement?
Knowing what you want to do in retirement is a critical step in planning the retirement lifestyle you desire.
Your idea of retiring in style may differ from others, so do a stocktake of your current lifestyle to determine what you want to continue enjoying in retirement. Also, consider what you plan to do in retirement. Do you plan to renovate your house, travel overseas, buy a motor home, or move to the country? Decisions such as these will significantly impact the amount of money you’ll need to retire in style.
There is no exact way to know how much money you’ll need in retirement, but the ASFA Retirement Standard mentioned above is a good benchmark.
As retirement planning specialists, Centaur Financial Services’ financial advisors can help you determine how much you may need in retirement and develop a retirement plan that puts you on track to reach your retirement goals.
Contact a professional financial advisor at Centaur Financial Services to start planning your retirement today.
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