4 steps to planning a comfortable retirement

Somewhere in our 40’s or 50’s, most of us start to wonder if we are going to be able to live a comfortable retirement.  Here’s a quick 4 step process to get you started on answering that question:

STEP1

Determine how much income you will need.  The ASIC MoneySmart web site “How Much is Enough” might be a good place to start.  You could also work backwards – how much do you bring home now (ie. after tax, super etc), minus how much you save (or perhaps pay off your mortgage, which should be gone by the time your retire)?  That tells you your current spending.  How will that change in retirement?

STEP 2

Find out your current super fund balances.

STEP 3

Use a retirement calculator such as this tool, again on the MoneySmart web site, to model how things look with your current settings.  In the MoneySmart tool, toggle the “View Results” option to see income generated and how long your money lasts.

STEP 4

Assess and adapt.  Is there a gap between your retirement income need (step 1) and what the calculator says your savings will generate (step 3)?  If so, experiment with changing your retirement age, or investment option (risk), or level of contributions.  What can you do to meet your retirement income target?

 

Solving these problems is what we do every day.  If you’d like some help, make an appointment to come in and see us.  There is no fee for an initial discussion.

 

 

Important Information:

This information is of a general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain professional advice before acting on the information contained in this publication.